Insurance taken out of 3rd payckeck this month.

[nmboone]

Hey guys, I was reading somewhere that on the 3rd paycheck for the month on a biweekly system, health insurance premiums were not taken out for some people because they were based on a 2 paycheck system. I was just wondering if this was widely varying because they were indeed taken out for my 3rd paycheck this month. I had asked my boss if they would be and she said no. Someone else said they were taken out of every paycheck.

I realize that none of you are familiar with my health insurance plan but it seems to me as if they should only be taken out of 2 paychecks a month. This means that insurance costs $150 twice a year instead of $100.

Anyway, I apologize if this is a ridiculous question but is this normal?

[kork13]

It depends on how you're paid and how much your annual premiums are. Are you paid bi-weekly? It may be a system where they charge $50 per 2 weeks (meaning your annual premiums are $1300/yr). That would be my guess, and it's simply built in to anticipate those few months a year that have 3 paydays.

[marvholly]

Yep, Kork is right - at least that is how the last 2 companies (using ADT) calculated.

[skydivingchic]

I get paid biweekly and insurance deductions are always taken out of my check, even the 3 paycheck months. A year or two ago we had a 27 paycheck year. That year deductions were not taken out of the 27th check of the year. As outlined above, our insurance premiums are totalized for the year and then divided by 26 since that is the number of checks usually issued per year. It sounds like your company is the same. It would seem unusal to me if insurance premiums were based on 12 or 24 pay periods per year, but the normal pay system was biweekly (i.e. 26 checks per year), but I suppose it is possible some companies could operate in such a manner.

[greenskeeper]

mine is based on 2 checks per month so the 3rd payday doesn't have the deductions....would be simpler as described above if it was just x divided by 26 (for biweekly pay)