Justworks FAQs

What's an FSA?

A Flexible Spending Account (FSA) is an employee benefit that allows employees to use pre-tax dollars to pay for out-of-pocket health insurance or dependent insurance expenses. We currently offer two types of FSAs: Healthcare and Dependent Care FSAs.

With an FSA, an employee enrolls during open enrollment period and elects how much they'd like to set aside pre-tax. The total amount then gets deducted evenly from each paycheck for the remainder of the year. Employees can then use these funds for different IRS approved expenses.

How does a Healthcare FSA work?

A Healthcare FSA can cover medical, dental or vision expenses that you would otherwise pay for out-of-pocket, including co-pays and deductibles. For a full list of qualified expenses please visit IRS Publication 502.

For Healthcare FSA, there's a 2020 limit of $2,750 that you can set aside pre-tax. You can elect to participate in an FSA during open enrollment and you must select a contribution amount at that time. You cannot make any changes or opt-out of the FSA later in the year.

How does a Dependent Care FSA work?

A Dependent Care FSA can reimburse you for the work-related cost of care for a qualifying dependent. For a full list of qualified expenses please visit IRS Publication 503.

A qualifying dependent is broadly defined as:

A tax dependent of yours who is under age 13, or

Any other tax dependent of yours, such as an elderly parent, who is physically or mentally incapable of self-care and has the same principal residence as you

A spouse who is physically or mentally incapable of self-care and has the same principalresidence as you

If single, you may be reimbursed for expenses incurred due to “gainful employment”, Gainful employment usually means working or looking for work. If you are married, generally both you and your spouse must be gainfully employed work or look for work. One spouse is treated as working during any month he or she is a full-time student or is not physically or mentally able to care for himself or herself. Your work can be for others or in your own business or partnership. It can be either full time or part time.

For 2020 employees may contribute up to $5,000 per year if they are married and filing a joint return, head of household, or if they are a single parent. If you are married and filing separately, you may contribute up to $2,500 per year per parent.

How do FSAs work with Justworks?

The first step in setting up an FSA with Justworks is for the admin of the company to elect to set it up. They can do this by enrolling through the app under the Benefits section. From Benefits, navigate to "Offer more benefits" and select FSA. We'll then ask for your company name, email, and effective date. Please be aware that the start of an FSA must always be the first of the month).

Justworks will then reach out to all eligible employees notifying them of the new benefits and of their open enrollment period. Employees can only sign up during the open enrollment period.

How much does offering an FSA cost?

For companies that started with Justworks on or after July 1, 2019, FSA will be a $5 “add on” per enrolled employee per month. For current companies that started with Justworks prior to July 1, 2019, please reach out to your Account Manager or our 24/7 Customer Support Team if you have any questions about your current FSA fee.

This fee must be employer paid and is flat regardless of whether the employee uses one or both types of FSAs.

When can a company start offering an FSA?

All FSAs must start on the first of a month. A company can elect to offer an FSA at any point but must notify Justworks by the 15th of the month before the effective date of the FSA. Like health insurance, FSAs have an open enrollment period, which must close by the 22nd of the previous month. So for example, if a Company would like to set up an FSA for March 1st, their FSA open enrollment would close on February 22nd.

During what dates is the FSA effective?

All Justworks HSA/FSA plans run on a calendar year, beginning on January 1st and ending on December 31st. If you sign up for a plan mid-year, you can therefore submit claims for bills incurred from your effective date through December 31. The effective date is designated by the company and must always be the 1st of the month. All plans end on December 31st regardless of when they started.

Do the FSA funds rollover?

No, funds do not rollover with your FSA through Justworks and BenefitWallet. Unused funds on December 31st will be forfeited. However, employees have until March 31st to submit a claim for expenses incurred prior to December 31st.

Can a company offer FSAs to employees who don't qualify for health insurance (such as part-time employees working under 30 hours)?

No, part-time employees working less than 30 hours per week are not eligible for FSAs.

Can an owner participate in an FSA?

As a business owner, the IRS states you can’t contribute to an FSA plan if you own 2\% or more of the company and are an LLC, PC, sole proprietor, partner, or have a schedule S corporation. If you own a C-corporation, however, you may participate in an FSA plan because the IRS considers you a W-2 common law employee.

When do FSA funds expire?

All FSA funds expire on December 31st. Justworks' FSA runs on a calendar year (1/1 - 12/31), regardless of when you or your company join.

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.

With the Payroll Report, Justworks administrators with Make Payments & View Invoices and Reporting permissions can pull useful data such as member net pay, total cost per member, and total employer-paid taxes from their Justworks account.

There's also a Detailed version of the report that lets admins dive into more granular details, such as state or local-specific tax information and other federal tax information.

You can find the Payroll Report in the “Reports” tab in Justworks.

Once you click into the report, the date range will default to year-to-date, but you can easily adjust the start and end dates.

You will be able to select filters such as member status, department, and office.

You can also search by keyword, which is especially helpful when trying to look for information that might not be covered by the above filters, such as a specific role.

Once you've entered the filters and/or keywords you wish to pull, be sure to hit the blue 'Apply' button towards the top of the page.

The following fields will be reflected on the ‘Overview’ report:

Field

Description

Work ID

A unique ID assigned to each employee and contractor. The Work ID field can be used to link across multiple reports.

Department

An employee or contractor's current department listed in their Justworks profile. This field does not pull a historical record of the worker's assigned department, but will pull from the worker’s current department whenever the report is run.

Office

An employee or contractor's current office location listed in their Justworks' profile. This field does not pull a historical record of the worker's assigned office location, but will pull from the worker’s current office location whenever the report is run.

Gross Earnings

All taxable wages (salary, bonuses, commissions, etc.) paid to a member in Justworks and the taxable value of all fringe benefits (gym membership, CitiBike, life insurance, etc.) recorded in Justworks.

Total contractor and non-taxable payments

All non-taxable payments made to an employee or contractor in Justworks including owner’s draws, reimbursements and non-taxable payments. Note: contractor pay and owner’s draws are separated out into their own column in the detailed report.

Total Member Paid Taxes

All federal, state, and local payroll taxes deducted from the member’s applicable payments in Justworks.

Total Member Paid Deductions

All benefit contributions deducted from the member's applicable payments in Justworks including medical, deduction, and vision insurance contributions, 401(k) contributions, FSA and HSA contributions, and any ancillary benefit contributions.

Member Net Pay

A member's gross earnings minus employee paid taxes and deductions.

Total Member Paid Taxes

All federal, state, and local payroll taxes paid by the employer.

Total Employer- Paid Contributions and Fees

All of the contributions the employer made towards the employee’s benefits (such as employer medical, dental, and vision premiums, 401(k) matching, HSA contributions), workers' compensation, and Justworks fees.

Total Cost Per Member

The total cost per worker will be the sum of their gross earnings, employer-paid taxes, and employer-paid contributions and fees.

You can download a .CSV version of the Overview Report at the top of the page.

This downloadable version also includes totals by department for each field at the bottom of the report. The date range and filters you select will apply to the .CSV version of the report in addition to the report you can view in Justworks.

Detailed Report

As mentioned, administrators can also pull a detailed version of the report as a .CSV from the top of the Payroll Report page.

The Detailed Report provides a more granular breakdown of payment details by payee, including:

Supplemental payments by type (bonus, commission, severance, etc.)

Employee and employer paid local, state, and federal payroll taxes (Social Security, Medicare, Federal Income Tax, Unemployment Insurance by State, etc.)

Employee and employer paid contributions (medical, dental, vision, gym, etc.)

When you download the Detailed Report you’ll also find totals by department, and the grand total for each field at the bottom of the report.

A few helpful tips to keep in mind when reviewing the Detailed Payroll Report:

Every field in the Overview Report is included in the Detailed Report, with the granular details of that field appearing to the left. For example, to the left of Gross Earnings will be all the types of taxable payments the employee received during the time frame you selected. If you are looking at a year-to-date timeframe and your employee received a salary, bonus, company-paid membership to Citi Bike, or life insurance in that year, the amount of each of those will display to the left with the sum total of the payment amounts in the Gross Earnings column. To the right of the Gross Earnings Columns, fields such as Owner’s Draws help make up Total Non-Taxable Payments.

