Pre-collected benefits deductions
Benefits-eligible faculty members and academic professionals paid on an academic pay schedule will notice additional deductions withheld from their paychecks beginning in March and ending with the spring semester. Pre-collected benefits deductions cover summer benefits premiums for health care, life or short-term disability.
The IRS does not allow ASU to collect pre-tax benefits deductions in one tax year for use in another tax year. The university must deduct pre-collected benefits premiums for the summer in the same calendar year of coverage.
Typically, there are six pay dates with pre-collected benefits deductions during the spring. Deductions will begin on the March 8, 2024 pay date and end on the May 17, 2024 pay date. Two deductions for each benefits plan will appear on paychecks: standard benefits deductions, plus pre-collected benefits deductions. Please budget accordingly. Any unpaid pre-collected benefits deductions will be withheld from paychecks either in the summer or fall based on the following statements:
- If there is an unpaid status for summer or grant-funded job or jobs, any missed deductions will be withheld over the summer.
- If there is an unpaid status over the summer, any missed deductions will be withheld from the first and, if applicable, second paycheck or paychecks in the fall.
Faculty or academic professionals paid on a fiscal pay schedule with benefits deductions withheld over 12 months or 26 paychecks are not required to pay pre-collected benefits deductions.
You cannot opt-out of pre-collected benefits deductions if you are planning to leave ASU before or when the spring semester ends. The pre-collect process cannot be stopped for specific individuals. You will be refunded your pre-collect premiums after your separation from employment has been processed in our system.
Deductions not subject to pre-collect
Deductions for flexible spending accounts and the health savings account are not pre-collected. Upon return to paid status, annual election balances are recalculated and withheld equally from the remaining paychecks in the calendar year. Retirement contributions and long-term disability will continue to be deducted from summer pay.
Coverage changes affected by qualifying life events
If you have a change in coverage in the spring because of a qualifying life event and summer premium adjustments are needed, ASU will take additional deductions from your next paycheck. If you have overpaid for premiums, ASU will reimburse you at the end of the summer. If you have a change in coverage in the summer due to a qualifying life event, any corrections for retroactive, pre-collected benefits premium overpayments or underpayments will be adjusted in the fall.
Pay option changes
Salaried faculty and academic professionals can change their pay schedules each fiscal year. A completed pay option form must be submitted to your department’s HR representative by April 30 each year. Watch your ASU email for information from ASU benefits communications each spring.
- If you elect to change your pay schedule from academic to fiscal, ASU will refund your unused pre-collected benefits deductions during the summer.
- If you elect to change your pay schedule fiscal to academic, the missed benefits deductions from July to August will be withheld from one or two paychecks when you return to paid status.
Academic professionals and faculty on a 10-month schedule
Standard and pre-collected benefits deductions will be taken for faculty and academic professionals with contracts for more than nine months but less than 12 months while in paid status. In June through August at the end of their contracts, these employees will be placed on a short-work break with benefits but no pay. Any overpayment of benefits deductions will be refunded, if applicable.
Nonacademic positions for less than 12 months
These positions are not eligible for pre-collected benefits deductions. Staff employees working less than 12 months each year will be placed on a short-work break with benefits, but no pay. Please budget accordingly. Missed benefits deductions will be taken out of the first and, if applicable, the second paycheck when staff members return to paid status.