ADMINISTERING BENEFITS

Related Policy – Paid Leave

About This Procedure

University Procedure

Human Resources and Payroll manage benefit payments, maintain compliance records, and address appeals.

Processing Payments

Authorizing Payments

1. Human Resources receives payment authorization from private plan administrator
2. Human Resources provides Payroll with: weekly benefit amount, payment schedule, duration

Calculating Benefits

1. Private plan administrator calculates weekly benefits using Minnesota formula:
   • 90% of wages up to 50% of state average weekly wage, plus
   • 66% of wages exceeding 50% but not exceeding 100% of state average weekly wage, plus
   • 55% of wages exceeding 100% of state average weekly wage
2. Maximum weekly benefit equals Minnesota state average weekly wage

Issuing Payments

1. Payroll processes benefit payments according to approved schedule (typically following regular payroll calendar)
2. Payroll issues payments for approved benefit amount
3. Payroll withholds applicable federal and state taxes
4. Payroll deducts employee health insurance premiums
5. Payroll records payments in payroll system
6. Payroll provides payment documentation to employee
7. Payroll continues deducting employee’s regular health insurance premium contribution during paid leave
8. Payroll tracks duration of benefit payments to ensure they continue for approved period and stop at appropriate time

Maintaining Compliance

Reporting Quarterly Wages

1. Human Resources coordinates with private plan administrator to ensure accurate wage reporting
2. By last day of month following each calendar quarter (April 30, July 31, October 31, January 31), wage information must be reported to DEED through Unemployment Insurance system
3. Report includes:
   • Total wages paid to each employee during quarter
   • Employee identifying information
   • Number of hours worked in Minnesota
   • Premium contributions collected
4. Private plan administrator typically handles this reporting on university’s behalf

Submitting Annual Reports

1. By November 1 each year, annual report must be submitted to DEED detailing:
   • Number of employees covered
   • Number of leave applications received, approved, and denied
   • Total benefits paid
   • Types of leave taken and average durations
   • Premium collections
   • Any other information DEED requires
2. Private plan administrator submits this report on university’s behalf

Maintaining Records

1. Human Resources maintains required records for reporting and compliance:
   • Quarterly wage reports and supporting documentation
   • Leave applications and determinations
   • Benefits payment records
   • Premium collection records
   • Employee notices and acknowledgments
   • Workplace posters
2. Records remain available for inspection and audit for at least seven years

Responding to Inquiries

1. Human Resources responds promptly to DEED inquiries, audits, or investigations
2. Human Resources coordinates with private plan administrator
3. Human Resources provides requested documentation, answers questions, and cooperates with compliance reviews

Addressing Appeals

Receiving Appeal Requests

1. Employee notifies Human Resources of intent to appeal adverse determination
2. Human Resources provides:
   • Explanation of appeal deadlines (30 days from determination date)
   • Information about appeals process
   • Contact information for plan administrator’s appeals unit
   • Assistance understanding reason for denial

Supporting Appeals

1. Employee submits appeal directly to private plan administrator
2. Human Resources assists by:
   • Providing employment records or verification
   • Confirming wage and hour information
   • Verifying employment status or work location
   • Clarifying other employment-related facts

Tracking Appeals

1. Human Resources monitors appeal status
2. Human Resources follows up with plan administrator to ensure timely resolution
3. Human Resources keeps employee informed of progress

Implementing Decisions

1. Human Resources receives appeal decision from plan administrator
2. If appeal succeeds: Human Resources coordinates benefit payments including any retroactive payments
3. If appeal fails: Human Resources explains further appeal options if available
4. Human Resources updates all relevant records

Investigating Retaliation

1. If employee alleges retaliation or discrimination related to requesting or taking paid leave, Human Resources investigates following university’s standard investigation procedures
2. Human Resources takes corrective action if warranted