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:
What are your fees?
Fees include items such as Justworks’ administrative fees, health insurance premiums or other ancillary benefit costs. Justworks administrative fees are billed monthly, however new customers may be able to prepay for their first year of fees. Once that prepayment runs out, customers will be billed monthly.
Insurance fees include fees for:
- Medical, dental, and vision plans (if applicable)
- Short and Long Term Disability plans (if applicable)
- Life insurance plans (if applicable)
Unlike other insurance premiums, Workers’ Compensation is calculated as a percentage of applicable wages. Each invoice with employee wages will also include the appropriate Workers’ Compensation premium.
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- Refund of medical/dental/vision premiums for employees who are no longer active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
Where to find your Justworks fees
Your Justworks fees are found on our monthly consolidated billing invoice in the section marked Fees. The consolidated billing invoice will populate on the first of each month and can be viewed in the Upcoming Invoices section of the homepage. Processed invoices can be found on the main dashboard under Payments > Invoices.
When will I be billed?
Justworks will automatically populate your consolidated billing invoice on the first of each month and will be visible in Upcoming Payments on your admin home screen. This invoice will process on the fifth of each month or the closest business day following if the fifth falls on a weekend or holiday.
You can reference the table below for our standard billing schedule for each item.
|
Line Item (as applicable) |
Billing Date |
| Justworks Admin Fees | 5th of the Month |
| Health Savings Account (HSA) & Flexible Spending Account (FSA) | |
| Short-term & Long-term Disability Insurance (Employer Paid) | |
| Life Insurance | |
| Commuter Benefits | |
| Peloton | |
| Health Insurance Premiums | |
| Justworks Time Tracking Fees | |
| International Contractor Payments Usage | |
| Workers’ Compensation Insurance |
Every Payroll Invoice |
| Employer 401(k) Contributions | |
| Late Reported Payment Fee | Same Invoice as Late Payment |
How does billing for insurance work?
Employee Contributions
For employees on a semimonthly or 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 on a weekly pay frequency will see their Voluntary Short-Term and Long-Term Disability as well as their Supplemental Life Insurance deductions on the first and second paychecks of the month. Other benefit deductions such as Medical, Dental, and Vision are 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.
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.
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.