The Reconciliation Report helps employers compare expected premium amounts with actual premium payments for employees enrolled in AutoPay.
What is a Reconciliation Report?
A Reconciliation Report is used to review and reconcile AutoPay premium activity.
The report compares:
Expected premium amounts
Actual premium payments
Employee deductions
Reimbursement amounts
Monthly payroll and reimbursement reports can be downloaded from the portal for accounting and compliance purposes.
What information is included in the report?
The report may include:
Business unit name
Employee name
Reimbursement period
Allowance amount
Expected premium
Actual premium paid
Pre-tax deductions
Post-tax deductions
Reimbursement amounts
When do pre-tax deductions appear?
Pre-tax deductions may appear when:
The employee uses AutoPay.
The premium exceeds the employee's allowance.
The plan qualifies for off-exchange treatment.
When do post-tax deductions appear?
Post-tax deductions may appear when:
The employee uses AutoPay.
The premium exceeds the employee's allowance.
The plan is only available through the Marketplace.
If the allowance covers the full premium, no deduction appears in the paycheck. If the premium exceeds the allowance, only the difference is deducted post-tax.
Adjusting Deductions for Premium Changes
When an employee’s health plan premium changes, follow these steps to adjust payroll deductions and employer contributions:
Update both the employee’s payroll deduction and the employer’s contribution to reflect the new plan cost.
If using a payroll system like Gusto:
Take the updated Pre-Tax Deduction amount from your Take Command report.
Divide it by the number of pay periods per month to calculate the employee deduction per pay period.
Calculate the company contribution per pay period as the employee’s monthly allowance divided by the number of pay periods per month.
Update these amounts whenever the employee’s plan changes (e.g., adding a dependent) to ensure they apply to future payrolls.
Monthly Reimbursement Periods and Social Security Deductions
When premiums are deducted from Social Security:
Enter the start date as the date when Social Security first begins deducting the premium. This ensures accurate tracking and reimbursement.
Who should use this report?
The Reconciliation Report is intended for:
Payroll administrators
Finance teams
Benefits administrators
The report applies only to AutoPay participants.
Key takeaway
The Reconciliation Report helps employers reconcile expected and actual premium payments for employees using AutoPay.