Overview
This page focuses on benefits for 9-Month / Academic employees during the academic summer months of May, June, July, and August.
Benefit Deduction Options
Benefit Deductions
Throughout the year, employees will have deductions on the first and second paychecks of the month to cover their benefit premiums. Benefit premiums are not regularly taken from the third check paid in a month.
Benefit Prepays
Benefit Prepays are automatic deductions for 9-Month compensation basis employees used to pay for coverage during the academic summer months June, July, and August. Benefit Prepays are only available for 9-Month employees and are deducted from the 18 paychecks in the Academic Year. Prepays are done on both a pretax and after-tax basis.
Benefits Billing
Benefits Billing is a method of creating invoices that are sent to employees to pay for their benefit premiums for times when the employee does not have earnings, has inconsistent earnings, or does not have a sufficient prepay balance. Benefit Billing invoices are sent monthly and are only available through post-tax payments.
Additional Benefit Deductions
Additional Benefit Deductions are manual pay inputs added to an employee’s paycheck. This method preemptively takes deductions for benefit premiums before an employee’s leave to pay for benefits during the leave.
Summer Term Contracted Employment Break
“Summer Term” refers to the period of contracted leave during the academic summer months of May, June, July, and August. The Summer Term starts the day after the Academic Year ends and ends the day before the next Academic Year begins.
Workday will automatically move employees from a paid status to an unpaid status, stopping the employee’s position from being paid and pausing leave accumulation. The automatic process removes the need for employees to be put on Short Work Break for the summer months.
Eligibility
The Summer Term processing heavily relies on the Annual Work Period (AWP) and Disbursement Plan Periods (DPP). All employee’s with the “UW–Madison 9-Month” Annual Work Period will have the Summer Term applied to them. An AWP is required for all 9-Month employees.
Note: All positions at UW–Madison should have a “Madison” AWP and DPP. Other campus AWP and DPPs should not be selected to avoid employees from being under or overpaid.
Benefit Prepays
Benefit Prepays are the multiple insurance deductions from the academic month payrolls used so employees can maintain insurance coverage during the summer months.
Prepays are deducted in the months of September through May and are disbursed in the months of June through August.
Prepay Calculation
Prepay eligible benefits are totaled each check and multiplied by 33%. Pretax and post-tax benefits are totaled and deducted separately. Not all benefits divide evenly; premiums are rounded to the nearest cent.
Calculation by Number of Checks
- 24 checks per year
- 18 checks paid in Academic Year
- 6 check unpaid in Summer Term
- 6 ÷ 18 = 33%
Calculation by Number of Months
- 12 months per year
- 9 months paid
- 3 months unpaid
- 3 ÷ 9 = 33%
Prepay Disbursement
The deductions for prepay eligible benefits are added together by tax status and are then subtracted from the available prepay balance. If a balance is left in the prepay balance when the fall semester starts, the remaining balance will be refunded to the employee. If there is an insufficient prepay balance mid-summer the options to collect the benefit premiums will be evaluated based on the remaining duration of the summer.
Viewing Prepays in Workday
Employees can view prepay deductions on their payslip: 
HR Administrators can view prepay deductions by going to Pay>View Payslip: 
Payroll Administrators can view prepay deductions as well as the related calculations by going to Pay>Result Details and scrolling down to “Other”:
Benefit Prepay Eligibility
Benefit Prepays are only available for employees with a 9-Month compensation basis. Employees with other compensation bases are not eligible to have prepays taken for their benefits.
In addition to having a 9-Month compensation basis, employees must have the “UW–Madison 9-Month” Disbursement Plan Period (DPP), have earnings on the paycheck, and be enrolled in prepay-eligible benefits. Note: prepays are not regularly taken on the third check paid in a month, but can be taken in order to correct prepay balances.
Prepays do not take into account an employee’s start or end date. Employees with end dates before the summer months will still have prepays deducted. If an employee meets the benefit prepay eligibility criteria, prepays will be deducted and cannot be turned off.
Benefits Eligible for Prepay
Not all benefits are eligible to be prepaid. These benefits can and will be prepaid if the employee is enrolled.
Pre-tax benefits:
- State Group Health Insurance
- Preventative, Supplemental, and Uniform Dental Insurance
- Vision Insurance
- State Group Life Insurance
Post-tax benefits:
- State Group Life Insurance
- Individual & Family Life Insurance
- Accidental Death and Dismemberment (AD&D) Insurance
- Accident Insurance
- Income Continuation Insurance (ICI)
Benefits Ineligible for Prepay
The following benefits cannot be prepaid, even if the employee is enrolled and wants the deduction.
Pre-tax Benefits:
-
Wisconsin Retirement System (WRS)
-
Flexible Spending Accounts (FSA)
-
Health Savings Accounts (HSA)
-
Parking and Transit Accounts
Supplemental Retirement Accounts:
-
UW 403(b) Supplemental Retirement Program (SRP)
-
Wisconsin Deferred Compensation (WDC) 457(b)
-
Additional WRS Contributions
| Plan | From which paychecks are contributions taken? | When can an employee change the election amount? |
|---|---|---|
| FSA | 1st and 2nd paychecks of the summer months | During the academic year if the employee experiences a Qualifying Life Event |
| HSA | No contributions are taken during the summer months | At any time during the year |
| SRP (403b) | 1st and 2nd paychecks of the summer months | At any time during the year |
| WDC (457b) | 1st and 2nd paychecks of the summer months | At any time during the year |
Additional Benefits Deductions
Additional Benefit Deductions are manual pay inputs added to an employee’s paycheck. This method preemptively takes deductions for benefit premiums before an employee’s leave to pay for benefits during the leave.
