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Employees hired PRIOR to 06/28/2011 are required to pay 1.5% of base salary or the percentage of premium based on the tables. WHICHEVER IS GREATER Employees.

Published byMabel Goodman Modified over 8 years ago

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Presentation on theme: "Employees hired PRIOR to 06/28/2011 are required to pay 1.5% of base salary or the percentage of premium based on the tables. WHICHEVER IS GREATER Employees."— Presentation transcript:

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3 Employees hired PRIOR to 06/28/2011 are required to pay 1.5% of base salary or the percentage of premium based on the tables. WHICHEVER IS GREATER Employees hired AFTER 06/28/2011 go directly against the year 4 percentage of premium tables. Note: There is no change to employee’s dental benefits.

4 There are three percentage of premium charts: Single Family Employee/Partner or Parent/Child Each coverage level has a different percentage of premium that the employee would have to pay based on their base salary. Note: The percentage of premium tables can be found on the Pensions web site. The percentage increases each year in July.

5 HEALTH BENEFITS CONTRIBUTION FOR SINGLE COVERAGE (PERCENTAGE OF PREMIUM) Salary RangeYear 1Year 2Year 3Year 4 less than 20,0001.13%2.25%3.38%4.50% 20,000-24,999.991.38%2.75%4.13%5.50% 25,000-29,999.991.88%3.75%5.63%7.50% 30,000-34,999.992.50%5.00%7.50%10.00% 35,000-39,999.992.75%5.50%8.25%11.00% 40,000-44,999.993.00%6.00%9.00%12.00% 45,000-49,999.993.50%7.00%10.50%14.00% 50,000-54,999.995.00%10.00%15.00%20.00% 55,000-59,999.995.75%11.50%17.25%23.00% 60,000-64,999.996.75%13.50%20.25%27.00% 65,000-69,999.997.25%14.50%21.75%29.00% 70,000-74,999.998.00%16.00%24.00%32.00% 75,000-79,999.998.25%16.50%24.75%33.00% 80,000-94,999.998.50%17.00%25.50%34.00% 95,000 and over8.75%17.50%26.25%35.00%

6 HEALTH BENEFITS CONTRIBUTION FOR FAMILY COVERAGE (PERCENTAGE OF PREMIUM) Salary RangeYear 1Year 2Year 3Year 4 less than 25,0000.75%1.50%2.25%3.00% 25,000-29,999.991.00%2.00%3.00%4.00% 30,000-34,999.991.25%2.50%3.75%5.00% 35,000-39,999.991.50%3.00%4.50%6.00% 40,000-44,999.991.75%3.50%5.25%7.00% 45,000-49,999.992.25%4.50%6.75%9.00% 50,000-54,999.993.00%6.00%9.00%12.00% 55,000-59,999.993.50%7.00%10.50%14.00% 60,000-64,999.994.25%8.50%12.75%17.00% 65,000-69,999.994.75%9.50%14.25%19.00% 70,000-74,999.995.50%11.00%16.50%22.00% 75,000-79,999.995.75%11.50%17.25%23.00% 80,000-84,999.996.00%12.00%18.00%24.00% 85,000-89,999.996.50%13.00%19.50%26.00% 90,000-94,999.997.00%14.00%21.00%28.00% 95,000-99,999.997.25%14.50%21.75%29.00% 100,000-109,999.998.00%16.00%24.00%32.00% 110,000 and over8.75%17.50%26.25%35.00%

7 When the 1.5% of base salary method is used to determine the deduction, it includes both Health & Prescription Drug coverage’s. Note: The percentage of premium tables can be found on the Pensions web site. When the percentage of premium method is used to determine the deduction, Health Benefit & Prescription Drug coverage are separate components and must be added together if employee has both coverage's.

8 Employee Hired PRIOR to 6/28/2011 making $100,810.32 with NJDirect15 and Prescription Drug SINGLE Coverage (YEAR 1) 1.5% Method of Calculation: $100,810.32 /26.1 = $3,862.46 biweekly gross * 1.5% = $57.94 deduction for health & prescription drug. Percentage of Premium Method of Calculation: NJ Direct15 - $229.92 RX - $ 62.46 Percentage - 8.75% $229.92 x 8.75% = $20.11 $ 62.46 x 8.75% = $ 5.46 Total = $25.57 Since the percentage of premium method is less then the 1.5% method, the employees HB deduction will remain $57.94

9 Employee Hired PRIOR to 6/28/2011 making $100,810.32 with NJDirect15 and Prescription Drug FAMILY Coverage (YEAR 1) 1.5% Method of Calculation: $100,810.32 /26.1 = $3,862.46 biweekly gross * 1.5% = $57.94 deduction for health & prescription drug. Percentage of Premium Method of Calculation: NJ Direct15 - $574.82 RX - $156.16 Percentage - 8% $574.82 x 8% = $45.98 $156.16 x 8% = $12.49 Total = $58.47 Since the percentage of premium method is greater then the 1.5% method, the employees new HB deduction will be $58.47

10 Employee Hired AFTER to 6/28/2011 making $100,810.32 with NJDirect15 and Prescription Drug FAMILY Coverage (YEAR 4) 1.5% Method of Calculation: $100,810.32 /26.1 = $3,862.46 biweekly gross * 1.5% = $57.94 deduction for health & prescription drug. Percentage of Premium Method of Calculation: NJ Direct15 - $574.82 RX - $156.16 Percentage - 32% $574.82 x 32% = $183.94 $156.16 x 32% = $ 49.97 Total = $233.91 Since the percentage of premium method is greater then the 1.5% method, the employees HB deduction will be $233.91

11 Employee with a $72,500 annual salary with a domestic partner – Aetna and Prescription Drug Coverage. Premium (HB&RX)1 st Year Amount 1.5% $41.67 Single$298.80 8.00% $23.90 Member/Spouse$672.30 6.50%$43.69 Pre-TaxPost-Tax Deduction if Single Coverage$41.67 $41.67$0.00 Deduction if Member/Spouse$43.69 $41.67$2.02 ($43.69-$41.67) Imputed income is the cost of single coverage, less the difference in the amount the employee pays for picking up Member/Spouse coverage. $298.80 Single Coverage - $ 2.02 Difference ($43.69-$41.67) $296.78 = Taxable Imputed Income

12 Employee with a $72,500 annual salary with a domestic partner – Aetna and Prescription Drug Coverage. Premium (HB&RX)4th Year Amount 1.5% $ 41.67 Single$298.80 32.00% $ 95.61 Member/Spouse$672.30 26.00%$174.79 Pre-TaxPost-Tax Deduction if Single Coverage$ 95.61 $95.61$ 0.00 Deduction if Member/Spouse$174.79 $95.61$79.18 ($174.79-$95.61) Imputed income is the cost of single coverage, less the difference in the amount the employee pays for picking up Member/Spouse coverage. $298.80 Single Coverage - $ 79.18 Difference ($43.69-$41.67) $219.62 = Taxable Imputed Income

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