With Summer Hiatus fast approaching, your employees may have many questions – especially around the “septuple deductions” many of them will see on their June 25 paycheck.
Below, we have compiled a list of some of the most commonly asked questions about Summer Hiatus and benefits deductions. Please feel free to share with your faculty.
⇒ What are “septuple deductions”?
As pay is temporarily stopped during Summer Hiatus, and therefore no paychecks are earned, employees pay their benefit deductions ahead of time. Because Summer Hiatus lasts for six pay periods (for the six pay periods between June 16 – September 15), employees pay for six deductions in advance, plus one deduction for the current pay period (June 1 – 15).
⇒ When are septuple deductions taken?
Benefits-eligible employees who are placed on Summer Hiatus for the full summer will see the septuple deduction taken on their June 25 paycheck.
⇒ Who will see septuple deductions?
In general, 9-month academic personnel who are placed on Summer Hiatus for the full summer (June 16 – September 15) AND who are determined to be PEBB benefits-eligible by ISC Benefits can expect to see the septuple deduction on their paycheck.
⇒ What benefit deductions are taken in the septuple deduction?
Septuple deductions include any Health Care Authority (HCA) deductions (ie, your medical deductions, plus any applicable Tobacco Surcharges or Spousal Premium Surcharges) as well as MetLife optional life insurance deductions.
⇒ Are HSA, FSA, DCAP or LTD premiums taken in the septuple deductions?
No, your Health Savings Account (HSA), medical Flexible Spending Arrangement (FSA), Dependent Care Assistance Program (DCAP) and/or optional long-term disability (LTD) contributions are NOT included in the septuple deductions, as long as you have no pay over the summer (eg, an additional job). In general, these deduction are not taken during Summer Hiatus, and will resume as normal upon return from Summer Hiatus.
Some additional considerations:
- FSA/DCAP: When you enrolled in your medical FSA and/or DCAP, you were asked to elect an annual dollar contribution amount. The ISC then considered the length of your appointment when determining your per-paycheck deduction amount. For example, if you are a 9-month faculty member, your annual contributions were divided over 18 pay periods (two pay periods for nine months). If you are a 12-month faculty member, your annual contribution amounts were divided over 24 pay periods.
- HSA: If you enrolled in HSA during Open Enrollment, you were asked to elect an annual dollar contribution amount. The ISC then considered the length of your appointment when determining you per-paycheck deduction amount. Please note, you may choose to increase, decrease or stop your HSA contributions at any time during the year. If, upon your return to work, you wish to update your HSA contributions to meet your goals, simply submit your election changes in Workday.
⇒ Will my HSA, FSA and/or DCAP deductions be taken retroactively upon my return in September?
No, HSA, FSA and DCAP deductions are not taken retroactively. These deductions will resume as normal beginning with your October 10 paycheck.
⇒ If my plans change and I end up working over the summer, what deductions will be taken?
If you had septuple deductions taken from your June 25 paycheck, your medical deductions (including any Tobacco and/or Spousal Surcharges) and your optional life insurance premium deductions will be reduced by the amount taken in advance, and your HSA, FSA, DCAP and/or LTD premiums will resume as normal.
⇒ Should I anticipate additional deductions upon return in September?
In general, all of your normal deductions will resume beginning with your October 10 paycheck. Though uncommon, in some cases employees may owe medical, dental or optional life deductions in arrears – for example, if you were placed on Summer Hiatus after the deadline and missed the septuple deduction, or you experienced a “life event” over the summer that increased or decreased your normal premium or changed your benefits eligibility. ISC Benefits will work directly with any employee for whom this is the case.
⇒ If I am working for only part of the summer, what benefits deductions will be taken?
Septuple deductions are only taken for eligible employees on Summer Hiatus for the entire summer (June 16 – September 15). For benefits-eligible faculty working only part of the summer, benefits contributions will continue as normal up until your last day of work – no longer receiving pay – and will resume as normal when you return to pay status. Any missed deductions for medical (including any Tobacco and/or Spousal Surcharges) insurance and/or optional life insurance premiums will be taken when pay resumes. However, if a faculty member is currently enrolled in a Health Savings Account or Flexible Spending Account (both health and dependent care) those premiums will be taken from any pay received throughout the course of the summer.