The employee's insurance deductions occur in the month they are receiving insurance coverage.
Those on a semimonthly pay frequency will see their medical, dental, and/or vision deductions split evenly over their two regularly scheduled paychecks in any given month. For example, if both the 15th and 30th of April fall on normal business days, the first half will be deducted on their April 15th payment and the second half will be deducted on their April 30th payment.
Since employees who are paid on a biweekly pay frequency are paid twenty-six times per year, and not twenty-four, there will be certain months in which they are paid three times. In these cases, the deductions will usually be taken out of their first two paychecks of the month, unless the first payday is the first of the month.
Your commuter benefit from WageWorks will be billed on the first pay-cycle of the month. The total amount is deducted based on the plan for which you enroll. For pre-tax, your gross pay is deducted the amount of the plan and then taxes are applied to the remaining gross amount.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.