University of Oregon

Earnings Statement

 

Example of UO Earnings Statement

Our example is of a staff member who has medical/dental/life and retirement deductions.

Benefit Calculations Additional Benefit Information (HR website)

The following examples show the calculations for the various types of benefit coverage deductions shown on your earnings statement. When attempting to calculate the cost of your benefits, remember that PSA (Benefit Contribution) and PSS (Benefit Subsidy) are "negative deductions" or positive additions that off-set the amount deducted from your paycheck for medical, dental, vision, administrative fee, and basic life insurance costs. Currently for full-time employees the net amount of the cost to the employee is zero, as in the first two examples below.

1. Full-Time (Coverage for Employees, Spouse and Children)

Deduction Code Description Amount
PSA Contribution -531.97
PSS Subsidy -938.80
PMV Medical 1317.87
PDT Dental 110.47
PPA Admin Fee 5.80
PPD Medical Plan Commision 2.46
PPF Self-Insured Admin Fee 13.20
PVP Vision 19.97
CL1 PEBB Basic Life $5,000 1.00
Total Cost to Employee   $ 0.00

Negative Deduction Amount: -531.97 + -938.80 = -$1470.77

Actual Benefit Cost to University: 1,317.87 + 110.47 +5.80 + 2.46 + 13.20 + 19.97 + 1.00 = + $1470.77

2. Full-Time Employee (Coverage for Employee only)

Deduction Code Description Amount
PSA Contribution -387.14
PSS Subsidy -686.80
PMV Medical 962.05
PDT Dental 80.63
PPA Admin Fee 4.24
PPD Medical Plan Commision 1.80
PPF Self-Insured Admin Fee 9.64
PVP Vision 14.58
CL1 PEBB Basic Life $5,000 1.00
Total Cost to Employee   $ 0.00

Negative Deduction Amount: -387.14 + 686.80 = - $ 1073.93

Actual Benefit Cost to University: 962.05 + 80.63 + 4.24 + 1.80 + 9.64 + 14.58 + 1.00 = $ 1073.93

3. Optional Benefits

Deduction Code Description
CL2 PEBB Life up to $45K Pre tax
CL3 PEBB Life $60K-355K Post tax
L02 PEBB Spouse/Ptr Life Post tax
L03 PEBB Dependent Life Insurance
LAE PEBB AD&D Ins, Employee
LAF PEBB AD&D Ins, Empl/Family
LCE Long Term Care, Employee
LCS Long Term Care, Spouse/Ptnr
LTD PEBB Long Term Disability
LST PEBB Short Term Disability
PXM PEBB Medical Flex Spending
PXS Flex Spending/Dependent Care

The optional benefits listed above are not covered by the PEBB medical/dental plan and are an "out-of-pocket" cost to an employee. This is a partial listing of the many optional benefits available.

4. Full-Time (Medical Opt Out)

Deduction Code Description Amount
PSA Contribution -387.00
PSS Subsidy 0.00
POO Medical Plan Opt Out 154.00
PDW Dental 74.65
PPA Admin Fee .30
PPD Medical Plan Commission .13
CL1 PEBB Basic Life 1.00
CBK Cash Back Amount to Employee in Paycheck $ 156.92

In this example, the employee has another group medical coverage and has elected to "opt out" of PEBB medical coverage in order to receive "cash back" payments each month. An employee may waive medical coverage, but must be enrolled in a PEBB dental plan and basic life insurance.

For those who "opt out" of medical insurance, tje contribution amount is approximately 60% of $387.00. The medical plan opt out deduction of $154.00 reduces the actual contribution to $233.00.

5. Full-Time (Medical/Dental Opt Out)

Deduction Code Description Amount
PSA Contribution -387.00
POO Medical Plan Opt Out 154.00
POB   193.50
CBK Cash Back Amount to Employee in Paycheck $ 192.50

In this example, the employee has another group medical coverage and has elected to "opt out" of PEBB medical and dental coverage in order to receive "cash back" payments each month. An employee may waive medical coverage, but must be enrolled in a PEBB dental plan and basic life insurance.

