Contribution split by tier: where the arithmetic goes wrong.
What the employer pays and what the employee pays at each tier: employee only, employee plus spouse, employee plus children, family. Tell us whether those numbers are monthly or per paycheck and how many pay periods you run a year, because that is where the arithmetic goes wrong most often. If different groups get different contributions, salaried and hourly or by location, send each one rather than an average.
The split is how a rate becomes a paycheck deduction.
Employers rarely pay one flat share. They pay a percentage or a dollar amount that differs by tier, and the employee covers the rest. A rate increase lands differently on each tier depending on how that split is built.
The most common error is a mismatch of units: a monthly figure compared with a per-paycheck figure, or twenty-four pay periods assumed where the payroll runs twenty-six. Tell us the pay frequency and we will do the conversion once, correctly.
What we need.
Employer and Employee Share by Tier
Employee only, employee plus spouse, employee plus children and family, each with the employer amount and the employee amount.
Pay Frequency
Whether the figures are monthly or per paycheck, and how many pay periods the payroll runs in a year.
Different Groups
If salaried and hourly staff, or different locations, get different contributions, send each one rather than an average.
Why Contribution Math Goes Wrong.
Contribution math fails when units are mixed. Monthly premium, per-paycheck deduction and annual cost are not interchangeable, and the number of pay periods changes the result.
Tell us what you pay, how often and for which tiers, so we can reconcile them with the invoice.
Once reconciled, we can model changes and show employee impact.
Questions about contributions.
Can we change the split at renewal?
Often yes, within the plan’s contribution requirements and your own policy. It is one of the levers we model, because a small shift can absorb a large share of an increase.
Does the split affect more than cost?
Yes. It influences who enrolls, and affordability testing under the ACA looks at the employee-only contribution, so we check it as part of the read.
What if we pay a flat dollar amount?
Send the dollar amount per tier. A flat dollar amount shifts the burden to employees as rates rise, which is something we point out in the written read.
What if we pay a percentage?
We convert it to dollars so it can be compared.
Do pay periods matter?
Yes. Twenty-six and twenty-four pay periods give different deductions.
Can you check our math?
Yes. It is part of the review.
General information, not legal advice. Plan-specific questions belong with your counsel, and we will bring them in.
Where to go from here.
All four documents, and the two more above fifty →
Next: enrolled counts by tier →
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