Calculation Health insurance Amount in ADP *needs update**

Calculation Health insurance Amount in ADP *needs update**

  1. New Hire

Step on is to calculate the total months the new hire will be on health insurance until December (or until your policy renews)

Employee Cost Per Pay Period (semi-monthly) * how many pay period left this year

For example: James hire date was on 6/21/2022, his insurance effective date is 7/1/2022, his life insurance cost per pay period is $241.28

James would have 6 months (12 semi-month) of health insurance (July-December) $241.28*12= $2895.36- THIS IS THE TOTAL AMOUNT THAT SHOULD BE WITHHELD BY THE END OF THE YEAR

To calculate how much James owes each pay period you then divide that number($2895.36) by the number of pay periods left in the year calendar year.  This is the amount deducted per pay period and entered into ADP.  This is important if the first paycheck is not a full pay period, I would recommend starting it on the first full pay period

 

  1. Life Changes ( such as new baby)

Formula

The difference between the previous cost and new cost *how may pay period in these difference time=X

New cost * How many pay period left in this year =Y

(X+Y)/how many pay period left in this year.

For example, Austin has his baby on 4/15 , he added his baby on group health insurance , his previous group heath amount is 241.28,  his new cost is 384.92.

$384.92-241.28 =143.64 (Difference), pay period

4/15 , 5/1, 5/15, 6/1 , 6/15   this new amount 384.92 (In ADP)

143.64*4 (pay period) =574.54

384.92*12=4619.04

Total:5193.58/12=432.80    Start in 7/1- End in 1/1

The company is recouping the $574.54 over a longer period by drawing it out until December because the payroll correction was not made in April.    

When a baby is added they are added for the full month.  You will normally see the credit for the previous amount paid in April (employee + spouse) and the new family rate for April and May on May's bill.  

 

    • Related Articles

    • Reconcile Heath Insurance in spreadsheet *needs update*

      Reconcile the health insurance in spreadsheet At every beginning of month, we will receive the bill from regence for next bill coverage period. We normally do the insurance reconciliation at beginning of each month. 2. add up the two pay period ...

    • Adding a New Employee in ADP

      Adding a New Employee in ADP Table of Contents Link to Main Section 1 Link to Main Section 2 Additional Instructions Other Details Overview of the SOP - This document is intended to be used as a template that can guide future SOP creation or for ...

    • Digital Marketing Responsibilities **needs updating**

      Digital Marketing Responsibilities General Overview Advertising should be in place and ready to run before the first of the month. Double check to make sure things are set up correctly. Advertising in newsletters is organized first come, first serve. ...

    • New Hire Onboarding **Needs reviewing**

      New Hire Onboarding Table of Contents Before they Start New Hire 1st Day Schedule Training Required Paperwork Things to do to finish onboarding Overview of the SOP - To provide guidance for onboarding a newly hired employee. Resources {Heading 1} ...

    • Credit Card Reconciliation ** Needs updating**

      Credit Card reconciliation We have three Amex CC card and 2 Chase CC card Each CC card has their own due date for bank statement. You could reconcile the CC cards at the end of each month or categorize each transactions in advance when it’s ...