For those who "opt out" of medical insurance, tje contribution amount is approximately 60% of $387.00. The medical plan opt out deduction of $154.00 reduces the actual contribution to $192.00.

6. Part-Time Classified Employee (with Full-Time Insurance Benefits-Family)

Deduction Code Description Amount
PSA Contribution -1455.80
PPC PEBB Cash Back Cap 0.00
PMV Medical 1,317.87
PDT Dental 110.47
PPA Admin Fee 5.80
PPD Medical Plan Commission 2.46
PPF Self-Insured Admin Fee 13.20
PVP Vision 19.97
CL1 PEBB Basic Life $5,000 1.00
CLP PEBB Paid Basic Life $20,000 4.00
Total Pre-Tax Cost to Employee   $ 114.97

In this example, the employee has opted to pay for the more expensive full-time insurance plan benefits for family. When deriving the monthly out-of-pocket insurance expense for a part-time employee, it is necessary to compute the variable contribution or PSA contribution amount which is based on hours worked and type of coverage - i.e. employee only, employee and spouse, etc.

Pro-rated Contribution Calculation: (See Contribution Chart below)

150 hrs/160 hrs X $1446.19 (full contribution amount) = -$1355.80

Out-of-Pocket Expense: The employee had $114.97 in pre-tax benefit costs over the PSA contribution amount. The amount of the out-of-pocket costs will vary for part-time employees whose hours fluctuate each month.

7. Part-Time Classified Employee (with Part-Time Insurance Benefits-Employee)

Deduction Code Description Amount
PSA Contribution -624.30
PST PT Insurance Subsidy -259.53
PMW Medical 781.53
PDL Dental 58.02
PPA Admin Fee 3.36
PPD Medical Plan Commission 1.43
PPF Self-Insured Admin Fee 7.82
CL1 PEBB Basic Live $5,000 1.00
PPC PEBB Cash Back Cap 30.67
Total Cost to Employee   $ 0.00

In this example, the part-time employee has chosen the less expensive part-time insurance plan, rather than the full-time insurance plan for himself. When deriving the monthly out-of-pocket insurance expense for a part-time classified employee, it is necessary to compute the contribution amount or PSA contribution amount which is base on hours worked and type of coverage - i.e. employee only, employee and spouse, etc.

Pro-rated Contribution Calculation: (See Contribution Chart below)

95 hrs/160 hrs X $1051.46 (full contribution amount) = - $624.30

Total Negative Deduction Amount: -$883.83 (Contribution & Subsidy )

Actual Benefit Cost to University: $ 698.04 + 55.14 + 4.53 + 1.28 + 6.98 + 1.00 + 4.00 = $ 853.16

Out-of-Pocket Expense : In the example above, there was no out-of-pocket expense. However, out-of-pocket costs will vary for part-time employees whose hours fluctuate each month.

PEBB Cash Back Cap: This is a remaining balance amount, after the benefit costs are deducted from the contribution amount. The employee is not entitled to this money and it is returned to PEBB. ($798.66 - 770.97 = $27.69)

8. Contribution Chart (for Part-Time Employees)

Type of Coverage* Employee Contribution PSA Buy Down Subsidy PST ***
PE 1051.46 259.53
PS/PP 1415.83 331.23
PB/PC/PD 1210.82 295.30
PF/PK/PL/PM 1446.19 336.1

** The "Buy Down Subsidy" only applies to those with the lower cost part-time medical plan. There is no subsidy for part-time employees who chose the full-time medical plan or chose medical opt out.. (As shown in example 5 above.)

