Best Practices: Start/End Salary Deductions

[Guest Sorrel]

Scenario: For qualified medical (and dental and vision, but let's focus on medical) coverage that is part of Cafeteria plan, when there is a midyear election change event, coverage change effective date is first of the month following the event or notification of the event within 30-day window, whichever is later. Exceptions, of course, for birth and adoption.

If the midyear election change event results in end of coverage, the end date is the last day of the month in which the event occurred.

What are the best practices for beginning and ending corresponding payroll deductions? Pay cycle is biweekly, and different populations have alternating biweekly cycle.

Option 1.

--For new or change coverage, begin deduction or change deduction effective with the pay period in which the effective date (beginning of the month) falls, or the first pay period that is administratively feasible thereafter.

--For terminating coverage, stop deduction effective after the pay period in which the effective date of the termination (end of month) falls.

What other options? How do you handle this? Thanks!