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Payroll Contribution for Group Health Insurance

FPP P.005

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)

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