Faculty Summer Insurance
Faculty members with a 9-month academic appointment (September through May) and a contract for continued employment the next academic year receive premium sharing from the University over the summer months regardless of whether or not they have a summer appointment. The faculty member, however, is responsible for paying the employee portion of the insurance premiums during the summer months (June, July, and August).
Faculty summer payment options are provided to the faculty members at the beginning of each academic year (usually August) by the Payroll Office including the Faculty Payment Options Form. A selection must be made of one of the payment options on the form and submitted to the Payroll Office, following the instructions provided, by the required deadline.
FAQs
How do I pay my summer insurance premiums?
Faculty may pay summer insurance in one of three ways:
- Spread 9 months of salary over 12 months. This assures a monthly salary even if there is no summer appointment. Your insurance payments will be deducted from the salary you receive in the summer. Please note that this option is only available to full-time faculty whose salary is paid from a single account over the 9 month period, and is not paid from a contract or grant account.
If you do not elect (or are not eligible) to spread your 9 month salary over 12 months, you have the following choices: - Pay June, July, and August insurance during the May payroll period. This option deducts 4 insurance payments from May’s paycheck thereby paying May insurance premiums, and pre-paying June, July and August.
- Pay by monthly bank draft. This option authorizes a monthly bank draft during June, July, and August from your bank account.
Please note: If insurance deductions are made from your paycheck, they are pretax. Once money reaches your bank, it is taxable; therefore, bank draft payments are not pretax.
How do I elect a summer insurance payment option?
Faculty summer payment options are provided to you at the beginning of each academic year via the Faculty Payment Options Form from the Payroll Office. You must elect one of the payment options on the form and submit it to the Payroll Office by the required deadline.
I am partially paid by a grant over the academic year and am not
eligible to spread my 9-month salary over 12-months. Why is this?
Grants are considered “soft” money and have varying beginning and ending dates that do not lend themselves to this option. This policy is consistent with other UT component institutions.
What are my choices for paying for my summer insurance if I elect
not to spread
my 9 month salary over 12 months or if I am paid from a Contract or Grant?
You have two choices as follows:
- Elect to have your summer insurance premiums all deducted from your May paycheck (paid June 1st). This means that you will have 4 months (May, June, July and August) of deductions taken from your June 1st check. Because the payments are deducted from your pay, the deductions are paid for with pre-tax dollars and does not negatively affect your taxable income.
- Elect to pay for your summer insurance premiums by having the funds automatically deducted from your checking account via a bank draft on the 7th of June, July, and August. This requires that you complete a Payroll Authorization for Auto Deduction of Summer Insurance form. Important Note: this option increases your taxable income if you are receiving summer pay.
I can’t afford to have such a large deduction come out of my June 1st pay. What should I do?
Either spread your salary over the entire twelve months (if you are eligible to do this) or choose to pay for your summer insurance premiums by having the funds automatically deducted from your checking account via a bank draft on the 7th of June, July, and August. This requires that you complete a Payroll Authorization for Auto Deduction of Summer Insurance form.
Important Note: This option will increase your taxable income (if you are receiving summer pay), since some insurance premiums are pre-tax. The better option is to set aside money each month during the 9-months to cover your summer insurance premiums, and elect to have 4 deductions taken from your June 1st paycheck.
I need help calculating the amount of money that I will need to save to make up for the large deduction out of my June 1st paycheck. Who can help me with this?
The Payroll Office will be happy to calculate the amount of your monthly deductions and the amount you need to save.
I have a summer appointment. Why can’t you take my insurance premiums from the pay I receive over the summer months?
Summer appointments vary among faculty members. Some appointments are for 1 month; some are for 2 months, etc. Many of the appointments are not made until the last moment, and the summer budget often vacillates. We are unable to monitor every faculty member’s summer appointment and enter the appropriate deductions into the payroll system for the months each faculty member was paid and bill the faculty for the months they were not paid.
Last Updated: July 24, 2007
