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What are company contribution amounts when picking plans?
Company contributions are the portion of the monthly premium that your company pays for each employee that elects coverage and any enrolled spouse/dependent(s).
What are standard contributions?
Standard contributions are when the company uses the same contribution scheme for all of the medical plans for which the company provides access. Two examples of this include:
- The company contributes 90% of the Employee only tier premium for plans A2, B3, and C3.
- The company contributes $600 to the Employee only tier premium for A2, B3, and C3.
What are custom contributions?
Custom contributions are when the company uses different contribution schemes for each of the medical plans the company provides access to. Two examples of this include:
- The company contributes 80% of the Employee only tier premium for A2 and 100% of the Employee only tier premium for C3.
- The company contributes $600 to the Employee only tier premium for A2 and $700 to the Employee only tier premium for C3.
Are custom contributions available for dental and/or vision plans?
Custom contributions are not available for dental or vision plans. You may use custom contributions for medical plans, but only standard contributions for your dental and vision plans.
How much must I contribute?
For medical and dental insurance, Justworks requires a minimum employer contribution of 50% towards the most affordable (cheapest) plan at the Employee only tier. This is the minimum amount your company can contribute to all plans you choose for your team. There is no minimum contribution requirement for vision insurance.
Do I have to contribute the same amount to all employees?
If you have different benefits classes set up, you will have the ability to set up custom contributions for different benefits classes. If your company chooses to contribute to certain groups of employees in different amounts, please note it is your company’s responsibility to ensure that any differential treatment is non-discriminatory.
Please note that if the available benefits, eligibility requirements, and employee premium costs are not the same for all eligible employees, you could put at risk the Section 125 pre-tax benefits for higher-paid employees. Your company is responsible for ensuring that your benefits class system complies with any applicable nondiscrimination requirements and, if applicable, does not negatively impact your company’s strategy for complying with the ACA employer mandate.
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.