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Can employer legally request back-payment on health insurance?

slycat

Diamond Member
Jul 18, 2001
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Hypothetical:

Insurance goes up every year. I have been with this company for 4yrs. They deduct insurance from my paycheck every pay cycle. Now, they come back and tell me they have been deducting the same amount even though insurance rates have increased every year. Let's say they ask me to repay the difference now.

Can they make me do that?...or do i have to pay that?
 

mugs

Lifer
Apr 29, 2003
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Originally posted by: MikeyIs4Dcats
don't see how they could assuming they didn't notify you at any time of an increase in the deduction
:thumbsup:
 

slycat

Diamond Member
Jul 18, 2001
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well every year we get this package of flyers from them about how much this is, that is...how much they're paying...etc., given to every employee. That counts as notice right?
 

Reckoner

Lifer
Jun 11, 2004
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Originally posted by: slycat
well every year we get this package of flyers from them about how much this is, that is...how much they're paying...etc., given to every employee. That counts as notice right?
yep
 
Nov 5, 2001
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Originally posted by: slycat
well every year we get this package of flyers from them about how much this is, that is...how much they're paying...etc., given to every employee. That counts as notice right?

LOL

did you READ it? Did it show an increase??
 

mugs

Lifer
Apr 29, 2003
48,900
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Originally posted by: slycat
well every year we get this package of flyers from them about how much this is, that is...how much they're paying...etc., given to every employee. That counts as notice right?
Didd the amount that it said YOU were supposed to be paying match the amount that they took out of your paychecks?
 

Golgatha

Lifer
Jul 18, 2003
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Yes, but tell them you want the money back (or subtracted from what you owe) you paid in excess taxes on the money you owe them, because insurance is typically a before tax deduction. You might be able to claim the amount you owe against your taxes as a deduction next year since you overpaid. Not sure how that would work though since it is over multiple years and it would be easier to get it from them.
 

waggy

No Lifer
Dec 14, 2000
68,145
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Originally posted by: slycat
well every year we get this package of flyers from them about how much this is, that is...how much they're paying...etc., given to every employee. That counts as notice right?
yeap.

if they can prove you were givin notice im sure they would have a good case to sue you for backpay and fire you.
 

slycat

Diamond Member
Jul 18, 2001
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i never checked my paycheck but i think the insurance payments have remained the same. We had no HR so no one was looking into this, or changing anything. Its that way for everyone.
 

Reckoner

Lifer
Jun 11, 2004
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Originally posted by: slycat
i never checked my paycheck but i think the insurance payments have remained the same. We had no HR so no one was looking into this, or changing anything. Its that way for everyone.
How much in backpay are they asking for?
 

slycat

Diamond Member
Jul 18, 2001
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Originally posted by: Golgatha
Yes, but tell them you want the money back (or subtracted from what you owe) you paid in excess taxes on the money you owe them, because insurance is typically a before tax deduction. You might be able to claim the amount you owe against your taxes as a deduction next year since you overpaid. Not sure how that would work though since it is over multiple years and it would be easier to get it from them.
good point...yes i believe its before taxes so i would have been overpaying on taxes too.
 

slycat

Diamond Member
Jul 18, 2001
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Originally posted by: PaulNEPatsHow much in backpay are they asking for?


dunno..they didn't. Someone told me they have mentioned the fact that they have not recalculated insurance forever and so the costs deducted from paychecks have remained stagnant.
 

Reckoner

Lifer
Jun 11, 2004
10,851
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Originally posted by: slycat
Originally posted by: PaulNEPatsHow much in backpay are they asking for?


dunno..they didn't. Someone told me they have mentioned the fact that they have not recalculated insurance forever and so the costs deducted from paychecks have remained stagnant.


I wouldn't even worry about it until they actually ask for backpay, which I doubt they will. They'll probably just recalculate the rates from this point on.
 

slycat

Diamond Member
Jul 18, 2001
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i guess if they do..i WILL mention the fact about overpaying on tax and will ask them to factor those calculations and provide me new W2's or whatever. Is that right?
i'm retarded when it comes to taxes.
 

Tsaico

Platinum Member
Oct 21, 2000
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Sorry man, the far majority of the time, that money that goes to medical benefits is post income dollars, so when they make the deduction for you, it was as if you just wrote a check... they most likely won't need to recaculate. It never hurts in asking, but unless the medical is part of your wage (and in most of our cases it is not) then they are "matching" what your costs are, not paying you that amount that that goes to medical benefits.

If it is part of your wage, then your taxes are lower, because when you look at your w-2, medical benefits show up as part of your wage, meaning if they didn't raise your rates, your overall compensation is lower. It doesn't show on your taxes as a deduction, rather, they "paid" you more.

And as for owing back, that one is 50/50. I know plenty of places that when they realize the error is when they correct it. But the place that I work at, they will just start billing you every check for your increase (normally the deductions are once a month) until the difference is made up.
 

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