How am I billed for insurance if I've signed up for insurance through Justworks? For companies using Small Group Open Market plans, please click here.
Company billing:
We bill the company for the full cost of insurance one month prior to coverage. Justworks collects insurance premiums as part of our consolidated billing invoice that is processed on the fifth (or closest business day following) of each month.
For example, for insurance in April you will be billed the full cost of April insurance premiums on the invoice dated March 5.
For new customers onboarding, your first month’s benefit premiums will be collected the month prior to benefits going into effect and shortly after your open enrollment has been completed.
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 the event that there are 3 biweekly paydays in a given month, employees will see deductions for the first half of premiums on the first paycheck of the month and will be billed for the second half of premiums on the first paycheck after the 15th of the month.
Lastly, employees who are paid on a weekly pay frequency will see their deductions split evenly and taken from the first paycheck of the month and the first paycheck after the 15th of the month.
To summarize, the employer pays the full cost of insurance upfront during the month prior to coverage and the employees contribute during the month their coverage is active.
Terminating coverage:
In the event that an employee no longer works for the company and their premium has already been paid, that premium will automatically be paid back to the company as a credit. If an employee is separated on March 31, the company will receive a credit for their premium in April.
Disclaimer
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.