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How to Offer Benefits Through Justworks Payroll
Justworks Payroll empowers employers to offer their employees benefits directly through our platform, seamlessly integrating plans, payroll deductions, new hire enrollment, and more. You can find more details about the type of benefits your business can offer through Justworks Payroll below.
Health Insurance
Justworks Payroll can provide direct access to Small Group health insurance through the Open Market for eligible customers. Small group health insurance plans are accessible to companies smaller than a certain size — either 50 or 100 benefits-eligible employees, depending on where the company is located.*
Qualifying Justworks Payroll customers can request a quote for the following:
- Medical insurance
- Dental insurance
- Vision insurance
When a company offers health insurance through Justworks Payroll, employees’ health insurance premium deductions are automatically applied to their payroll and included on their year end tax forms. Depending on the company’s location and its policy carrier, automatic monthly payments to the carrier may also be set up.
*Want to know more? You can review this list of states eligible for Open Market health insurance through Justworks Payroll and the carriers we work with in each state.
Ancillary Benefits
In addition to health insurance, companies can offer the ancillary benefits outlined below through Justworks Payroll. Contributions for ancillary benefits offered through Justworks Payroll are automatically applied to employees’ payroll and recorded on their year end tax forms.
Flexible Spending Accounts
A Flexible Spending Account (FSA) is a benefit that allows employees to use pre-tax dollars to pay for out-of-pocket health insurance or dependent care expenses. Please note that only companies offering Medical coverage through Justworks Payroll are eligible to offer an FSA through the platform.
Employees who enroll in an FSA can elect an amount of pre-tax funds they would like to set aside for the year. This total amount is then broken up and deducted evenly from each paycheck for the remainder of the year.
The two types of FSAs available through Justworks Payroll are:
- Healthcare FSA: Typically, healthcare FSAs are used to cover medical, dental or vision expenses that an employee would otherwise pay for out-of-pocket, including co-pays and deductibles. For a full list of qualified expenses, please visit IRS Publication 502.
- Dependent Care FSA: Employees enrolled in a Dependent Care FSA can be reimbursed for the work-related cost of care for a qualifying dependent. For a full list of qualified expenses please visit IRS Publication 503.
Health Savings Account
A Health Savings Account (HSA) is a pre-tax savings account available to employees who are enrolled in a qualified High Deductible Health Plan (HDHP). Eligible employees who enroll in an HSA can make tax-free contributions to pay for health insurance costs for themselves and tax dependents both now and in the future.
Examples of qualifying expenses would include doctor and hospital visits, co-payments, eyeglasses, prescriptions, certain long-term insurance premiums, and COBRA premiums. HSA funds can also be used to pay for a covered participant’s deductible.
In contrast to FSAs, eligible employees can enroll in an HSA or update their HSA deferral amount at any time throughout the year. Additionally, HSA funds never expire, whereas FSA funds are forfeited at the end of the calendar year or when an employee is separated from the business.
Basic Life Insurance
Justworks Payroll customers can provide basic life insurance to their employees, which is life insurance that’s 100% paid for by the company and inclusive of Accidental Death & Dismemberment (AD&D) coverage.
Employers are able to choose one policy from 9 different life insurance plans when enrolling through Justworks Payroll. Once a policy is selected, all eligible employees will be automatically enrolled into the plan. The company will be able to work with the policy carrier to set up direct debits for monthly premiums.
Disability Insurance
Justworks Payroll customers have the option to provide long-term disability insurance and/or short-term disability insurance. Employers are able to offer one or the other, and will have the opportunity to choose from different coverage tiers for both types of coverage.
Currently, disability insurance policies offered through Justworks Payroll are 100% paid for by the company. The company will be able to work with the policy carrier to set up direct debits for monthly premiums.
Retirement Planning
For retirement planning, Justworks Payroll customers can offer a 401(k), which is a type of retirement savings plan sponsored by an employer that allows employees to save and invest a portion of their wages either before taxes are taken out (traditional) or after taxes (Roth).
This type of retirement plan benefit allows employees to save for their futures without needing to rely on an employer offering a pension. While not required, an employer can choose to match employee 401(k) plan contributions.
Justworks Payroll partners with Accrue to provide an integrated 401(k) plan. This means that 401(k) plan deferrals and any company matches could automatically be applied to participating employees’ paychecks and contributed directly to their 401(k) accounts.
Setting Up Health Insurance Through Justworks Payroll
To receive a health insurance quote and start selecting plans for your company, an admin with ‘Manage company benefits’ permissions can go to the Benefits on the left side menu of their Justworks Payroll account.
From there, you will need to click the ‘Browse benefits’ button on the right hand side of the page to indicate your interest in offering benefits through Justworks Payroll.
Screenshot of the 'Browse benefits' button in the Benefits tab.
Then, a ‘Continue’ button will appear on the right hand side of the page, which you will need to click to access the Benefits Center.
Screenshot showing the 'Continue' button that needs to be clicked to access the Benefits Center.
In the Benefits Center, you’ll need to click the ‘Add benefits’ button to view your company’s benefits options.
Screenshot of the 'Add benefits' button admins will need to press to view their benefit options.
On the following page, you’ll want to click the ‘Health Insurance’ tile to view more details about Medical, Dental and/or Vision coverage.
Screenshot showing the benefit options available for admins to select.
Next, you can click the ‘Get a quote’ button to request a quote for health insurance.
Screenshot showing where to click the 'Get a quote' button.
If your company is eligible for health insurance based on the location of its primary business address, you will be able to move forward with requesting a quote. If your company is not eligible to offer health insurance through Justworks, you will receive a message stating otherwise.
Before moving forward in the quote process, you will need to acknowledge that your company has at least two W-2 employees from different households who are eligible for health insurance, as this is a requirement to receive a quote as well.
Please note that this does not mean both benefits-eligible employees would need to enroll in coverage — the company just needs two employees who are eligible to enroll if they wish.
Screenshot showing the company information that needs to be confirmed before moving forward with requesting a health insurance quote.
On the next page, you’ll be prompted to provide further information about your business to receive a quote for health insurance.
These details include:
- Your company’s primary address
- Your industry SIC code
- The preferred start date for your new health insurance policies
Screenshot showing the business information that will need to be provided to receive a health insurance quote.
Next, you will need to provide your company’s census information.
Screenshot showing where to submit company census information.
In addition to employee information, you will need to enter information for any dependents your employee(s) may have.
Screenshot showing the employee dependent information that will need to be entered.
Once these details have been entered, you will be prompted to review the information before submitting it by clicking the ‘Continue’ button.
Screenshot of the business information an admin will need to review before continuing.
After clicking ‘Continue,’ you will see one of the following notifications:
- Instant Quote: If you’re able to be quoted instantly based on your company’s information, you’ll see an option to view your health insurance quote and select plans immediately by clicking a ‘Get Started’ button.
- Quote in Progress: If your company’s information requires further review, you will see a message letting you know our team is processing your quote request and the quote will be sent to you within 2-5 business days.
- Ineligible for Quote: If your company is not eligible to offer health insurance through Justworks based on its information, you will receive a message stating that we are not able to provide a quote at this time.
If your company is eligible to receive a health insurance quote, the quote will be available in the Benefits Center of your Justworks Payroll account. Wondering what this might look like? Check out the image below to see a sample quote.
Image of a sample health insurance quote that an admin could receive.
Who Is Eligible for Benefits
These are the members eligible for benefits through Justworks Payroll:
- W-2 employees working 30+ hours per week
- Paid owners
- Unpaid owners
Admins can update a member’s benefits eligibility by following these steps.
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for accounting, 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.