End of Year Medical Rate Updates in Paychex

To: Business Managers and Payroll Administrators
From: Shannon Wiggins, HRMS Analyst, Office of Human Resources

It’s the time of year to update the employee medical rates in Paychex for the 2018 calendar year. To do this, Paychex will update the HRO database with the new rates and the rates will feed down to each payroll database.

When will the update take place? The rates will be updated after the last check date in 2017 and prior to the first check date in 2018. Because of the varying holiday schedules, we will update the rates in HRO on December 28.

What do I need to do regarding the last check date in 2017? Receive your files as soon as possible for the last check date in 2017. All files should be received by December 27 if at all possible.

When can I start the payroll file for 2018? You can start your payroll file for the first check date of 2018 any time after January 1. If you start the file prior to that, the new rates won’t go into effect.

How can I verify if the update took place? Before beginning the payroll file for the first check date in January 2018, using “Employee Entry,” find an employee that participates in a medical plan other than Employee Value plan and verify the new rates have been applied. If one employee’s rates have been updated, it is a good indicator that all have been updated.

IMPORTANT: Payroll Administrators should run REPT0037 “Register Prior to Processing” before sending the payroll file for each pay period to check for accuracy. During this review in January, verify that the new medical deduction amounts are reflected (see “Lay Employee Quick Guide” for new rates).

If you find that the rates were not updated, please contact Rosa Montano-Parker at rmontano-parker@archatl.com or 404-920-7486.