* Type of Coverage
Deduction Code Description
PE Part-Time Employee Only
PS Part-Time Employee/Spouse
PP Part-Time Employee/Partner
PB Part-Time Emp/Both E/P Child(ren)
PC Part-Time Employee/Child(ren)
PD Part-Time Emp/Partner Child(ren)
PF Part-Time Emp/Spouse/Child(ren)
PK Part-Time Emp/Partner/Emp Child(ren)
PL Part-Time Emp/Partner/Partner Child(ren)
PM Part-Time Emp/Partner/Both E/P Child(s)

9. Imputed Value Tax for Domestic Partner Coverage

The Payroll Office adds the "imputed value" cost of the benefit coverage for a domestic partner or domestic partner's children to the employee's monthly taxable wages, and then calculates and withholds the taxes. The "imputed value" is considered a taxable fringe benefit by the Internal Revenue Service (IRS). The amount added to gross earnings is listed in the "earnings section" of your earnings statement with the code of FDP (Fringe Domestic Partner).

The example below shows the increased amount of Federal, State, Social Security, and Medicare taxes withheld when a domestic partner is covered by the employee's insurance plan. In this case, the imputed value of $664.08 consists of $618.82 full-time medical plan, $39.33 full-time dental plan, and $5.93 for vision plan.

Paycheck-Gross to Net Entries Employee Only Employee/Domestic Partner Coverage
Salary $ 3,515.39 $ 3,515.39*
FDP (Imputed Value)   +664.08
Taxable Gross Salary 3,515.39 4,179.47
Federal Tax 435.10 601.12
State Tax 244.33 283.72
Social Security 147.65 175.54
Medicare 50.97 60.60
SAIF 2.43 2.43
Other Deductions 131.65 131.65
Net Pay $ 2,503.26 $ 2,260.33*

Note: The amount withheld for Federal and State Taxes is based on requested W-4 withholding amounts. In the example above, federal and state tax withholding is based on Single with One allowance on the W-4.

* Remember with FDP, the imputed value of $664.03 is added to the taxable gross for tax withholding purposes. Use the salary amount of $2,260.33 to subtract the federal, state, social security, Medicare, SAIF and other deductions to arrive at the net pay of $2,193.48. (The $664.08 is a place holder for tax calculation, and is not part of the net pay calculation.)

Domestic Partner Taxation Issues:

  • Box 1 (Wages, tips, other compensation) of the W-2 Wage and Tax Statement at year end will now include the total of your regular wages plus the imputed value of your domestic partner benefit.
  • The amount of imputed value for the domestic partner benefit will be listed separately in another section of the W-2. (This past year it was in Box 14.)
  • Your tax bracket could be increased by the addition of this benefit to your taxable gross earnings. It all depends on your particular tax situation.
  • You may want to consider consulting with a tax consultant on how this selection will impact both your state and federal tax returns.
  • A domestic partner who meets specific IRS tax requirements may be considered a tax dependent for health purposes.

Helpful Links:

 

  • You may visit the Human Resources website for more information on the domestic partner coverage at http://hr.uoregon.edu/benefits/domestic.html.
  • Use our Net Pay Calculator to find out the actual amounts in federal, state, Medicare and social security deductions on your earnings statement when you add domestic partner benefits. If you need assistance when first using the calculator, you may contact Payroll staff at 346-3151.

 

10. Triple Deduction (For 9-Month Academic Year Employees)

Each year in May, the Payroll Office processes triple benefit deductions for benefit eligible academic year employees who are not resigning or retiring in May or June. The triple deduction process adds two extra premiums to the normal deductions in the month of May, to cover benefits for August and September. The normal deductions in June cover July benefits. The normal deduction in May covers June benefits.

The triple deduction process ensures that there is continuous coverage in the summer for this group of employees. In May, the additional out-of-pocket benefits expenses paid by employees are also tripled. Disability insurance, fixed amount of tax deferred investments, dependant day care, and medical flexible spending accounts are NOT tripled in May. These deductions are only taken in the months when employees receive pay.

Employees will also see the "TAY" deduction code, "Academic Year Triple Contribution" on the employer side of the monthly earnings statements. These contributions are collected to pay for the additional two months of benefit coverage for the summer.

In May, employees will see a triple negative amount of PSS "subsidy" and a double negative contribution on the employee side of their earnings statements.

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Last update: Sep 18th, 2015 @ 09:59:58 PDT

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