This article is about Justworks PEO. What product am I using?
Who is eligible for benefits?
All full-time U.S.-based employees, certain owners, and any part-time U.S.-based employees working, on average, at least 30 hours of service per week are eligible for benefits.
Note: Our Member Types in Justworks Help Center article has a detailed breakdown of each member type available and information on their benefits eligibility.
When is our plan year?
Justworks’ plan year is November 1st – October 31st.
Your company will have the opportunity to change the plans made available to U.S.-based employees and/or employee contribution levels every Fall during company health insurance renewals.
All employees will go through open enrollment each Fall, following company plan selection.
If an employee switches plans during open enrollment in the Fall, the amount they've paid into their deductible for the year will carry over into their new plan's deductible and then reset on January 1st. More information on deductibles can be found here.
How are plan premiums paid?
Your company is invoiced to cover the full premiums of the plans one month in advance. Your company is then credited back as employees pay their portion of the premiums over the two pay periods in the benefit month. For example, Justworks pays the full premium for February in January, and employees are deducted for one-half of their February contribution from each of two paychecks in February.
When are new employees eligible for benefits?
In general, U.S.-based employees are eligible for benefits on the first of the month following their Justworks start date. For example, if an employee starts any day in August, their coverage will be effective September 1. However, a company may set up a 30- or 60-day waiting period which would delay the eligibility date.
New employees have 30 days to enroll in their plans. If there is a 0-day waiting period, their enrollment period will start on their date of hire. If they have a 30- or 60-day waiting period, their enrollment period will start once their waiting period is satisfied.
You may read more about Waiting Periods and enrollment timeframes in our Help Center article here.
What happens if an employee leaves mid-month?
U.S.-based employees will remain on their medical, dental, and/or vision plans until the end of the calendar month in which they are separated. Since health insurance billing takes place a month in advance, if a company has already paid fees intended to cover Justworks’ costs for the next month’s coverage, Justworks will reimburse the company.
Employees will receive a COBRA packet directly from our COBRA administrator within 14 days of the employee’s loss of coverage. You can find additional information on COBRA here to share with employees as needed.
How is my company charged for insurance?
Learn more about company insurance billing here.
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.