Corporate wellness program earnings deducted from paycheck

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A1Sauce975
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Joined: Wed Aug 23, 2017 1:15 am

Corporate wellness program earnings deducted from paycheck

Post by A1Sauce975 » Wed Oct 11, 2017 10:57 pm

First time with an employer that offers a corporate wellness program and wanting to confirm I'm understanding this correctly:

My employer advertises we can earn $500 a year through the wellness program. The more we exercise and do healthy things, the more points we get, and the more cash we are awarded at certain milestones. Now, I was under the impression this was an additional $500 a year on top of our regular salary, but it appears it may not be if I'm interpreting this correctly:

I just earned my first $30 through the wellness program, and was surprised to see the entire amount deducted from my most recent paycheck under post-tax deductions. so it was basically something like $1000 gross pay - $100 pre-tax deductions - $100 taxes - $30 post-tax deduction = $770 net pay. So, instead of seeing the usual $800 deposit to my bank, I only got $770, and have to wait for the check from the wellness program to make up for the shortage.

I was expecting to pay taxes on it, but for my company to deduct the entire $30 basically cancels out the $30 check I'll be receiving from the wellness program. Is this how it's supposed to work? If so, I don't see where the real incentive is if it basically just cancels out. I could earn $500 through the wellness program, but if they're just going to take it out of my paycheck, then what's the financial incentive to participate in my company's wellness program? Or am I just way off in my interpretation and/or this is how most wellness programs work?

Nate79
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Location: Portland, OR

Re: Corporate wellness program earnings deducted from paycheck

Post by Nate79 » Wed Oct 11, 2017 11:26 pm

Our wellness program either deposits money into our HSA or for people who don't have an HDHP plan they get the extra in their paycheck. It is truly extra money in our case.

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FIREchief
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Re: Corporate wellness program earnings deducted from paycheck

Post by FIREchief » Thu Oct 12, 2017 12:17 am

Just when I thought I had seen the worst of Megacorp....... :oops:
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.

mega317
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Re: Corporate wellness program earnings deducted from paycheck

Post by mega317 » Thu Oct 12, 2017 12:33 am

Nate79 wrote:
Wed Oct 11, 2017 11:26 pm
Our wellness program either deposits money into our HSA or for people who don't have an HDHP plan they get the extra in their paycheck. It is truly extra money in our case.
Mine was the same, this seems crazy. I would resume smoking until HR can explain it to you.

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slayed
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Re: Corporate wellness program earnings deducted from paycheck

Post by slayed » Thu Oct 12, 2017 12:45 am

It is possible that you are reading your paycheck incorrectly? Make sure you are not confusing total deduction line with current pay period line. Is it possible that the $800 check was the one where you actually got the $30 and this check is not a pay period where you get the $30 but it is listing the -30 under the total line? Just a guess for what is happening here.

Also look for an "Adjustment" line on your paystub where the wellness amount is listed with a "+" number

miamivice
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Re: Corporate wellness program earnings deducted from paycheck

Post by miamivice » Thu Oct 12, 2017 6:45 am

mega317 wrote:
Thu Oct 12, 2017 12:33 am
Nate79 wrote:
Wed Oct 11, 2017 11:26 pm
Our wellness program either deposits money into our HSA or for people who don't have an HDHP plan they get the extra in their paycheck. It is truly extra money in our case.
Mine was the same, this seems crazy. I would resume smoking until HR can explain it to you.
I wouldn't recommend resuming smoking to spite one's employer. With the myriad of health consequences of smoking, plus the expense, it makes little sense to smoke if one can help it.

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Pajamas
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Re: Corporate wellness program earnings deducted from paycheck

Post by Pajamas » Thu Oct 12, 2017 10:08 am

Sounds like there was an error made on the paycheck or you are misinterpreting it. Items like that are usually added to your income as you owe taxes on them. Seems like your paycheck should have been almost $30 more, specifically $30 less withholdings on the $30.

Pinotage
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Joined: Sat Nov 12, 2011 6:02 am

Re: Corporate wellness program earnings deducted from paycheck

Post by Pinotage » Thu Oct 12, 2017 10:12 am

miamivice wrote:
Thu Oct 12, 2017 6:45 am
mega317 wrote:
Thu Oct 12, 2017 12:33 am
Nate79 wrote:
Wed Oct 11, 2017 11:26 pm
Our wellness program either deposits money into our HSA or for people who don't have an HDHP plan they get the extra in their paycheck. It is truly extra money in our case.
Mine was the same, this seems crazy. I would resume smoking until HR can explain it to you.
I wouldn't recommend resuming smoking to spite one's employer. With the myriad of health consequences of smoking, plus the expense, it makes little sense to smoke if one can help it.

Haha yes that’s good advice.

Also, cigarettes alone would probably cost more than $30 per two week payperiod.

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