There are two columns for each of the medical, dental, and vision premiums in the employer contributions and fees section of the Detailed Report. The first column, which includes “Full Premium” in the header, represents the entire premium (employer + employee contribution) amount for the given employee’s plan. This is because Justworks debits the employer one month in advance for the total amount of all medical, dental, and vision premiums. The employee’s contribution, if any, is deducted during the month of coverage and “rebated” to the employer in that effective month. For example, if you pull a report from January 1-January 31st, the “Full Premium” column will pull in the full premium amount for February, which will match your invoice. The second column, which includes “Contribution” in the header, represents the full premium amount minus the employee’s contribution to that premium amount for the timeframe you’ve selected.

Perks and Fringe Benefits: When employers contribute to perks, such as ClassPass and Town Sports International, the amount of the employer’s contribution will be added to an employee’s gross earnings. Even though the employee did not receive the employer’s contributions in cash, they received that value of the employer’s contribution by receiving the perk. The value of the perk is considered taxable. The employer’s contribution will be listed under the Employer section for Perks, since the employer provided something of that value to their employee. As such, that cost will be included in the Total Cost of Worker for the company. Fringe benefits are treated similarly because even if employees do not receive cash through Justworks, they are receiving the fringe benefit and the value is added to their gross earnings, which will also be included in the Total Cost of Worker.

Nobody ever said running a business was a walk in the park. As an employer, you have a lot of balls in the air, and compliance is just one of them. One really, really important one that, if dropped, could cost you a whole lot of money.

In addition to federal regulations, each state has their own share of employment laws that business owners need to be aware of. Here, we’re highlighting some of these key state-specific requirements and laws, and offering guidance to help you keep up.

Bear in mind, this list is not comprehensive, and there may be local or industry-specific employment requirements that your business needs to comply with. It’s best to consult with counsel to ensure compliance with all applicable laws, as Justworks does not provide legal advice.

Onboarding Requirements for New Hires

In the state of New York, employers are required to satisfy the requirements of the Wage Theft Prevention Act (WTPA) via the presentation of wage notices, templates for which are available for download in Justworks administrators’ Document Centers.

Wage Theft Prevention Act (WTPA)

New York Paid Family Leave

The New York Paid Family Leave program (NYPFL) provides many employees paid family leave to help balance caring for their loved ones and protecting their economic security. This law covers a lot of ground, so here are a few resources to help you understand the ins and outs:

NYPFL Employer Guide

NYPFL Costs and Policies

Justworks Webinar on NYPFL (approx. 33 minutes)

Payroll Tax Accounts

Because Justworks reports New York State unemployment taxes on your behalf, you’ll need to close your New York State Unemployment and Withholding accounts prior to joining our platform. Here are the steps to do that.

New York - State Unemployment Insurance

Statutory Disability

Statutory Disability insurance provides case benefit of income lost due to an off-the-job disabling injury or illness.

Statutory Disability

Paid Sick Leave

Certain employers in New York City and Westchester County, including all private and most nonprofit employers, must provide sick leave for their employees and are required to distribute a Notice of Employee Rights to their employees.

New York City Paid Safe and Sick Leave Law

Westchester County, NY Earned Sick Leave Law

Reminder: as of May 15, 2018, NYC policies must be “safe time” compliant:

NYC Employers: Updates Required to Paid Sick Leave Policy

Pay Requirements

New York employers can find the most up-to-date minimum wage requirements from the New York State Department of Labor.The minimum wage is based on where an employee performs work. Workers must be paid the minimum wage rate for their work location regardless of where the main office of their employer is located.

Also, learn about the state's annual increases to the salary threshold for exempt executive and administrative employees: Salary Threshold for New York State.

Termination

New York employers should familiarize themselves with specific compliance issues and certain key documents for terminating employees.

Terminating an Employee in New York

In New York, the final paycheck must be issued on the next regularly scheduled payday.

Department of Labor: Final Paycheck

In the absence of a forfeiture clause, accrued and unused vacation must be paid to employees upon termination.

Department of Labor: Accrued and Unused Vacation

Pay Parity

Additionally, find guidance on pay equity for employers in New York state from the Department of Labor.

Guidance on Pay Equity

Sexual Harassment Prevention

New York State requires that every employer adopt a sexual harassment prevention policy that includes a complaint form for employees to report alleged incidents of sexual harassment. A model policy and complaint form is available to employers for implementation. If an employer does not adopt the model policy it must ensure that their policy meets or exceeds certain minimum standards.

Every employer in New York State is required to provide employees with sexual harassment prevention training to all employees annually, starting on Oct. 9, 2018. An employer that does not use the model training developed by the Department of Labor and Division of Human Rights must ensure that the training that they use meets or exceeds the certain minimum standards.

Justworks customers have free access to a suite of trainings through our partnership with EVERFI, the offerings of which meet or exceed New York State and New York City minimum standards.

Additional information: Administering sexual harassment prevention training on Justworks

Commuter Benefits (New York City)

New York City's Commuter Benefits Law requires for-profit and nonprofit employers with 20 or more full-timenon-union employees in New York City must offer their full-time employees the opportunity to use pre-taxincometo pay for their commute.

NYC Consumer Affairs - Commuter Benefits Law

Justworks customers can easily administer commuter benefits via our integrated partnership with WageWorks.

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.

What is a Benefits Overview?

The Benefits Overview tool will allow you to share your company’s benefits offerings with a prospective hire. The tool will present plans, pricing, and basic explanations of the benefits you offer to help candidates make the decision to work for your company.

How do I use it?

Go to “Company” “Benefits Overview”, and click on “Create an overview.” You will then be able to choose what type of prospective hire you are considering, select their potential benefits class, and add any additional notes to be included in the overview.

After the overview is created, you will see the overview box with the title you chose in the main page. From there, you can preview the page, copy the link, or delete the overview.

Will the overview get updated if I make changes to my benefits offering?

The overview will not automatically be updated to reflect changes to your benefits offering. You will have to create a new overview to reflect any changes to the benefits you chose to offer.

Distributing the overview:

As a link

The overview can be sent as a link that the prospective hire can use to view the overview.

A unique link is created for each overview and the link can be used to share the overview with multiple prospective hires.

The link will be viewable for as long as the overview is active. Something to keep in mind is that the link you distribute to prospects cannot be retracted. That is to say, anyone who has the link will be able to view the benefits overview for as long as the overview is active.

As a printout

Although the overview is best viewed as a .pdf or in a browser, you can also print for distribution.

Please note, the overview will print best if printed using Google Chrome.

Will the overviews ever expire?

The overviews will never expire once created. However, please keep in mind that the information in the overviews will NOT be updated to reflect any changes you make. For example, if you make changes to your company MDV contributions during a renewals season, the overviews created prior to those changes will continue to display amounts from the previous plan year.

Deleting an overview

If you delete an overview, you cannot recover it. The overview will be deleted from your account, and the link that was used to access the overview will become inactive.

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.

Talkspace is an online therapy service that connects users to a dedicated, licensed therapist in their state of residence via private messaging or live video. Users can regularly message their dedicated therapist via text, voice or video as life happens - anywhere, anytime. Employees can reach their therapists 5 days a week and will hear back daily. Founded with the mission to eliminate the stigma associated with mental health and make therapy available to all, Talkspace has a network of thousands of credentialed clinicians and has been used by over one million people.

Note: This partnership is currently in beta from February 4, 2020 to August 1st. While we would love to include everyone in the beta there is limited space and participating companies have been chosen at random. If you would like to be considered for participation in this beta or other betas in the future please reach out to us at [email protected].

Why Talkspace?

Talkspace links members with local licensed professionals anytime and anywhere.

Through Justworks and Talkspace your employees will have access to:

Therapy on their schedule:Employees can write a dedicated therapist at any time and get the help they need. Employees can reach a therapist 5 days a week and will hear back daily.

Always flexible and confidential:Therapists are reachable through unlimited text, voice, and video messages, all done via an easy-to-use and HIPAA-compliant app.

Easy Matching:Employees get matched with a therapist by filling out the Talkspace QuickMatch questionnaire and find a therapist that best fits your needs.

High-quality and certified providers:Talkspace has thousands of licensed therapists, fluent in over 30 languages.

What does the plan include?

