How many dependents you have affects some aspects of your employment. Check these items as your family increases or decreases:
Tax Withholding from payroll is determined by the number of exemptions you claim on both federal and state forms. Your allowances will not always be the same, depending on such variables as your marital status, the number of your children and their ages, your employment, your spouse’s employment, your residence, etc. Review your withholdings periodically and update them accordingly.
Insurance Eligibility changes as your family changes. Generally you may purchase coverage for your spouse and children on the University group plan as long as they meet the definition of dependent. To qualify children must be financially dependent on you, not in service, never married, not employed full-time, under age 19, or enrolled full-time in school and under age 25. Some exceptions apply for handicapped children. Again, you need to review your dependent status periodically to ensure you are paying premiums for the correct coverage. You may change your coverage level during a plan year if your dependent loses eligibility, the pre-tax premium plan notwithstanding. It is necessary to file certain documents timely to effect such a change.
Beneficiaries may change as your family changes. You may want to add or remove dependents’ names from your various policies. In fact, when you gain or lose dependents is a good time to review your life insurance portfolio.