Payroll Services Payroll System Changes

Changes to the Payroll System for the June 2014 RG2 pay cycle:

PEBB Premium Surcharges:

Last year, the Legislature established two new premium surcharges to go into effect July 1, 2014. A monthly $25-per-account surcharge will be required in addition to your premium if you or a family member enrolled on your Public Employee’s Benefit Board (PEBB) medical coverage uses a tobacco product. A seperate monthly $50 surcharge will be required in addition to your premium if you have a spouse or domestic partner enrolled on your PEBB medical coverage, and your spouse or domestic partner has chosen not to enroll in medical coverage through his or her employer that is comparable to Uniform Medical Plan (UMP) Classic. Employees who attested to using tobacco products and/or spouse coverage will have their first deductions from their July 10 paycheck. Employees who failed to make their attestation regarding tobacco use and/or spouse coverage will also have surcharge deductions taken from their July 10 paycheck per PEBB eligibility rules. Premium surcharges are reductive which means their values are not subject to Social Security (OASI), medicare tax or federal income taxes See HRS website for additional information at this link: Surcharges or contact HRS at (509) 335-4521 or  with any questions.

The following is a brief list of items changed within the payroll system:

4 New elements were added for processing and will appear on paychecks and earnings statements:

129 Spouse Charge (Reductive)
141 Tobacco Charge (Reductive)
143 Spouse Charge (Deductive)
145 Tobacco Charge (Deductive)

The paycycle billing file from Health Care Authority was modified.
The files of payroll medical deduction activity (PAREX) was modified
The employee online maps and dumps were updated
System dictionaries and GTN tables were updated
The nightly incoming feed from HCA was modified to include surcharge dates and indicators.
Maintenance and view screens in Hepps were changed
A new file was created to retain the surcharge rates
The HCA Recon report was updated
The payment file to HCA was modified
Several Hepps reports were updated.
User testing in alpha and beta occurred
Complete test payroll was executed
Education of Payroll staff

As of July 28, we had 633 tobacco surcharges and 236 spouse coverage surcharges ready for the July 10, 2014 payday.

Please contact Payroll at (509) 335-1277 or if there are any questions.