How am I billed for insurance if I've signed up for insurance through Justworks?

Company billing:

We bill the company for the full cost of insurance one month prior to coverage. We will bill you on the first pay-cycle each month. 

For example, if your insurance begins April 1 and your first payroll is in the middle of the month (March 15), you will be billed the full cost of April insurance with that March 15 payroll. If your first payroll was instead at the end of month, March 31, you will be billed the full cost of April insurance with that March 31 payroll.

Employee billing:

The employee's insurance deductions occur in the month they are receiving insurance coverage. 

Those on a semimonthly pay frequency will see their medical, dental, and/or vision deductions split evenly over their two regularly scheduled paychecks in any given month. For example, if both the 15th and 30th of April fall on normal business days, the first half will be deducted on their April 15th payment and the second half will be deducted on their April 30th payment.

Since employees who are paid on a biweekly pay frequency are paid twenty-six times per year, and not twenty-four, there will be certain months in which they are paid three times. In these cases, the deductions will usually be taken out of their first two paychecks of the month, unless the first payday is the first of the month.

To summarize, the employer pays the full cost of insurance up front during the month prior to coverage and the employees contribute during the month their coverage is active.


For most companies on Justworks, premiums are billed for the month prior. For example, March premiums are charged to the company in February. Most of the time, these premiums show up on the first payroll of the month. 

Companies that are joining Justworks will be billed after employee enrollment has been completed, but before the first payroll of the month in which the coverage becomes effective. 

Terminating coverage:

In the event that an employee is terminated and their premium has already been paid, that premium will automatically be paid back to the company as a credit. If an employee is terminated on March 31, the company will receive a credit for their premium in April.


This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.
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