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Understanding catch-up payroll deductions

Understanding catch-up payroll deductions

Understanding catch-up payments

Once verified, benefits coverage for you or your dependent(s) will be backdated to your chosen effective date. You will be responsible for any unpaid premiums from that period.

To make this manageable, we will take additional deductions until your account is current. Each pay period, we will deduct your standard premium plus one additional payment toward the balance until the balance is paid off. For example, if your premium is $50 and you owe $200, we will deduct $100 for four pay cycles.

You may owe catch-up payments if:

  • You are a new hire

  • You experience a qualifying life event (birth/adoption, marriage, etc.)

  • Dependent verification was in process and is now complete

*Certain events that will be deducted as pre-tax catch-up payments are new hire, rehire, and birth/adoption.

Example 1: New Hire enrolled in coverage three weeks after hire date

  • Hire date: 3/10/2026

  • Benefits effective: 3/10/2026

  • Enrolled date: 4/3/2026

  • Enrolled: Employee Only coverage

Cost and Deduction Breakdown Table

Check Date Cost of Benefits per pay period Actual deduction per pay period
Medical Dental Vision Total Cost Per Pay Medical Dental Vision Total Deducted Per Pay
3/13/26 $143.60 $36.63 $3.03 $183.26 - - - $0
3/27/26 $143.60 $36.63 $3.03 $183.26 - - - $0
4/10/26 $143.60 $36.63 $3.03 $183.26 $287.20 $73.26 $6.06 $366.52
4/24/26 $143.60 $36.63 $3.03 $183.26 $287.20 $73.26 $6.06 $366.52
5/8/26 $143.60 $36.63 $3.03 $183.26 $143.60 $36.63 $3.03 $183.26
Total $916.30 Total $916.30

Key Points:

  • 4/10: The Employee Only cost is deducted twice to cover the current pay period plus the 3/14 check date.

  • 4/24: The Employee Only cost is deducted twice to cover the current pay period plus the 3/28 check date.

  • 5/8: The Employee Only cost is only deducted once because the payments are now caught up.

Example 2: New Hire enrolled in coverage and spouse and children need to be verified

  • Hire date: 3/3/2026

  • Benefits effective: 3/3/2026

  • Enrolled date: 3/3/2026

  • Enrolled: Employee + Family coverage

Cost and Deduction Breakdown Table

Check Date Cost of Employee + Family Benefits per pay period Actual Deduction per pay period
Medical Dental Vision Total Cost Per Pay Medical Dental Vision Total Deducted Per Pay
3/13/26 $142.02 $20.28 $10.35 $172.65 $81.15 $11.60 $6.47 $99.22
3/27/26 $142.02 $20.28 $10.35 $172.65 $202.89 $28.96 $14.23 $246.08
4/10/26 $142.02 $20.28 $10.35 $172.65 $142.02 $20.28 $10.35 $172.65
4/24/26 $142.02 $20.28 $10.35 $172.65 $142.02 $20.28 $10.35 $172.65
5/8/26 $142.02 $20.28 $10.35 $172.65 $142.02 $20.28 $10.35 $172.65
Total $863.25 Total $863.25

Key Points:

  • 3/13: The Employee Only cost is deducted because the spouse and children have not yet been verified.

  • 3/27: The spouse and children have now been verified, so the Employee + Family cost is deducted, plus the cost for the spouse and children for the prior pay period.

  • 4/10: The Employee + Family cost is deducted because the payments are now caught up.

  • 4/24: The Employee + Family cost is deducted.

  • 5/8: The Employee + Family cost is deducted.

Need additional support? Call the Iron Mountain Benefits Center at 877-907-4828, Monday - Friday, 8 am - 9 pm ET.