How do I process final deductions for retiring, terminating, disabled or deceased employees?
Highlight the employee name on your billing statement and place a “T” – Terminated, “R” – Retired, “D” – Disabled or “C” – Deceased, in the billing code. Reduce you current month charge by that employee’s premium, then process your payment for the new amount. Partial payment or partial month coverage cannot be accepted. If an employee retires, terminates or is deceased before a full month’s premium has been deducted, do not send the partial month deduction. This should be refunded to the employee as part of their final paycheck. Adjustments for partial payments sent in error are the responsibility of the employer unit making payroll deductions. If checks are automatically printed from the payroll system, simply void the check and reissue two manual checks, one for the employee and a check for the remaining balance, which you mail with your billing statement.
