Important Benefit Deductions for Payroll Information
Benefits deductions are based on 26 pay periods per plan year. The last paycheck for 2022 benefit deductions will be the Dec. 23 paycheck. The next paycheck—Jan. 6, 2023—will have 2023 benefit deductions taken.
FAQs
Q: The first paycheck of 2023 (Jan. 6) is for the pay period Dec. 18-Dec. 31. Why are 2023 benefit deductions being taken from this check instead of 2022 benefit deductions?
A: There are two reasons:
- Benefit deductions are based on 26 pay periods, and the Dec. 23, 2022 paycheck will be the 26th paycheck for 2022 premiums. No additional 2022 benefit deductions need to be taken from employee’s paychecks.
- Earnings reported for W2 purposes are based on the date of the receipt of the earnings. Because the Jan. 6, 2023 paycheck will be counted as 2023 earnings, we must take 2023 benefit deductions from this paycheck.
Q: Why is this happening now?
A: Because of how the calendar dates fall with pay dates and pay periods, this situation is occurring this year and the next few years. This isn’t the first time this has happened; this occurred during the 2013-2014 plan years too.