Good morning. I would like to make everyone aware of some upcoming updates that we have been working on related to payroll and benefits.
As a quick summary, we are staying with the same Medical and Dental insurance providers and overall have only minor rate changes; most are up a few percent, but some are down a few percent too. This is mainly because of the Affordable Care Act so rates are on an individual employee basis. This is great news as most of our peers are seeing 10-15% increases. The main change is that we are converting payroll from bi-weekly to twice a month starting April 1st. Lastly, we are migrating our Flexible Spending Account and Dependent Care Accounts over to Zenefits. There isn’t really any policy change, however, new cards will be issued for those which have taken advantage of this great benefit.
Below is a quick overview of each of these plans as they exist today and the new planned changes.
- Medical and dental
- Medical has two plans options via United Healthcare a POS and an HMO
- Dental has one plan option via MetLife
- Plan year runs from April 1st to March 31st every year and is coming up on renewal so open enrollment is upcoming in March for anyone who would like to make changes to their current selection
- FSA plan
- This plan is currently managed by our old payroll company PrimePay
- Open enrollment is in December and currently runs on a calendar year basis
- Managed by Paychex
- Our payroll runs on a bi-weekly basis every two weeksfor 26 total pay periods per year. This mean that twice a year, you get 3 pay checks in a single month vs the 2 pay checks each of the other ten months.
- Medical and dental
- No changes, except minor rate adjustments which we will be sending out soon.
- Open enrollment will be for a couple week period during March and we’ll be notifying you of this period soon as well. We are finalizing details now.
- FSA plan
- We are looking to move this plan to Zenefits starting April 1st.
- We are hoping for an open enrollment in a couple weeks during March, but may be limited to current enrollees only. More information to come.
- Managed by Paychex, no change
- We are moving to a twice a month paycheck cycle. This would have you getting paid on the 1st and 15th of the month. Because we are making this change mid-year, we owe you for any time earned January through March which normally would have showed up in one of those 3 paycheck months. Therefore, your April 1st check will be higher than normal due to this makeup pay and each other paycheck will be a little more too to make up for the other 3 paycheck month which would have occurred later this year. You will receive details of these changes in the coming weeks.
- Why are we making this change? It will simplify many things for both the company and us as employees; since most people and companies run off a monthly schedule. (Mortgage/rent/CreditCards/etc.) It will also allow for easier reporting/budgeting and planning.
- Please note that although your paycheck amount will change, your annual compensation will not be effected. It is just a change going from 26 paychecks per year to 24 paychecks per year. However, with that said, we should also be doing compensation reviews during March; so for those eligible, your pay may be effected for any raise you may receive. This is independent of this payroll change. Albeit the timing MAY coincide.
There is no action necessary on your part at this time. This is just an awareness email. You will get additional information regarding enrollment details for insurance and FSA plans updates in the coming weeks. Additionally, you will get an update on your specific payroll details in the coming weeks also.
If you have any questions, please feel free to contact email@example.com or talk to your manager.