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Jun04

Employee handbook question

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When developing an employee handbook, what are Medical Premium Payroll Deductions, and what are some examples of this from other handbooks that have been used?

When an employer makes a deduction from an employee’s check for health insurance, that’s called a medical premium payroll deduction. The employer must have written permission from the worker, to legally make such a deduction. This normally occurs when the employee signs up for health insurance coverage. The amount of the deduction can vary widely, depending upon the cost of the insurance and the portion paid by the employer. This topic is normally not addressed in an employee handbook. If it is, the handbook may simply say, “Employee’s paychecks are subject to deductions required by law, or authorized by the employee in writing.” Because the amount of the deduction is likely to vary from year to year, it’s not wise to spell it out in the handbook.

This entry was posted on Wednesday, June 4th, 2008 at 7:50 am and is filed under
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