Participating in the beta will give member employees access to a 3 month membership to Talkspace at no cost. Talkspace offers online, unlimited asynchronous mental health messaging therapy (text, video, audio) offered as an equivalent alternative to traditional face to face therapy with a dedicated therapist. Members are matched with their therapists through a proprietary algorithm that accounts for the member’s needs and the therapist’s areas of expertise. The membership also includes a live “Intro Video Session” (up to 10 min) to help members get to know their therapist. The 3 month membership can be used and stopped at any point. If a member uses the Talkspace service for a month and then stops service, the membership will pause and can be picked back up at any point during the year for the remaining 2 months of membership.

Why a 3 month subscription plan for the beta?

Research shows that users experience clinically measurable outcomes after 2 months of use.* As part of our beta, we wanted to start by offering a 3 month subscription to Talkspace to give customers time to experience the service and evaluate whether they feel it’s a helpful service for them. If you’d like to continue after 3 months, you can work with your therapist to roll onto a personal plan. You can find the rates for a personal plan here.

What does this cost?

Nothing! Justworks will completely cover the cost of the 3 month Talkspace subscription plan, valued at over $800 per employee. at any point in 2020, you can start the 3 month beta, and you will be covered.

If an employee wishes to extend their membership past the 3 months for the year they will be able to do so outside of Justworks. They can reach out to [email protected] to learn more about Talkspace subscription plans, discounts and financial aid.You can find the rates for a personal plan here.

What employees are eligible for Talkspace?

Talkspace is available to benefits eligible Justworks members who are enrolled in a health plan through Justworks, 18+, and working for a company that is participating in the beta. The platform requires users to indicate their age and will provide an automated message and alternative resources if the user is ineligible. Talkspace should not be considered for meeting requirements for employment, school enrollment, disability, or legal documentation.

Betas @ Justworks

What’s a beta?

We’re constantly working to build new features and work with new benefit providers that can help make our customers’ lives easier. As part of that process, we frequently run betas** (or tests) with a small group of customers as a way to gather customer feedback and determine whether a new provider is the right fit before rolling it out to everyone on Justworks.

But we’ll need your help.. To make sure this beta is working, we’ll be reaching out over the next few months for feedback to better understand how Talkspace is working for you and your team.

**There’s no employer cost associated with participating in a beta and customers are welcome to opt-out at any time.

What happens at the end of the beta?

At the end of the beta period, we’ll spend some time assessing whether Talkspace is the right fit for our customers and let you know if and how we plan to extend access to Talkspace moving forward.If Talkspace's offering is well received by participants in the beta and proves successful, we have every intention of rolling out a full partnership with Talkspace. That said, the details (including membership periods) of a full partnership are something we determine with our partners at the end of a beta. If we determine that the partnership isn't the right fit, we'll look elsewhere to address the mental health needs of our members.

Other questions?

Who should employers contact with questions?

Contact [email protected] with questions about the beta, and eligibility.

Who should employees contact with questions?

For questions about Talkspace, their services, appointments, and cost, employees should contact Talkspace directly at [email protected].

Enrollment

If your employer is offering the commuter benefit, you can enroll yourself for the benefit through the dashboard. Both full-time and part-time employees are eligible. Unfortunately, unpaid owners are not eligible for this benefit.

An employee must either enroll or make any changes to their WageWorks account before the 10th of each month for the following month. However, if you wish to enroll in commuter benefits for Metro North(NY) or the LIRR(NY), those orders must be placed by the 4th of the month.

*For example, if you place an orderon October 27th, you’ll have until November 10th to make any changes to the order. You’ll then receive the order by December 1st. The delivery method varies with the type of order you place.

To set it up, go to 'Benefits' from your dashboard, then click the 'Ancillary Benefits' tab.

WageWorks Support Center

Once you click ‘enroll’ from the Commuter Benefits box, you'll be led to a page where you can see more information about the different types of commuter benefits WageWorks offers.

Once you select 'Enroll Now for Free,' you will be redirected to WageWorks to complete the flow to make your benefit selections. For your ID code, you may use the last 4 digits of your Social Security number. We do not use a special employer code. You’ll need to enter your identification information exactly as it appears in the “Account Settings” section of your Justworks account.

When your enrollment is complete, you’ll receive a confirmation email from WageWorks. The email will include:

When to expect to receive your order - they are mailed to your home address in Justworks

Your first benefit month - your benefit will be active from the first of that month

The deductions

Your commuter benefit from WageWorks will be billed on the second pay-cycle of the month. The total amount is deducted based on the plan for which you enroll. For pre-tax, your gross pay is deducted the amount of the plan and then taxes are applied to the remaining gross amount.

Please note, the IRS maximum for pre-tax contributions for commuter benefits is $270 in 2020 for both transit and parking.

Making changes to your benefit

To make changes, log into your WageWorks account directly. If you have questions related to changing your benefit selection or the type of selections available for your location, you can contact WageWorks Customer Support to learn more. You can reach them at 877-924-3967 from 8am-8pm EST.

Lost cards

If you've lost your card, it's best tocontact WageWorks Customer Support (877-924-3967 from 8am-8pm EST) or visit theto have a replacement card mailed to you or to get help filing a claim. Please keep in mind that it's best to reach out to them as soon as you are able.

If you've yet to receive your card, be sure to double check that your order was placed on time and that your home address is listed correctly. If you placed the order on time and your home address is correct, WageWorks may be able to reimburse you for your order, so it's best to reach out to them directly.

Terminated employees

If you are terminated in Justworks, your WageWorks account will be cancelled immediately. Ifyou have a commuter card, then you will have 90 days to use the funds in the account. After that point in time, however, you will lose access to those funds. Any post-tax funds will be returned to you through direct deposit or physical check if your bank account information is not in your WageWorks account.

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.

State Unemployment Insurance: New York

New York is what's referred to as a PEO-reporting state for unemployment insurance. Justworks will report unemployment taxes under the Justworks unemployment account number. State unemployment charges will be invoiced by Justworks; your company’s SUI rate no longer applies in New York. If your business filed under your account for the prior quarter, you will need to suspend or close your previous unemployment account.

Closing NY Unemployment and Withholding Accounts:

If your company is joining Justworks, please follow the steps outlined below to close your NY Unemployment and Withholding accounts:

Let your previous payroll provider know to indicate final return on the quarterly returns for New York (NYS-45) for the final quarter they processed for your business.

If you permanently ceased paying wages, enter the date of the final payroll. The date listed should be the day before your Justworks start date.

Once filed and processed, this designation will instruct New York to close both your Unemployment and Withholding Accounts.

If you’re having trouble completing the online account setup process, please contact the state’s customer service line for assistance.

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.

What is Kindbody?

Kindbody is a network of women’s health and fertility clinics focused on improving the healthcare experience for women and their families. With clinics and centers of excellence in three major cities, Kindbody provides fertility, gynecology, and wellness services in modern, tech-enabled clinics. Their team of experienced and empathetic experts provide full-service care that aims to help patients easily and affordably navigate through personal care and family planning.

Note: This partnership is currently in beta from February 3, 2020 to August 31,2020. Only employers located in New York City, offering Aetna health insurance through the Justworks are considered eligible for participation at the moment.

Why Kindbody?

Kindbody offers high-quality health services with your employees in mind.

With Kindbody, your employees and their dependents over the age of 18, that have are enrolled in Aetna’s health insurance through Justworks get access to experts and services designed to help women of any age confidently navigate their health needs and milestones. Through Kindbody and Justworks, your employees will have access to:

Preventative Care: Kindbody offers standard OBGYN care, as well as lab testing.

Family Planning: Kindbody offers a full suite of services across all stages from preconception to postpartum, as well as support for alternative family planning, like adoption. Employees can go to Kindbody for fertility testing (for both men and women), IUI, IVF, sperm banking, egg freezing, embryo banking, annual storage, and genetic testing. Assistance with adoption is also offered through Kindbody.

Ancillary services: Kindbody provides women with additional services to support their health journey. Nutrition coaching, mental health counselling, and back to work coaching are also offered through Kindbody.

Dedicated care navigator: Once registered, employees will have access to a dedicated partner who can help guide them through their care journey. Care navigators can help employees understand what’s covered under their insurance plan, as well as coordinate their appointments and treatment schedules. On their own, employees can book appointments, chat with their care team, access their medical records and schedule video calls with their doctors, all online.

