Employer Deductions

Purpose: This action will be used to establish or update the Life Insurance and Retirement deductions for the employer's cost. This form is also used to certify that all eligible employees have been offered health insurance in compliance with the Affordable Care Act.  
  • All fields are required when establishing deductions. When making an update, the only required fields are the fields that are being changed. If altering a Life Insurance or Retirement plan code, the employee must be marked eligible.
  • If the Employer Deductions are not submitted at the time the employee's new hire/rehire is processed, the life and retirement deductions will default to 'Not Eligible'.  If the employee is eligible for retirement at the time of hire, the employer deductions should be set up with the same effective date as the hire date.

  • Employers will be required to follow the rules of eligibility for benefits. OGI will determine Health, Dental and life insurance eligibility and PERSI will determine Retirement eligibility. For specific information, please contact the appropriate benefits provider.

  • Multiple agency employees – Employees who work at more than one agency (not including BSU, U of I or ISU) will need to be offered the same tier level for insurance at both agencies. If eligible for PERSI, both agencies will make the employee PERSI eligible

  • Certification of Insurance Offered Form - Agencies will be required to certify that eligible employees have been offered health insurance. Eligible employees will need to sign a Certification of Insurance Offered form that will be retained at the agency. Any individual who is completing the Employer Deduction form is acknowledging that the paper certification is on file.  
 
FILLING OUT THE FORM
 
Fields that are mandatory will have yellow font and must be completed before the document can be submitted or sent to the next reviewer/approver.
Effective Date - This is the date the Employer Deductions action is to become effective.  The effective date can be entered or selected using the calendar icon and must be equal to or greater than the employee's latest hire date.
All fields are required when establishing Employer Deductions.  Once the Employer Deductions are established, the Tier Level, Life Insurance and Retirement can be updated. 
Within each of the employer deductions, there are two separate fields. The first field includes the eligibility and the plan is found in the second field.
For detailed Health/Dental eligibility, visit the Office of Insurance Management website.
If an employee becomes ineligible for Health, Dental and Life Insurance benefits, the Life Insurance option should be changed to 'Not Eligible'. 
 
If the employee is eligible for retirement, that field can be changed from 'Not Eligible' to 'Eligible' and a new retirement plan may be selected. The retirement plan will default to the previous plan when a new plan is not selected.  Any retirement plan may be selected when an employee has not previously had a retirement plan.
 
Tier Level - select the appropriate tier level from the drop-down list.  The tier level describes the employee's scheduled work week.

Certification of Insurance Offered – Agencies will be required to certify that eligible employees have been offered health insurance. Eligible employees will need to sign a paper certification form that will be retained at the agency. Any individual who is completing the Employer Deduction form is acknowledging that the paper certification is on file.

Note: The certification must match the tier level that was selected. If the tiers do not match the user will receive an error message.

Life Eligibility - select either 'Eligible' or 'Not Eligible' from the drop-down list. Normally, in order to be eligible for life insurance, the employee must work a minimum of 20 hours per week and a total of 5 months or more during the year. (For questions regarding an employee's eligibility, contact the Office of Group Insurance.)
If the health eligibility was already marked as 'Not Eligible', the life eligibility and plan fields would already have been defaulted with 'N' (Not Eligible) and 'NE' (Employee Not Eligible).
Life Insurance Plan - This section identifies the employee's life insurance plan. To select a life insurance plan, click on the drop-down list and choose the plan.
If the employee is eligible for life insurance, a plan must be selected.
Retirement Eligibility - select either 'Eligible' or 'Not Eligible' from the drop-down list. Normally, in order to be eligible for the retirement benefits, the employee must work a minimum of 20 hours per week and a total of 5 months or more during the year or employees may also be eligible for life insurance based on their eligibility determined by Affordable Care Act. (For questions regarding an employee's eligibility, contact PERSI.)  An employee must be at least 16 years of age to be eligible for retirement benefits.

Retirement Plan - This section identifies the employee's retirement plan. To select a retirement plan, click on the drop-down list. The various retirement plans will be listed.  Please note that some of the plans are agency or employee specific.  

Dual employees (employees who work at more than one agency) who are coded as R2, must use the R2 code at all agencies they work for. If an agency tries to enter an alternate retirement code, they will receive the following error message: "Only the R2 retirement plan is valid when the employee is active at another agency with a retirement plan of R2".

Note:  These edits will be bypassed for Universities (Boise State, University of Idaho, and Idaho State).  If an agency is hiring an employee that is transferring from another state agency, they will receive a warning message instead of the error and will be allowed to hire them with a different code. 

 
Routing:
  • This document does not require an authorized signature.
  • You may route this document internally for review if necessary. Click on the 'SEND' drop down list to select the appropriate internal approver and then click the 'SEND' button.
  • To send this document directly to the Division of Statewide Payroll (DSP), click the 'SUBMIT' button. The document will be in an 'Awaiting-Release' status.