THIS SECTION ILLISTRATES NEW HIRES UNDER CHAPTER 78. This is not applicable to new hires under Chapter 44 because their employee contributions are based on a percentage of salary.
SchoolFi calculates the healthcare deductions that are based on a percentage of premium ( NOT salary) based on the scaling option the District selects on the Personnel >>> Setup >>> Health Plans >>> Settings tab. The choices are:
Most Districts select the first option. Here is an example of how this setting calculates the deduction. The Employee contractual start date is the first day of the current school year and the employee's contractual salary is $54,000 as highlighted by the red squares below:
The employee has elected Family coverage and the Chapter 78 contribution is 12% of the plan. The District's monthly premium is $120.00. The Total Plan Cost is calculated as follows:
The employee contributions are calculated as illustrated below. Please note that the system is calculating the employee contributions based on the monthly amount that the District pays for the coverage. The system is NOT scaling the plan cost to 10 months, because as a new employee, the coverage started in September and the District did not incur an expense for the employees dental coverage until the contractual start date of the employee.
The following plan costs and employee contributions are calculated for a returning staff member, who had dental coverage in July & August (the district incurred a premium expense) and their calculations will be based on a 10-month prorated premium. The unscaled monthly premium of $120.00 is multiplied by 12 and divided by 10 to scale the premium to match the payroll term for the 10 month employee.
The Employee share takes 12% of the scaled premium (or $144.00) over the months the employee receives their contractual salary.
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