Declined health insurance offered by HR,premiums still deducted from paystub?

Question

I started work with a firm 2 years back. At that time they offered health insurance which I declined. ( I still have that email). Inspite of that they kept deducting the premium from my paystub. Unfortunately I just realized that & send them that email in which I clearly declined health insurance. I have paid thousands in premiums & I wish to be reimbursed. Its strange, even the insurance company never sent me any paperwork on insurance card. How is that possible. How can I get my money back. Please advise.

Answer 1

Are you in CA?  If so, an employer is not allowed to deduct any type of payment from your pay without your signature authorizing them to do so for that particular deduction.  In fact, it is illegal to do so.

Contact your HR department and tell them the situation and that you are entitled to get reimbursed.  Regardless of what state you are in they cannot deny you from getting reimbursed, it's called stealing.

NHMike mentioned an important point, pre-tax.  IF your employer set up your dedected premium as a pre-tax, you would not have been taxed on the amount deducted.  If you get reimbursed it will be taxed.  I know from an employer point of view this could be a major problem and there could major penalties for amending their payroll, but I am not too sure about the consequences on your end.  I suggest you speak with your accountant if you could be penalized for any reason.

Just find out if the deductions were pre-taxed or not.  If it turns out it was not they can process a simple reimburment.

Answer 2

u mean to say that u were not even aware that money is being deducted from your salary. dont u get salary slips. and then u said u sent an e mail. are u working from home or in an office premises of your employer. what u have written is not beleivable at all. the solution now depends on you, but first clarify the country you are in. laws are different in different country and the solution also depends on that. name of company and country of company required to reply correctly

Answer 3

I am certain that you will be reimbursed..what baffles me is that you just realized this after two years..lol

Answer 4

This is possible because the payroll deductions are set-up in the payroll system while the health insurance is set up directly with the health insurance provider.  It sounds like you were never added to the health insurance plan but HR failed to remove your name from the payroll deduction.

If the deductions were pre-tax, you might have a tax issue for the last two years since your taxable income was incorrectly reduced by the payroll deduction (but you will need to consult with a tax professional).