Payroll Contribution for Group Health Insurance
SPRS Agency Examples
For state agencies reporting to the Standardized Payroll/Personnel Reporting System (SPRS), the 1.0 percent is reported as a state-paid PHC deduction. When combined with the State Contribution for Insurance (STH), the total is equal to the state-matching amount for health insurance. In other words, the STH amount is reduced by the PHC amount.
If an employee is eligible to opt out of state health insurance and receives the Opt Out (STO) funds for other voluntary insurance, the PHC reduces the STO payment up to the maximum of $60.
The Payroll Health Insurance Contribution is paid using each individual employee’s funding source (Program Cost Account or index) that is used to pay the employee’s base salary. For SPRS agencies, the state or agency paid deduction is reported by employee to ERS on the Daily Contribution file.
SPRS Monthly Example
Employee is paid $4000.00 BSY once a month and $80.00 of Longevity. The state contribution for insurance for the employee for the month is $503.14.
Monthly payroll – Paid on the first
| Record type | Entitlement code | Program cost account | Identification number | Comptroller object | Amount |
|---|---|---|---|---|---|
| 520 | BSY | EE PCA | 7002 | 4000.00 | |
| 520 | LOG | EE PCA | 7022 | *80.00 | |
| 560 | PHC | EE PCA | 33273273277016 | 7042 | 40.00 |
| 560 | STH | ERS PCA | 33273273277024 | 7041 | 463.14 |
*Note: The PHC amount is not computed on the Longevity Pay.
SPRS Opt-Out Example (Where 1.0 Percent Exceeds $60.00)
Employee is paid $6500.00 BSY once a month and $120.00 in Longevity. Employee has taken advantage of Opt Out. Opt Out will be $0.
Monthly payroll – Paid on the first
| Record type | Entitlement code | Program cost account | Identification number | Comptroller object | Amount |
|---|---|---|---|---|---|
| 520 | BSY | EE PCA | 7002 | 6500.00 | |
| 520 | LOG | EE PCA | 7022 | *120.00 | |
| 560 | PHC | EE PCA | 33273273277016 | 7042 | **60.00 |
*Note: The PHC amount is not computed on the Longevity Pay.
**Note: The total for PHC does not exceed Opt Out amount.
SPRS Twice-Monthly Example
Employee is paid $2000.00 twice a month. The state contribution for insurance for the employee for the month is $503.14.
First half payroll – Paid on the 15th of the month
| Record type | Entitlement code | Program cost account | Identification number | Comptroller object | Amount |
|---|---|---|---|---|---|
| 520 | BSY | EE PCA | 7016 | 2000.00 | |
| 560 | PHC | EE PCA | 33273273277016 | 7042 | 20.00 |
| 560 | STH | ERS PCA | 33273273277024 | 7041 | 483.14 |
Second half payroll – Paid on the first of the following month
| Record type | Entitlement code | Program cost account | Identification number | Comptroller object | Amount |
|---|---|---|---|---|---|
| 520 | BSY | EE PCA | 7016 | 2000.00 | |
| 560 | PHC | EE PCA | 33273273277016 | 7042 | 20.00 |
| 560 | STH | ERS PCA | 33273273277024 | 7041 | -20.00 (Adjustment to correct for amount sent on the 15th) |