Payroll Contribution for Group Health Insurance
USPS Agency Examples
For state agencies using the Uniform Statewide Payroll/Personnel System (USPS), the state paid deduction 023 tracks the PHC amount. When combined with the state match for insurance, the deduction equals the total state match for insurance.
If an employee is eligible to opt out of state health insurance and receives the Opt Out funds for other voluntary insurance, deduction 023 reduces deduction 028 up to the maximum of $60.
USPS deduction 023 funds from the Program Cost Account or index used to fund the employee’s base salary.
USPS 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
| Payment type | Program cost account | Identification number | Comptroller object | Amount |
|---|---|---|---|---|
| Base Salary | EE PCA | 7002 | 4000.00 | |
| Longevity | EE PCA | 7022 | *80.00 | |
| PHC | EE PCA | 33273273277016 | 7042 | 40.00 |
| STH | ERS PCA | 33273273277024 | 7041 | 463.14 |
*Note: The PHC amount is not computed on the Longevity Pay.
USPS 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
| Payment type | Program cost account | Identification number | Comptroller object | Amount |
|---|---|---|---|---|
| Base Salary | EE PCA | 7002 | 6500.00 | |
| Longevity | EE PCA | 7022 | *120.00 | |
| 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.
USPS 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
| Payment type | Program cost account | Identification number | Comptroller object | Amount |
|---|---|---|---|---|
| Base Salary | EE PCA | 7016 | 2000.00 | |
| PHC | EE PCA | 33273273277016 | 7042 | 20.00 |
| STH | ERS PCA | 33273273277024 | 7041 | 483.14 |
Second half payroll – Paid on the first of the following month
| Payment type | Program cost account | Identification number | Comptroller object | Amount |
|---|---|---|---|---|
| Base Salary | EE PCA | 7016 | 2000.00 | |
| PHC | EE PCA | 33273273277016 | 7042 | 20.00 |
| STH | ERS PCA | 33273273277024 | 7041 | -20.00 (Adjustment to correct for amount sent on the 15th) |