How does it work?

Kindbody works with your Aetna insurance, like a typical doctor’s office would.* However, through Kindbody’s membership-based model ($120 per year), employees get access to a lot more than they would at a regular doctor, including:

same-day visits for urgent-care issues

on-demand chat with your care team

discounted wellness services (mental health, nutrition)

discounted supplements

members-only events

Through the Justworks x Kindbody beta, eligible employees will have access to:

A free annual Kindbody membership (we’re waiving the typical $120 annual fee)

An additional 10\% off Kindbody’s non-preventative services

*Kindbody’s care navigators can work with you to understand what and how certain services are covered by your specific Aetna plan.

What kind of services do they offer?

Kindbody’s suite of women’s health services fall into four main categories:

Preventative Care: Women can visit Kindbody for their standard OB/GYN care, as well as for any lab testing. Kindbody also offers comprehensive nutrition/wellness coaching, and virtual therapy.

Preservation: Women who are interested in potentially deferring conception can go to Kindbody for fertility testing, egg freezing, embryo banking, annual storage, and genetic testing.

Conception: Kindbody offers a broad range of services for members interested in starting a family, including fertility testing for both men and women, IUI, IVF, and sperm banking.

Ancillary services: Unlike standard OB care, Kindbody provides women ancillary services to support a healthy pregnancy and post pregnancy, including nutrition coaching, mental health counseling, adoption services, and back to work coaching.

Once registered, employees will have access to a dedicated partner who can help guide them through their care journey. Care navigators can help employees understand what’s covered under their insurance plan, as well as coordinate their appointments and treatment schedules. On their own, employees can book appointments, chat with their care team, access their medical records and schedule video calls with their doctors, all online.

Where is Kindbody located?

Kindbody’s NYC practice is in the Flatiron District of Manhattan. Exact address can be found below.

102 5th Avenue

New York, NY 10011

How much does it cost?

Membership Fees

We’ve worked with Kindbody to waive the $120 annual membership fee generally required per employee. Employers are not required to contribute anything toward Kindbody, and employees only need to pay for the services they utilize, which are severely discounted and often covered by Health Insurance.

Costs of services.

For more details on costs of particular service offerings employees can contact Kindbody directly at [email protected].

How does an employee pay for services?

Any out of pocket expenses will be paid by the employee directly to Kindbody at the time of receiving the service. Kindbody is in network with Aetna, and their non-preventative care services are offered at a 20-30\% discount relative to market rates. In addition, they are offering Justworks members an additional 10\% off of their non-preventative care services.

Note: Employers that contribute to any amount of an eligible employee’s care will receive 20\% off of the services listed (vs. the 10\% off given to any employee paying solely out of pocket). To do so, Employers can contract Kindbody directly at [email protected].

How do I know if a service is covered by insurance, and what the cost is?

Kindbody is in network with Aetna for standard OB-GYN and women’s health preventative care services (for example, pap tests, gestational diabetes screening, mammograms, etc.). Thus the related deductible and co-pay rules apply. Some exceptions may apply.

Moreover, your Kindbody Care Navigator can look at your specific Aetna plan and tell you if a service is covered, and the all in cost you can expect to pay.

Can I pay using FSA/HSA dollars?

Yes.

Who’s eligible?

Is my company eligible?

Companies will be eligible for the beta if they are located in New York City, on Plus, and offering health insurance through Aetna.

Which employees can participate?

Employees enrolled in health insurance through Justworks, as well as any dependents enrolled in the same health insurance who are over the age of 18, will be eligible for the Kindbody beta.

That means anyone on your team, and their dependents over the age of 18, that have are enrolled in Aetna’s health insurance through Justworks will be eligible for an annual membership at no additional cost.

How do I sign up?

How do I sign my company up?

Employers can reply directly to the announcement email to opt in or out. If once you opt in, we will email your employees at the top of the following month.

How do employees sign up?

Eligible employees can sign up through the announcement email which will instruct them on next steps. If you have not received the email, think you’re eligible and would like to opt in please reach out to [email protected] so we can get you signed up.

Betas @ Justworks

What’s a beta?

We’re constantly working to build new features and work with new benefit providers that can help make our customers’ lives easier. As part of that process, we frequently run betas** (or tests) with a small group of customers as a way to gather customer feedback and determine whether a new provider is the right fit before rolling it out to everyone on Justworks.

But we’ll need your help.. To make sure this beta is working, we’ll be reaching out over the next few months for feedback to better understand how Kindbody is working for you and your team.

**There’s no employer cost associated with participating in a beta and customers are welcome to opt-out at any time.

What happens at the end of the beta?

At the end of the beta period, we’ll spend some time assessing whether Kindbody is the right fit for our customers and let you know if and how we plan to extend access to Kindbody moving forward. Rest assured, all employees enrolled in the Kindbody annual membership during the beta will continue to have their membership fee waived for the full 12-month period.

Other questions?

Who should employers contact with questions?

Contact [email protected] with questions about the beta, and eligibility.

Who should employees contact with questions?

For questions about Kindbody, their services, appointments, and cost, employees should contact Kindbody directly at [email protected].

What impact does being marked as a >2\% S-Corp Shareholder have?

Marking an employee as a >2\% S-Corp shareholder in Justworks will prevent the employee from enrolling in benefits that they are not eligible for as a result of their status, such as FSA and pre-tax commuter benefits. In addition, it will ensure that any medical, dental, and vision insurance premiums will be treated as 100\% employer-paid by default, to prevent shareholders from having pre-tax deductions applied for these benefits.

Indicating a >2\% shareholder’s status in Justworks also enables your company to account for taxation on employer-paid health insurance premiums that are considered imputed income. Each month, the value of imputed income for benefits your company makes available through Justworks will be automatically added to the shareholder’s regular, such that the correct payroll taxes can be collected and remitted.

Additionally, each quarter, we will conduct a reconciliation process to ensure that we’ve accounted for changes in either a shareholder’s status or their benefits costs, resulting from things like qualifying life events.

Due to all these unique restrictions and resulting payment implications, it’s very important that an individual’s >2\% S-Corp Shareholder status marked in Justworks actually reflects their status at your company.

What benefits are taxable for >2\% S-Corp Shareholders?

The IRS imposes tax on some employer-provided benefits for >2\% S-Corp shareholders. In general, >2\% S-Corp shareholders may not pay for certain benefits on a pre-tax basis, including Health Savings Account (HSA) contributions, and commuter benefits. Additionally, they must be taxed on certain benefits, such as the value of employer-paid health insurance premiums, employer contributions to an HSA, and employer-provided short- and long-term disability premiums. You may reference IRS Publication 15-B to learn more about the taxability of these benefits and the federal requirements.

What happens if a >2\% S-Corp Shareholder status is updated in the middle of the year?

Admins can update an individual’s >2\% S-Corp Shareholder status directly on their profile at any time during the year. However, please note that, in accordance with IRS guidance, this status applies for the entire year regardless of the date the status is applied.

If the employee has been enrolled in any employer-provided benefits that they are no longer eligible for (e.g. pre-tax health insurance), our Customer Success team will be in touch to calculate and debit for any applicable year-to-date taxes owed. Moving forward, at the start of each quarter, an automatic adjustment will be made to reconcile the taxes on the value of benefits contributions where applicable, which may result in a debit or credit to the company.

If the employee was previously indicated as a >2\% S-Corp Shareholder, but their status is changed such that they are no longer one during the calendar year, this will also result in changes to their benefits eligibility and taxation.

Either of these changes may require reconciliation and could result in debits or credits back to the company and/or employee. You may read more about adjustments on this page.

Manager permissions allow companies to give managers access to different functions across Justworks. As your company grows, you’ll want to give access to tools to help managers lead their teams and take some of that burden off of your admins. Withmanager permissions, you can enable what managers at your company can do.

How it works

There are two parts to giving managers a permission: first is making them a manager in Justworks, and managing what permissions managers get. Currently manager permissions are granted to all of your managers.

Adding a manager

Managers are defined as employees that have direct reports. To make someone a manager, navigate to their direct report’s page and select them as manager under the "Job Information" section of the member’s page.

this permission

Enabling and disabling permissions

To add or remove a permission for managers, navigate tothe Manager Permissions page. From there, you can click on the permission you would like to change, select whether it is enabled or disabled, and click save to update.

