Plan Administrator Tip - Checking Salaries

Ensuring that employee salaries are up to date is an important component of plan administrator roles. Long-term disability benefits, short-term disability benefits, and some life insurance benefits are calculated based on earnings, so it’s important to keep this information up to date.

Important tip: check your payroll system against your insurer’s records to ensure that all employee salaries are up to date. Employers can be held liable if an employee is paid out less than they are owed in the event of a long-term disability, short-term disability, or life insurance claim.


If employees’ compensation includes commissions, significant and regular bonuses or dividend income to owners and partners, you should let your insurer know. These details are extremely important in the event of a claim.


If you have transitioned employees to a contract position, it is critical that you inform your insurance carrier as there are important conditions for including this type of relationship.


Please contact us if you have any questions or need help updating insurer systems. We always look forward to hearing from you.