What to Know About Your July 31 Paycheck and Benefits Deductions
As a reminder, benefit premiums for 2026 are calculated to be deducted out of 24 pay periods, instead of 27.
Benefit premiums come out of 2 paychecks per month. On the months there are 3 paychecks, like this month, benefit premiums are not deducted from the third check.
There are two exceptions when deductions occur over 27 pay periods:
If you participate in the 403b/401k savings plan and/or are enrolled in Flexible Spending Accounts, those deductions come out of 27 pay periods.
If you are paying arrears payments from being away from work, those deductions come out of 27 pay periods.
The chart below shows what benefits are taken out of which pay checks.
| Benefit | 1st Paycheck | 2nd Paycheck | 3rd Paycheck |
| Medical and Vision | X | X | |
| Dental | X | X | |
| Short-term Disability | X | X | |
| Long-term Disability | X | X | |
| Supplemental Life | X | X | |
| Critical Illness | X | X | |
| Hospital lndemnity | X | X | |
| Accident | X | X | |
| Legal | X | X | |
| Retirement Savings | X | X | X |
| Healthcare FSA | X | X | X |
| Dependent Care FSA | X | X | X |
Your Dec. 31 paycheck will be the next paycheck that doesn't have benefit premiums deducted.
As a reminder, benefits premiums for 2026 are being calculated out of 24 (not 27) pay periods.
There are 3 paychecks this year where benefit premiums are not deducted; the first paycheck was in January.
July 31 and Dec. 31 paychecks are the second and third paychecks of 2026 where benefit premiums are not being deducted.