Manage Paid Time Off

Admins can allow managers at their company to approve or deny the PTO requests of their direct reports and extended team with the ‘Manage Paid Time Off’ manager permission. If granted this permission, managers will be able to view existing time off policies.

Manage Employee Timecards

With, managers will be able to fill out, submit, and approve hours for both their direct reports and extended teams. This is especially useful for companies with several locations with hourly employees.

Though managers will be able to view pay rate and salary info for each employee in their reporting chain, those with this permission will not be able to edit pay rates or viewing other payments such as supplemental or vendor payments.

View Basic Employee Information

Managers will be able to View their direct reports’ (and extended teams’) non-sensitive info such as PTO requests and emergency contact info with this permission. However, they will not be able to view or edit all employee’s sensitive information such as pay rate, SSN, and bank account information.

View All Employee Information

Here, employees will be able to view all information for their direct reports and extended team. They will still be restricted from making any changes, though, and from viewing the information of employees who are not either direct or indirect reports.

Who can change manager permissions?

Only admins with the permission to “Edit employee permissions” will be able to view, enable, or disable manager permissions.

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.

Get started

Getting set up for PTO with Justworks is easy. From your main dashboard, click the link under "HR."

this article

Select holidays

Next, select the days that your company recognizes as holidays. Justworks will automatically designate these same days as holidays each year. Our software knows that while Thanksgiving is on Thursday, November 26 in 2020, it will be on Thursday, November 25 in 2021. You can also add custom holidays to your holiday schedule !

Setting up a new policy

Basic Setup

Create a time off policy that fits your business. In the basic setup stage, you are able to fill out some general information about your PTO policy.

Policy Name:

Choose the name that you would like to call your policy (this is how it will appear to your employees).

Policy Effective Date:

Next, select the start date of the policy for your employees.

Note: It is important to take into account that choosing a date in the past will retroactively add time to your employee’s PTO balance.

Policy Type:

Choose the type of policy you want to create. On the platform, you will see the following options:

Vacation Policy: This can be used as a general PTO policy.

Sick Leave: Use this to track sick days.

Other: Some common policies include, volunteer days, bereavement, and floating holidays.

NON-US employee: This policy will only allow non-U.S. employees to request time off. PTO balances will be neither tracked nor calculated.

Note: Please be aware that, depending on the locations in which your employees work, you may be required to pay out any accrued, unused vacation to those employees when they leave your company. Additionally, many jurisdictions have laws that may require you to provide sick leave to employees who work within those jurisdictions. If you’re unsure which laws apply to your employees, please reference resources available via ThinkHR, and contact legal counsel accordingly.

Policy Structure

In this section, you will need to decide when the policy cycle should restart and how your employees accrue PTO.

Annual PTO Cycle

Each policy’s PTO balance runs on an annual cycle. There are two choices available for the policy cycle:

The Calendar Year: This policy runs from Jan 1Dec 31 and the annual PTO amount you assign will restart every January 1.

Employee's work anniversary: The annual PTO amount you assign will restart each year on the anniversary of the date your employee was hired.

PTO Grant types

On the platform, you are able to choose from one of the following grant types:

Days per year - accrued: This allows you to assign a number of PTO days per year to be accrued at a specific rate per day.

Days per year - granted upfront: Here you are able to assign a number of PTO days per year to be granted upfront at the start of the cycle.

Flexible or Unlimited: This structure does not place a limit on PTO requests, however, a company can decline a PTO request made by an employee.

Note: For PTO policy purposes in Justworks, default work week runs Monday through Friday, 8 hours each day, for a standard 40-hour work week.

Policy Add-ons

Here you are able to set some additional preferences for your policy.

Tenure Levels

If you would like to give more time off to your employees based on their length of service at your organization, you can add tenure levels.

For a policy on the calendar year annual PTO cycle, tenure increases will occur on January 1, after your employee’s 1st work anniversary. For example, an employee with a start date in February 2019, will receive their first tenure increase on January 1, 2021. For a policy on the employee work anniversary annual PTO cycle, tenure increases will occur on the employee’s work anniversary.

Carryover caps

You’ll be able to select whether or not employees are allowed to carry over days from one year to the next. If you allow carryover, you will be able to limit the number of days that carry over.

In certain states, like California, employers may not limit the amount of PTO that carries over from one year into the next. If you’re unsure which laws apply to your employees, please reference resources available via ThinkHR, and contact legal counsel accordingly.

Timecard sync

While creating your PTO policy, you can choose whether or not the time your hourly employees take from this policy are automatically included on their timecards once approved.

If you prefer to not have this time automatically sync in their timecards, you can select ‘unsync.’ You can change this setting at any time.

Assigning policies to specific employees

After the policy has been created, you can select which employees need to be assigned to the specific policy. To help break this down, you can choose to group employees by employee type, department, or office location. For example, you can create different policies for full-time and part-time employees or give your employees in New York a different policy than your employees in California.

Review

Finally, approve your policy and make any final adjustments to employee’s starting balances.

Once you've finished setting up your policy, you can learn more about how to manage it here. You can also direct your employees to so they can request time off.

Editing and Disabling policies

Under ‘Time Off Policies’ section, you can go to edit and disable policies under the ‘Policy’ section.

If you need to add new employees to a policy, you can edit the policy and click through the steps to the ‘assign employees’ section.

If you need to change a policy for your employees (other than adding more people or changing the name), we recommend disabling a current policy and creating a new one in its place.

When making a new policy, make sure to record all of your employees’ current balances beforehand with the PTO Balance report. Go to the Report > PTO Balance Report and download the report so that you have your employees’ balances to input as each employee’s ‘starting balance’ in your new policy.

Disabling policies is easy. First, navigate to HR > Time off policies > Policies. From here, you should see all of your active policies. To disable, just click on the “Disable” button in the top right corner of the policy.

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.

What Is a 1095-Bor 1095-CForm?

Both 1095-B’s and 1095-C’s are tax forms which provide proof of health insurance coverage that meets the minimum essential coverage standard as defined by the Affordable Care Act.

The forms show the policyholder covered by the policy, as well as any dependents on the policy, and the months in which the individuals on the policy were covered.

Who Receives a 1095-Bor 1095-CForm?

If you had health insurance through your employer or independently during any part of 2019, you will receiveeither a 1095-Bor a 1095-C.

Only policyholders receive a 1095 form for that policy. Any dependents that need to furnish proof of health insurance coverage may request a copy of the form from the policyholder.

Where Does the 1095 Form Come From?

If your employer is considered an “Applicable Large Employer” or “ALE”, your employer will provide you with a 1095-Cform.

If your employer is not considered an ALE or if you are independently insured, you will receive a 1095-Bform directly from your insurance carrier.

If you had coverage from multiple carriers, or multiple ALEs, or even a mix of both, you will receive more than one 1095-Bor 1095-C.

What Do I Do with My 1095-Bor 1095-CForm?

These forms are for you records and contain information you may need to file your taxes. There is no action required on your part to complete the filing of a 1095-Bor 1095-Cform.

When Can I Expect To Receive My 1095-Bor 1095-CForm?

The IRS deadline requires that insurance carriers or ALEs provide eligible members with a 1095-Bor 1095-Cno later than March 2nd, 2020.

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.

What is supplemental life insurance?

Life insurance provides a death benefit to a designated beneficiary (or beneficiaries) in the event of the insured person’s death. “Supplemental” life insurance is extra or additional life insurance that typically is purchased in addition to other life insurance (usually referred to as “basic” life insurance offered by your employer).

How do I purchase supplemental life insurance through Justworks?

If your employer offers supplemental life insurance, you’ll have 30 days to sign up from the day you complete your Justworks profile and are otherwise eligible under the terms and provisions of the insurance policy. We’ll send you emails to notify you of the opportunity and to remind you to sign up!

If you missed your opportunity to sign up but still wish to get coverage, you can do so by going through the Statement of Health process. Please see the section below for more details.

How much life insurance should I buy?

Since supplemental life insurance is a voluntary benefit, this is up to you! For supplemental life insurance through Justworks, the insurance carrier requires a minimum amount of $50,000, and you may purchase additional coverage in increments of $50,000, up to a maximum of $1,000,000, provided that any amount in excess of $150,000 is subject to satisfying the insurance carrier’s health underwriting requirements (more on this below).