Additional Benefit Deductions can be used for 12-Month employees or seasonal employees who will be on leave for one or more months. Employees on an unpaid leave of absence for greater than three months may be subject to paying a greater portion of some insurance premiums. Contact Madison Benefits Services for more information.
Termination of Benefits Due to Non-Payment
If there are no earnings or prepay balance to take benefit deductions from then a benefit billing statement will often be created and sent to the employee. If the employee does not complete payment through benefits billing, then their benefits will terminate due to non-payment of premium.
The contractual break in employment during the Summer Term is not considered a true leave of absence as this is an expected break that is part of the academic employee’s employment. As a result, if an employee does not pay their insurance premiums, coverage will be ended due to non-payment of premium.
If the employee’s benefits are canceled or terminated due to non-payment of premiums, then they:
-
Are not eligible for COBRA continuation coverage,
-
Are not eligible to re-enroll until the annual fall open enrollment period (coverage effective January 1 of the following year)
-
May be eligible to enroll in some benefits mid-year, only if they experience a qualifying life event
-
-
See Qualifying Life Event: Eligible Family Changes (https://hr.wisc.edu/benefits/qualifying-life-events/family-changes/)
-
-
May apply for some benefits at any time through evidence of insurability (will be approved or denied based on medical underwriting):
-
-
Income Continuation Insurance
-
-
-
State Group Life Insurance
-
-
-
Individual and Family Life Insurance
-
Note: A 9-Month employee returning to work in the fall is not a qualifying event to re-enroll in benefits as there has not been a break in employment.
Mid-Year Benefit Enrollment and Premium Changes
If an employee experiences a life event (birth, marriage, gaining/losing other coverage, etc.) mid-year:
-
Employees can make the change directly in My Insurance Benefits
-
Depending on when the life event occurs:
-
-
Prepays will be adjusted before the Summer Term
-
-
-
The difference in premiums owed will be collected through Benefits Billing
-
-
-
Premiums will be collected when the employee returns to work
-
Many benefit plans have premium changes effective either January 1, February 1, or April 1. To reconcile benefit premiums and the change in premium amounts, additional prepay deductions may be taken on the third check in the month to reconcile the prepay balance.
Impacts of Mid-Year Employment Changes and Termination
Movements between 9-Month and 12-Month Compensation Bases Mid-Year
Only 9-Month compensation basis employees are eligible for prepay. If an employee moves from a 12-Month compensation basis position to a 9-Month compensation basis position mid-year, additional prepays may be needed in the spring semester in order to have a sufficient balance to cover the summer benefit premiums.
Employees moving from 9-Month to 12-Month compensation bases will be reviewed 1-2 pay periods after the change to refund the remaining prepay balance to the employee.
Termination of Employment
Prepays will be returned on the employee’s last check or within 2 pay periods after the termination. Refunding prepays is a manual process. Employees with termination reasons of “Graduation”, “Resignation”, and “Retirement” will be reviewed for refund first, while employees with termination reasons of “Contract End” may take longer to receive a refund.
If a 9-Month employee is terminated in error before or during the summer:
-
Submit a ticket to GetHelpUW to assist in rescinding the termination
-
Extend the end date as needed
-
Do not attempt to add a leave of absence to the employee as you may have done in HRS
Communications
The following message was sent by UW Shared Services in August 2025 to all active 9-Month employees:
Subject: Benefit Prepay Insurance Deductions starting in Academic Year 2025-2026
Send Date: August 26, 2025
Audience: Employees on an Academic Year (9-month) contract
Send From: serviceoperations@uwss.wisconsin.edu - exclude employees who chose 9/12
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
This communication is being sent to employees on an Academic Year (9-month) contract being paid over 9 months.
Hello,
Starting with the 2025-2026 academic year, Benefit Prepay Deductions will be deducted from each academic paycheck to cover your insurance premiums over the summer contract break. Benefit Prepays are deducted for health, dental, vision, life, and disability insurances.
This enhancement will provide employees with predictable paychecks throughout the academic year.
This email is for information and planning purposes only. No action is required from you.
For more information, review the Benefit Prepay Deductions page (https://www.wisconsin.edu/ohrwd/benefits/benefit-prepay-deductions/) on the Universities of Wisconsin website.
Sincerely,
UW-Shared Services
UW-Shared Services provides certain centralized support for Universities of Wisconsin employees in a variety of areas, including payroll, benefits, business services, and procurement. Visit uwservice.wisconsin.edu for more information about our organization.
For enhanced security, this email does not contain clickable links.
Additional Resources
- UW System Administrative Policy 232 – Benefit Prepay Deductions and Short Work Break Benefits Eligibility
- UWSS Benefits Billing – Coverage Lapse for Non-Payment, Payment Grace Periods and Reinstatement of Coverage Provisions for Active Employees
Questions?
Contact benefits@ohr.wisc.edu.