Retiree health insurance

Some districts allow retirees to continue participating in the district’s health insurance plan. These retirees pay for their insurance through the district monthly or in a lump sum for many months in advance, then regular payments are made to the insurance vendor.

In SchoolInsight, this is managed by logging insurance prepayments first, then adding liabilities to a payroll register so that the retiree insurance payments are included in the vendor liabilities for that payroll.

Setting up retiree health insurance includes several steps:

1. Configure dedicated Retiree Health Insurance district payroll item(s)
2. Assign the Retiree Health Insurance item to an employee
3. Record the employee’s prepayment(s)
4. Confirm retiree health insurance payments are included in payroll

Configure dedicated district payroll item(s)

Like anything affecting payroll, Retiree Health Insurance is connected to the payroll register via payroll items. You should create one district payroll item per vendor that will be paid for retiree insurance. 

To create a retiree health insurance district payroll item:

1. 1. Go to Financials Main > Payroll > District Payroll items
   2. Create
   3. Choose a description and set the following fields:
      • Payroll Calculation Step: Pre-Tax Deductions
      • Payroll Item Type: Retiree Health Insurance
      • Algorithm: Simple Amount
      • Vendor: Pick the appropriate health insurance vendor
        
   4. The Reduce Liability Account should be one specifically reserved for tracking retiree health insurance prepayments. When an employee brings in a payment, this account will be credited. When payroll journal entries are created, this account will be debited.
   5. The Increase Liability Account should be the same account that regular employees use for their health insurance. This account will be credited upon creation of payroll journal entries and debited upon issuing the payment to the vendor.
   6. Save

Assign retiree health insurance item to employees

To configure retiree health insurance for a retiree, assign them a retiree health insurance payroll item:

1. Go to Financials Main > Payroll > Retiree Health Insurance
2. Create Payroll Item
3. Enter required information
4. Select pay periods that the retiree health insurance is billed
5. Save

Record prepayments

Once a retiree has a retiree health insurance payroll item, you can record payments they make towards their insurance. When a retiree makes a payment to the district for their health insurance:

1. Go to Financials Main > Payroll > Retiree Health Insurance
2. Select Receive Payment
3. Select the employee
4. Enter the payment details
5. Check Create Deposit or remember to deposit the receipt later
6. Save

Confirm payments on payroll

When executing a payroll in which the retiree payments are due, each employee should be automatically added to the payroll register. However, you should check the page to ensure that everyone is included.

1. Go to Financials Main > Payroll > Payroll Runs > Register
2. Select the Retiree Health Insurance tab
3. Confirm that each retiree is checked.

The total of these will then be included in the vendor liability for that payroll run. The amount paid during this payroll run will be reduced from each retiree’s current balance, which can be observed from Financials Main > Payroll > Retiree Health Insurance.