When thinking in more detail about how much to buy, you may want to think about the value of your mortgage or other loans, and the cost of college for your children - the amount of the insurance policy can help cover these costs in the event of your death. You may also want to consider if an extended family member is currently or likely to be dependent on your future income.

How does pricing work?

Prices for both employee coverage and spouse coverage depend on the amount of coverage and the employee's age.

Pricing details will be available in your Justworks account - You > Benefits > Ancillary Benefits - when you have the opportunity to sign up.

Statement of health (SOH)

Applying for higher amounts:

If you would like to purchase amounts of coverage over $150,000, you must submit a statement of health for each applicable insured person to MetLife. Higher amounts of coverage will only become available if the insured person satisfies MetLife’s health underwriting requirements.

The appropriate statements of health will be available to you in Justworks under Documents and will also be emailed to you when you sign up.

Send the statement of health form only to MetLife ([email protected]) within two weeks of signing up.

Once MetLife has reviewed your statement of health, you will receive an email from MetLife with their decision. The approval or denial will be sent to you via email as well as updated in your Justworks account under the ancillary benefits tab within two weeks.

Applying for coverage outside of enrollment period:

If you missed your enrollment period, you can still apply for coverage by submitting a statement of health. This process will not have a guaranteed amount for approval and you will be subject to all of MetLife's underwriting requirements.

Once MetLife has reviewed your statement of health, you will receive an email from MetLife with their decision. The approval or denial will be updated in your Justworks account within two weeks time.

Additional documentation:

In some cases, you’ll be asked to submit an Attending Physician’s Statement (APS), or visit a medical professional for a paramedical exam. Most applicants will not need an APS or a paramedical exam, however the need for one is often determined by age of the insured, answers on your SOH, and the amount of coverage that is requested. This visit will be arranged by MetLife at no cost to you.

Do I get to keep my coverage if I leave the company?

If you're terminated or your employer stops using Justworks and you wish to keep your coverage, you can do so by porting the coverage. You can simply get in touch with us to ask for a portability form to submit to MetLife, and you'll work directly with them to set up continuing your coverage.

What happens if I die?

Your designated beneficiary (or beneficiaries) will need to file a claim for death benefits with MetLife.

What if I don’t submit my beneficiary information?

If you do not designate a beneficiary (or beneficiaries), any death benefit will be paid to the applicable default beneficiary set forth in the life insurance policy. In order to avoid unintended consequences, it is highly recommended that you complete your beneficiary designation form.

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.

While our plans are generally widely available nationwide there are some limitations.

Aetna’s DMO plan is not available in Alaska, Arkansas, Delaware, Hawaii, Louisiana, Maine, Mississippi, Montana, New Hampshire, North Dakota, Oklahoma, South Carolina, South Dakota, Vermont, West Virginia, and Wyoming. There may also be areas outside of the above states where the DMO plan is not available.

Our other dental plans might also have limited availability for some employees located in remote areas.

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.

How to change your password

From "Account Settings" underYou, click the "change your password" button under "Security."You'll be prompted to enter your current password as well as your new password.

How to view and print your payment voucher

You can view your payment vouchers by logging in to your account and clickin the "Paystubs" button under "You."Click on any of the dates, and you can see a full breakdown of the payment. In the top right corner of each payment voucher, you'll see a button to download as a PDF.

How to update your bank account settings

From "Account Settings" underYou, click the blue pencil next to "Bank Accounts"to update your Direct Deposit information. You can also add multiple bank accounts to split your deposits.

How to update your contact information

From "Account Settings" underYou, click the blue pencil next to "Contact" to update your address, phone number, email, and emergency contact.

How to update your finance information

From "Account Settings" underYou, click the blue pencil next to "Finances" to update your filing status (determined from your W-4 ) and select whether you'd like payment amounts to be displayed in your email.

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.

Employees and contractors have the option to split their direct deposit between up to ten bank accounts.

In your Justworks account, navigate to "Account settings," and then edit your "Bank Account". On this page, you'll be presented with the option to add multiple bank accounts for your payments.

You can add up to ten bank accounts on this screen. You’ll have to enter in the account and routing numbers of your additional accounts, which can only be checking or savings accounts. At this time, there’s no option to add brokerage or similar accounts.

There is also the option to enter a nickname for each account, though that is not required.

Additionally, you can choose to split your deposit based on percentage, or based on a flat dollar amount. If you enter the amounts based on percentages, they’ll have to add up to an even 100\%. You’ll be unable to save the information you’ve entered otherwise.

When you split based off of flat amounts, you have the option to designate amounts for each account, or leave some fields blank. For example, if you leave your primary amount blank and designate amounts for secondary bank account(s), any amount beyond what’s you’ve designated will go the primary account.

If you do designate dollar amounts in each bank account, any overflow amount will go back to the primary account listed.

Once you submit your preferences, you’ll see your bank accounts listed under in your Account Settings page:

You can also expect an email confirming the change. You won’t have to take any action here, but we want to give you a heads up nevertheless.

Will all types of payments be split?

No, not all payments will be split between multiple accounts. Find a list of applicable payments below.

Payments that will be split between the multiple accounts:

Salary (biweekly or semimonthly)

Wages (weekly or biweekly)

Contractor Pay

Bonus / Commission

Salary off-cycle

Paycheck tips

Owner’s Draw

Payments that will only go to the primary account:

Expense Reimbursement

Misc Non-taxable

Retroactive Severance

Taxable Moving

Vendor Payment

Supplemental - Other pay type.

Please keep in mind that receiving more than one payment on the same day may result in all payments going into your primary account.

When will changes take effect?

When adding additional bank accounts, it may take up to one pay cycle for changes to take effect, based on how soon your next payday is.

If you're unsure when you may see the updates reflected, please reach out to our Customer Success team and we'd be happy to help.

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.

What is the Fair Labor Standards Act (FLSA)?

The Fair Labor Standards Act (FLSA) is the federal wage and hour law which regulates minimum wage, overtime, equal pay, recordkeeping, and child labor. The FLSA generally requires employers to pay employees at least the minimum wage, and overtime if employees work more than 40 hours in a week. The FLSA does, however, exempt certain kinds of employees from the minimum wage and overtime requirements. These are known as “exempt employees”.

Note: Some states and local jurisdictions have their own wage and hour laws, which may provide greater protection for employees than what is provided under the FLSA. Generally, where federal, state, and local laws conflict, the law that is most beneficial to the employee prevails.

Who is covered by the FLSA?

Most employers are covered by the FLSA.

Employees who work for certain businesses or organizations (or "enterprises") are covered by the FLSA. These enterprises, which must have at least two employees, are: (1) those that have an annual dollar volume of sales or business done of at least $500,000 (2) hospitals, businesses providing medical or nursing care for residents, schools and preschools, and government agencies.

Even if an employer is not covered on an enterprise-wide basis, employees may be individually covered by the FLSA if their work regularly involves them in commerce between states. The FLSA covers individual workers who are "engaged in commerce or in the production of goods for commerce."

BUSINESS OWNERS EXEMPTION:

Under a special rule for business owners, an employee who owns at least a bona-fide 20\% equity interest in the company they are employed by, regardless of the type of business organization (e.g., corporation, partnership, or other), and who is actively engaged in its management, is considered exempt under the executive employee exemption.

What does it mean to be an exempt or non-exempt employee under the FLSA?

Non-exempt employees:

Non-exempt employees are those that are subject to the minimum wage and overtime requirements under the FLSA. These employees must be paid the minimum wage and an overtime premium (at least one and one-half times their regular rate of pay) for hours worked over 40 in a week.

Non-exempt employees may have minimum wage, overtime, and recordkeeping requirements in addition to FLSA requirements, depending on the state/locality in which they work.

Exempt employees:

The FLSA exempts certain kinds of employees from the minimum wage and overtime requirements. Although there are several exemptions, the most common are:

Administrative employees

Executive employees

Professional employees

Computer professional employees

Outside sales employees

Highly compensated employees

Some states and/or localities have differing or additional requirements for employees to qualify for exemptions. In certain states, some exemptions are not available at all. For example, California and New York do not recognize the FLSA’s exemptions for highly compensated employees or business owners. Employers need to check applicable state and local wage and hour laws before making a determination on whether an employee is exempt.

