HR - Employee Setup for Summer Prepay

GENERAL DESCRIPTION:

This document outlines key data elements that must be in place for all C-basis (Academic Year) employees that need insurance coverage over the summer.

PROCESS CONSIDERATIONS:

You may click on the links below to navigate directly to a section:


PROCEDURE STEPS:

HR Impacts on Summer Prepay

Summer Prepay Policy provides guidelines for maintaining benefits eligibility over the summer.

In order to maintain benefits, the employee's C-basis (academic year) Empl Record:

  • Must have active HR Status throughout the payroll being processed
  • Must be on a Short Work Break (SBK) during the summer
  • Must be the benefit primary for the various prepay processes
Job Terminations
  • All insurances terminate at the end of that month
  • Insurances must be active for prepays
HR has a key role in maintaining benefits eligibility. Incorrect Job Data could result in:
  • Termination of Benefits
    • COBRA notification sent
    • Refunds issued
  • Denial of Services
    • Next open enrollment coverage starts January 1 of the next calendar year
  • Arrears, Benefits Billing, Missed Earnings, etc.
    • Reporting
    • Employee Subsidies

Summer Prepay Identification

HR representative should work with supervisor.
  • Determine who will be returning in the fall and needs summer prepay deductions
    • When in doubt, start with the employee
    • Follow-up with the division/department/institution for the fall semester appointment to confirm

  • Remember, the UW is considered one employer. Consider:
    • Department Transfers
    • Institution Transfers

Mass Job Update - Extend EJED Process

  • The Service Center will create a list of employees whose EJED is equal to the end of the academic year by Business Unit. This spreadsheet will be sent out in February each year and should be returned to your AG Lead in April.  Exact dates are communicated each year.
    • The Extend (Y/N) column is the only column that requires attention.
      • Please do not delete rows or columns from the spreadsheet.
      • Extend (Y/N) requires a Y if the employee needs to have their EJED extended.  The EJED will be updated to the day before the institution's new academic year begins.
      • Extend (Y/N) requires a N if the employee does not need to have their EJED extended.
 Example of Extend EJED spreadsheet
  • The Service Center will extend the EJED for employees with a "Y" value using the Mass Update Process in early May.  Exact dates are communicated each year.
    • If you become aware of an employee that needs to be extended after this process runs, the institution needs to manually update those EJEDs.

Extend Employee (Y)

Job Data examples for Extend Employee (Y)

Extend Employee (N)

Job Data Example for Extend Employee (N)
  • Best Practice - reach out to the appointing authority or the employees if you are uncertain of their intentions.
    • Employees not extended will be terminated through normal EJED processing in May.

HR Processing

After May monthly payroll (5M) processes:
  • Remaining active C-basis jobs are put on Short Work Break (SBK), which puts employees in Leave status.

  • SBK is essential for Deduction Prepay balances to disburse during the summer.

  • In August, employees with an EJED set for August will have Termination rows automatically inserted by HR batch processing.

  • After the August Monthly (8M) payroll, the Service Center will return active C-basis jobs from Short Work Break using the Mass Update Process. The Action used is RBK, Return from Short Work Break.

  • See HR - Annual Short Work Break Processing for more details.


Summer Termination Scenarios

Timely notification for employees that have no expectation to return in the fall at your institution and/or will not work a summer appointment:
  • Manually terminate appointment or if May EJED, allow EJED process to terminate appointment.
  • Work with Benefits staff to discontinue prepay deductions.
  • Remaining Deduction Prepay balances will be refunded through the prepay reconciliation process.
If employee terminates during summer period with no expectation to return in the fall, and does not have summer employment:
  • Manually return appointment from Short Work Break
  • Manually terminate appointment
    • Termination Effective Date should be the day following the day the employee has given notification.
    • For example, employee informs you on June 22, that they are resigning. The Effective Date of the termination row will be June 23.
  • Remaining Deduction Prepay balances will be refunded through the prepay reconciliation process.
Do not retroactively terminate employees back to the end of the academic year.
If employee terminates during summer period with no expectation to return in the fall, and has summer employment:
  • Manually return appointment from Short Work Break
  • Manually terminate appointment
    • If employee will not be returning in Fall but has a summer appointment, use last day of summer appointment as termination date.
  • Remaining Deduction Prepay balances will be refunded through the prepay reconciliation process.
Do not retroactively terminate employees back to the end of the academic year.


Late Notifications of Fall Appointment Scenarios

Spring employment terminated and late notification of Fall Hire ≤ 30 days
  • May be considered Termed in Error
    • Rehire in HRS using the same date as the termination
    • Action: Rehire; Reason: Termed in Error
    • Extend EJED in HRS to end of summer or appropriate end date
    • If EJED = end of summer, the employee is terminated at that time
    • Put employee on Short Work Break
  • Notify your Benefits staff to reinstate benefits (and WRS, if applicable) to reflect previous elections
Spring employment terminated and late notification of Fall Hire > 30 days
  • Notice received more than 30 days after termination date (or more than 30 days after COBRA notice) is considered a valid break in employment.
  • The employment termination date would remain as entered in HRS and the employee would not be benefits-eligible while off payroll. Insurance coverage will end per the plan contracts based on the termination of employment.
  • Benefit eligibility would be re-evaluated upon the start of future appointments. New enrollment opportunity - new benefit applications are required.

New Summer Hires with Fall Appointments

WRS-Eligible Fall Appointment
  • WRS/Benefit eligibility begin the first day of summer appointment.
  • Must enroll in benefits right away if eligible, or may lose enrollment opportunities.
Non-WRS-Eligible Fall Appointment: Looks at Breaks
  • If break between appointments ≥ 30 days, each appointment must individually meet the eligibility requirements.
  • If break between appointments < 30 days, the attributes of the two appointments can be combined to determine eligibility
Example: New employee for a fall C-basis WRS-eligible job, also working during the summer teaching a course
  • Hire into two Empl Rcds
    • Empl Record 0 should be the fall C-basis job and should be set as the Benefit Primary job.
      • Effective Date of the Hire row for this job should be the same as the summer job. Manually enter Short Work Break (SBK) and Return from Short Work Break (RBK) rows.
    • Empl Record 1 should be the summer position with the appropriate EJED.

Summer Prepay Resources

Summer Prepay Resource Landing Page:
https://uwservice.wisconsin.edu/administration/prepay
  • Calendar & Timeline with Key Dates
  • KBs - Queries for managing Summer Prepay
  • Supporting Job Aids
  • Policy
  • Summer Prepay Slides

ADDITIONAL RESOURCES

Related KBs:

Related Links: