LAS VEGAS — Many employees make policy resets effective at the start of the new year that can affect employers’ paychecks in various ways.
January paychecks might look a little different for some as benefits deductions, PTO accruals resets, and other savings plans restart. Health-insurance premiums, health savings accounts (HSAs), and flexible spending arrangements (FSAs) typically restart on Jan. 1. Changes made during open enrollment or premium adjustments can result in higher or lower paycheck deductions.
Often, companies will reset everyone’s PTO at the beginning of the year. Employees are encouraged to review their available time off to avoid taking unpaid leave by accident. This reset can influence what PTO employers have accrued.
Other paycheck surprises to expect include changes in tax withholding based on employers’ previous year’s W-4 forms. Employer-sponsored retirement contributions, such as 401(k) or 403(b) plans, may also reset annually, altering contribution amounts and paycheck deductions.