For a list of other, less common FLSA exemptions, see here.

To be exempt, employees must generally meet three tests:

Duties test: The employee's job duties must primarily involve executive, administrative, or professional duties as defined by the regulations. Each exemption classification requires certain types of exempt duties.

Salary basis test: The employee must be paid a predetermined and fixed salary that is not subject to reduction because of changes in the quality or quantity of work performed. For certain exemptions, a fixed fee may also meet this test.

Salary level test: The amount of salary paid must meet a minimum amount specified by the regulations.

On the federal level, owners or employees with more than 20\% bona-fide equity interest are not subject to the salary level requirement. If the employee holds under 20\% bona-fide equity interest, they may not be exempt unless they qualify for another exemption. Additionally, certain white collar employees are not subject to either the salary basis or salary level tests (e.g., doctors, teachers, lawyers, outside sales employees).

Many states and/or localities have their own salary tests, with some setting a higher minimum salary than the federal minimum salary.

If an employee is paid an annual salary that exceeds the salary level test, does that mean the employee is exempt from overtime pay?

Not necessarily. For an exemption to apply, an employee’s specific job duties and salary must meet all of the applicable requirements that are outlined by the DOL and state wage enforcement agencies. So, even if the employee’s salary exceeds the applicable salary threshold(s), the duties test must also be met.

Can salaried employees be non-exempt?

Yes, salaried employees can be non-exempt and can continue to be paid a salary as long as they receive at least the minimum wage for all hours worked and are compensated at 1.5 times their regular rate of pay for all hours worked beyond 40 in the workweek (and other overtime requirements as applicable). Employers will need to track the hours of salaried employees closely to ensure they pay overtime in accordance with all applicable federal, state, and local laws.

For DOL guidance on how to comply with the overtime requirement for salaried non-exempt employees, see DOL Fact Sheet 23. Be sure to also check state and local wage and hour laws.

What is the salary requirement for part-time salary workers?

Unless the employee falls under one of the occupations that is not subject to the salary level requirement (e.g., doctors, lawyers, teachers, outside sales), the employee must satisfy the full standard salary level test if they work any amount of time in the workweek. Full-time or part-time status does not impact this salary level requirement.

What is the overtime rate for non-exempt employees?

Under federal law, the overtime rate is 1.5 times the employee's regular rate of pay. "Regular rate of pay" includes an employee’s hourly rate plus the value of non-discretionary bonuses, shift differentials, and certain other forms of compensation. Not all types of compensation are included in the regular rate of pay. For further DOL resources and information on overtime calculation, see here.

Some states and/or localities have different overtime rates and requirements. For example, overtime requirements in California dictate that a) employees are paid 1.5 times their regular rate of pay for any hours worked in excess of 8 in a workday and b) employees are paid 2 times their regular rate of pay for all hours worked over 12 hours in a workday.

What constitutes "hours worked" under the FLSA?

Employees must be paid for all hours worked in a workweek. In general, “hours worked” includes all time an employee must be on duty, or on the employer’s premises or at any other prescribed place of work, from the beginning of the first principal activity of the work day to the end of the last principal activity of the workday. Also included is any additional time the employee is allowed to work.

Problems arise when employers fail to recognize and count certain hours worked as compensable time. Hours worked may include meal and rest periods, travel time, training time, and preliminary/postliminary activities. For example, an employee who continues to work while eating lunch is working. This time must be counted and paid as compensable hours worked because the employee has not been completely relieved from duty.

For additional information on what constitutes hours worked, see DOL Fact Sheet 22. Be sure to also check you state and local requirements.

Do non-exempt employees have to record their hours on a daily basis or punch a time clock?

Under FLSA regulations, overtime-eligible workers are not required to punch a time clock. However, the FLSA requires that employers keep certain records for every non-exempt employee to make sure they are paid the wages they are owed. Employers may choose how to record hours worked for overtime-eligible employees there is no special or prescribed form.

Employers must keep an accurate record of the number of hours worked by the employee per day, but it’s not necessary to record specific start and end times. For example, an employer could require an employee to only provide the total number of hours he or she worked each day, including the number of overtime hours, by the end of each pay period.

Note: State laws may have additional recordkeeping requirements.

Department of Labor (DOL) Resources

Fact Sheet 17A: Exemptions

Overtime Pay

Minimum Wage

State Labor Laws

FLSA Advisor Tool

FLSA Overtime Security Advisor Tool

Other Resources

ThinkHR: Minimum Wage and Overtime *

ThinkHR: FLSA White Collar Exemptions *

ThinkHR: State Laws *

*Be sure you’re logged into your Justworks account with administrative permissions to access ThinkHR.

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.

What is an HSA?

A Health Savings Account (HSA) is a pre-tax savings account for employees with a qualified high deductible health plan. Those enrolled in HSAs can make accumulated tax-free contributions to pay for health insurance costs for themselves and tax dependents including doctor and hospital visits, co-payments, eyeglasses, prescriptions, certain long-term care insurance premiums and COBRA premiums. They can also contribute to their deductible. Funds within an HSA can rollover from year to year. Unpaid owners are not eligible for HSAs.

How does an HSA differ from an FSA?

Both HSAs and FSAs allow you to pay for qualified medical expenses with pre-tax dollars. There are two key differences for HSAs:

HSAs are only available to employees enrolled in high-deductible health insuranceplans. Conversely, FSAs are available for all plans if you decide to offer them.

Unlike an FSA, HSA balances can accumulate and roll over from year to year. Employees get to keep their HSA funds, even if they move to a different plan at the end of the year.

What are the caps on the HSA contributions?

There’s a cap from the IRS on maximum contributions an employee can make per calendar year. For 2020, the caps are as follows:

Individual: $3,550

Family: $7,100

Participants who are are 55 or above can contribute an extra $1,000 towards those caps. Contributions are deducted from the second paycheck of each month.

What are the fees on an HSA?

Your account will earn annual interest at .05\%

If you have a balance below $1,000, you’ll be charged a $3.50 monthly service charge.

When your balance reaches $1,000, you can invest in 26 different low-fee fund options. If you use your HSA to invest in funds, you’ll be charged $2.90 a month.

When will I receive my payment card?

You will receive your payment card within 7-11 days of setting up your account through BenefitWallet.

Is there a deadline for enrollment?

There is no deadline for setting up your HSA account. If you have an HSA-eligible plan, you can get started at any time.

When can an employee change their HSA contribution amounts?

Employees can change their individual HSA contributions at any time.

When an employee is terminated what happens to their HSA?

Terminated employees are no longer able to contribute to their HSA, but employees will always have access to their HSA and can always use any funds in their HSA. Terminated employees will not count toward your monthly HSA cost starting the month following their termination.

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.

This article addresses specific compliance issues around terminating employees in the District of Columbia. If you'd like to know how to terminate an employee within Justworks, please visit Terminating Employees.

Washington, D.C. law requires that employees be paid their owed wages on the next working day following termination, if the termination is involuntary. If an employee resigns, then the final pay must be paid out by the next regular payday or seven days, from the employee’s resignation date, whichever is earlier, and the final paycheck can be paid via direct deposit or otherwise.

This means that if an employer chooses to let an employee go, the employer is responsible for the employee’s receipt of final wages by the next working day. Generally, a physical check will be generated and presented to the employee upon termination, or made available for pickup the following day. This manual payment needs to be promptly reported to Justworks so that Justworks can report and remit payroll taxes as required.

It is permissible for the employer to mail the final check, as long as it is delivered to the employee’s last known address by the next working day. Issuance of final pay via direct deposit is allowed only if scheduled in advance, so that the employee receives the funds no later than the working day following termination. Given that the timing of the final wage deposit may occur prior to the employee receiving notice of termination, this approach may not be advisable.

Employers are also required to pay out any accrued, unused vacation to a terminating employee in the absence of an express agreement to the contrary. All accrued, unused vacation must be paid as wages and at the employee’s final rate of pay.

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.

Justworks has three access levels

In addition to administrator access and manager access, Justworks provides employee access, which allows an employee to see your company’s directory and their own paystubs. Employees can also update their own contact, tax and bank settings.

