Are companies collecting arrears for medialc beneifts and so forth when the employee does not have sufficent net to sustain a deduction? How are arrears recovered?


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ajc

We have commissioned agents who often don't have enough earnings to collect deductions on their health benefits. Our system actually buckets arrears and kicks out a report (they get paid once a month); we allow 3 months of arrearages to build up and then shut them off and begin COBRA notifications. The arrearage stays in place on the system and is collected when net will cover. They're reinstated when the arrearage is cleared and they have sufficient earnings to cover deductions.