Payroll can be complicated. At Justworks, we want to make it as simple as possible. Here are some helpful tips around how our billing works:
Where to find your Justworks fees
Your Justworks fees are included as a Fee section of your payment “invoices,” which also include the total payments going out to employees, vendors, and contractors. This Fee section is at the bottom of invoices. Invoices themselves are located on your main dashboard under "Payments” > "Invoices & Reports'" once they have been processed.
What are your fees?
Fees are made up of insurance fees as well as Justworks’ administrative fees, one-time annual fees and applicable payroll taxes. Justworks administrative fees are billed monthly, however new customers may be able to prepay for their first year of fees. Once that first year prepayment runs out, customers will be billed monthly.
Insurance fees include fees for:
- Workers’ Compensation
- Medical, dental, and vision plans (if applicable)
- Short and Long Term Disability plans (if applicable)
- Life insurance plans (if applicable)
- Employment Practices Liability Insurance (EPLI)*
- Commuter Benefits fees*
- Statutory Disability (where applicable)*
*For companies on certain Justworks plans, fees for Employment Practices Liability Insurance (EPLI), Statutory Disability, and commuter benefits will be bundled into your Justworks administrative fee.
What are credits?
In some cases, you’ll see credits from us as well on your invoice. Common credits include:
- Refund of medical/dental/vision premiums for employees who are no longer active
- If you’ve prepaid upfront as a new customer, you’ll see those reflected as prepaid credits
When will I be billed?
Please note that even if your company has every employee on the biweekly (or weekly) pay frequency, employers will still be billed on the processing days for the semimonthly frequency. Be sure to look out for 'Upcoming Payments' from your admin dashboard to see when these process.
First payroll of the month will include the following charges: Medical, Dental, Vision fees (full cost for the following month), Workers’ Comp, and 401(k).
Second payroll of the month will include: Justworks fees, Short-Term Disability, Long-Term Disability, Life Insurance / Accidental Death and Dismemberment, contributions to fitness memberships, HSA contribution, Workers’ Comp, 401(k). Your fees for Employment Practices Liability Insurance (EPLI), NY Statutory Disability, and commuter benefit fees will be bundled into your Justworks administrative fee. HSA and FSA will be a $5 “add on” for each employee that is enrolled.
For current companies on certain Justworks plans, these fees will be included on the second payroll. You can reach out to your Account Manager or our 24/7 Customer Support Team for more information. Both payrolls will include Workers’ Comp and 401(k).
If on a semimonthly pay frequency and a biweekly pay frequency, both payrolls will include Medical, Dental, Vision, 401(k) deferrals, FSA, Voluntary short and long-term disability, and Supplemental life insurance.
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.
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.
Additionally, if on a semimonthly pay frequency, the first payroll of the month will include commuter benefits; if on a weekly and biweekly pay frequency, commuter benefits will be applied on the first payroll after or on the 12th of the month.
Lastly, across all pay frequencies, the second payroll of the month will include HSA, and gym membership deductions.
How does billing for insurance work?
What is “workers’ comp minimum”?
Because unpaid owners do not receive a salary to base their workers' compensation premiums on, there is still a minimum that must be paid each month for workers’ comp. This rate varies from state to state.
Why are taxes different for each employee?
Taxes are calculated based on home and office location. Different tax rates will be applied if you have employees that live in work in different cities or states, See here to learn more about how payroll taxes are calculated.
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.