Recouping underpayment for health premiums from employees
cwilliams
2 Posts
Due to a comedy of errors, our firm has two employees for whom their share of health insurance premiums has not been deducted for almost 2 years. Both of these employees changed their coverage about 2 years ago, but those changes just did not make it to our payroll software. We feel terrible that this happened. Of course, our employees feel pretty terrible, too, and even have indicated their feeling that since this was our mistake, we should swallow the expense. Is there any law that prevents us from recovering these unpaid premiums from our employees? Since the amounts are substantial, we have offered to recover the expenses over 12 months. We have asked our employees several times (and this recommendation is in our employee manual) to check their payroll advice notices each payday. So, we feel the employees should have noticed this mistake long before we discovered it.
Comments
Of course, you might want to make a quick call to your carrier first. They might be unwilling to go back more than 1 year, but that has not been my experience.
Also, you have to make sure that your correcting deductions do not bring the pay so low as to break any other laws.
The employee just needs to be reminded that they can't have what they didn't pay for. It is totally implausable to me that they didn't notice the lack of deduction on their paychecks, so they are just as reponsible, if not more, as the employer for this error.
And that's the truth! x:P
3) Ask them to write you a check monthly
But consider the morale issue of this--all the remaining employees (their friends) will now know about whatever you do so, good or bad, you're on trial. My advice would be to let it go...
Due to a comedy of errors, our firm has two employees for whom their share of health insurance premiums has not been deducted for almost 2 years. Both of these employees changed their coverage about 2 years ago, but those changes just did not make it to our payroll software. We feel terrible that this happened. Of course, our employees feel pretty terrible, too, and even have indicated their feeling that since this was our mistake, we should swallow the expense. Is there any law that prevents us from recovering these unpaid premiums from our employees? Since the amounts are substantial, we have offered to recover the expenses over 12 months. We have asked our employees
several times (and this recommendation is in our employee manual) to check their payroll advice notices each payday. So, we feel the employees should have noticed this mistake long before we discovered it.
When I worked in banking, we occasionally had "mistakes" where money was put in the wrong account - people spent it and thought "Well, since you guys put it in my account, I spent it!" I'll never forget one 28 year old airman had social security checks going erroneously into his checking account. He was having himself a "high old time" every weekend on some retired colonel's social security check. He spent over $10,000 before the "colonel" realized his account was not as "flush" as he thought it should be. This boy thought we were crazy wanting him to pay back the money. The bottom line is legally he had to pay it back.
In your case, which is not nearly as blatant, the same applies. It really depends upon how you and your company feel about it - is it worth alienating two employees and causing hard feelings or...can you just change it now and go on from here?
It's really your call and your right to recroup it if you feel you must.