Benefit Administration Tips on Updating Salaries
An important aspect of benefits administration is ensuring that employees’ salaries are updated promptly with the insurance carriers once they are finalized. Timely updates will ensure that any salary-based benefits (Life Insurance, Accidental Death & Dismemberment, Short Term Disability and Long Term Disability) are paid according to the correct coverage. Reported earnings should be based on the definition in your contract. If the total salary is calculated based on hourly wages, the insurance carrier should be notified of both the hourly rate and the number of hours an employee works during the week.