The directory provides easy access to contact information

The Justworks directory makes it easy for members of your team to get each others’ phone and email contact information. The directory also shows job titles and reporting structure.

You can hide people from the directory

Any employee or contractor can be hidden (or unhidden) from the directory. If they are hidden, they will not be able to see other people in the directory and other people will not be able to see them in the directory.

To change whether someone is displayed in the directory, navigateto their profile, edit the "Employment" box and change their status to "Hidden from Directory".

Terminating an employee

To terminate an employee, log in as an administrator, and click on the employee's name under the Employees tab. You can start the process by clicking on the 'Schedule Termination' button towards the top right of that screen.

When an employee has been terminated, theywill appear under a "Former Employee" field in the employee list.

This will give you a list of all current and former employees.

Removingan employee from your account

You can remove members from Justworks that have never been paid, and who are terminated. As long as the employee has never been paid, after anadministrator has terminated them, an option will appear that will allow them to be removed, in a stripe across the top of their individualpage, as well as in a link on the full list of all employees.

In the person's individual record, it will look like this:

In the full list of all employees, it will look like this:

Adding employees or contractors to departments

You have the ability to connect an employee or contractor to a department. This will makes it easier to group employees, and to view who’s in the group (much like the office functionality currently works).

How it works:

Employees + contractors can be in departments, but vendors and 3rd party admins cannot be in departments

An employee can only be in one department at a time

Departments are simply buckets of employees.

Currently, there is no hierarchy (such as, head of department).

Adding a employee or contractor to a department is as easy as specifying which office they work, which you can find under the 'Job Information' tab of their profile.

Justworks requires employees to have internet access and a bank account

Each employee is required to create and manage their own account. As an administrator, you can see all information that they enter and change. You will not be able to edit employee bank information once they have completed enrollment, however.

Non-compete forms, W-9s, andother HR forms

For non-competeor other HR forms, visit our HR Resources section.We collect the I-9s for you, and then we issue the necessary W-2 and 1099 forms at the end of the year on your behalf.

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.

Justworks supports payments to employees, contractors, and vendors through ACH direct deposit. As an employee or contractor, you’ll be invited to Justworks by your employer and in order to be paid, we’ll need some basic personal information as well as your bank details so we can ensure you’re paid on time.

How do I find my routing and account number?

You can find this required information on a check from your bank. All checks will list both the account and routing number for the associated bank account as pictured below.

help article

Routing numbers are tied to regions and will be the same for all banks in a certain area. Account numbers are unique to each individual.

Can I be paid to more than one bank account?

Yes you can! To learn how to do so, please visit ouron splitting payments into multiple bank accounts.

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.

What is a qualifying life event?

A qualifying life event, or a QLE, is designated as a change in your living situation that can make you eligible for a Special Enrollment Period, allowing you to enroll in health insurance outside the yearly open enrollment period. Most QLEs also permit employees to enroll in or increase their FSAs.

What is considered a qualifying life event?

A qualifying life event can be one of the following:

marriage

birth of a child

adoption of a child

legal separation/divorce

death in the family

employee turns 26 (and loses prior coverage under parent's/guardian's plan)

move to a new location (not always applicable depending on the new location, as most of our plans are national)

involuntary loss of previous coverage

How long do I have to submit a QLE?

When you have a qualifying life event, you can make updates to your benefits coverage by submitting proof of the QLE within 30 days of the event.

Otherwise, all changes must happen during your company's open enrollment period.

Keep in mind, however, that we will backdate any new coverage to the first of the month. For example, if you got married on May 15th and wanted to add your spouse to your plans, their coverage under Justworks would be effective as of May 1st.

If I do have a QLE, how do I update my plans with Justworks?

If you'd like to update your plans with Justworks, navigate to the Benefits tab in your account. You'll see the option to 'Change Benefits' from towards the top right of that page.

[email protected]

The next screen will have information about common Qualifying Life Events, and the documentation that we'll need from you in order to process any changes. Generally speaking, the documentation we'll need for each QLE and requested change is as follows:

Qualifying Life Event

Desired Change

Documentation Required to make change

Birth of Child

Enroll in or change coverage for myself and/or any new dependents

It’s a...birth certificate, a hospital record of birth, or a certificate of live birth that you’ll need to change your health insurance plans. All of these can be acquired from the hospital where your child was born.

Adoption of Child

Enroll in or change coverage for myself and/or any new dependents

Welcoming a new addition to the family? Have your adoption or guardian papers that establish your parental rights of the child ready to change your coverage.

Marriage

Enroll in coverage for myself, my spouse, and/or any new dependents

Congratulations newlyweds! You’ll need your marriage certificate from the city clerk’s office to make a change. Remember, this is not your marriage license and can only be obtained after you say “I do.”

Marriage

Drop coverage for myself and/or any dependents

Switching to your spouse’s insurance? In addition to your marriage certificate, you’ll need proof of coverage from your new insurance carrier with the start date of your coverage. If you’re dropping dependents from your current plan, you’ll need this letter for each one that is being dropped.

Divorce

+Enroll in coverage for myself

-Or-

+Add dependents to coverage

To make these insurance changes you’ll need a divorce decree obtained from the city clerk’s office, as well as a letter of cancellation from your previous carrier with the last date of coverage. Each person that is affected should have their own letter of cancellation.

Divorce

Drop spouse from coverage

If you would like to drop your spouse from your coverage, submit a divorce decree obtained from the city clerk’s office.

Divorce

Drop spouse and dependents from coverage

In addition to a divorce decree from the city clerk’s office, you’ll need to provide proof of coverage for each dependent you’re dropping. This letter from their new carrier should include the start date of their plan.

Domestic partnership

Enroll in or change coverage for myself, my partner, and/or any new dependents

Congratulations! If you have a domestic partnership state certificate, then that’s all you need to make a change to your insurance.

If you don’t have this certificate, you’ll need to fill out Justwork’s domestic partnership affidavit and submit three of the following documents:

Common ownership of real property (joint deed or mortgage agreement) or a common leasehold interest in property

Common ownership of a motor vehicle

Driver's license listing a common address

Proof of joint bank accounts or credit accounts

Proof of designation as the primary beneficiary for life insurance or retirement benefits, or primary beneficiary designation under a partner's will

Assignment of a durable property power of attorney or health care power of attorney

Domestic partnership

Drop coverage for myself and/or any dependents

Changing coverage to your partner’s? You’ll need a domestic partnership certificate, as well as proof of coverage with your plan’s start date from your new insurance carrier. A separate letter must be provided for each dependent that is dropping coverage from your current plan.

If you do not have a domestic partnership certificate you’ll need to provide 3 of the documents listed above, Justwork’s domestic partnership affidavit, and proof of coverage.

End of Domestic Partnership

Enroll in or change coverage for myself, my partner, and/or any dependents

To make changes to your coverage for this reason, you’ll need to obtain a declaration of termination of domestic partnership, which can be obtained from the city clerk’s office. You’ll also need, a letter of cancellation from the previous carrier with the last date of coverage. A separate letter must be provided for each person who will be affected by this change.

End of Domestic Partnership

Drop partner from coverage

If you would like to drop your partner from your plan, submit a declaration of termination of domestic partnership.

End of Domestic Partnership

Drop partner and/or any dependents from coverage

If you’d like to drop your partner or any dependents from your coverage, you’ll need to obtain a declaration of termination of domestic partnership. For any dependents that are being dropped, provide a letter of proof of coverage from their new insurance carrier with the start date of their plan. A separate letter must be provided for each dependent who will be affected by this change.

I or my dependent obtained alternate coverage

Drop coverage for myself and/or any dependents

Leaving a plan? All you need is proof of coverage from the new insurance carrier with the start date of coverage. Each person who is being dropped should have separate proof of coverage.

I or my dependent lost insurance coverage

Add coverage for myself and/or any dependents

Need a plan? Provide a letter of cancellation from the previous carrier with the last date of coverage for each person that needs coverage.

The next screen will have information about Qualifying Life Events, and the documentation that we'll need from you in order to process any changes.

From there, you'll be able to select which type of event you've experienced, and notify us of the plans you wish to change. We'll also let you know how long we'll have to process your changes, so it's important that you get the proper documentation to us as soon as possible.

Once you submit your change request and attach the relevant documents, you'll see a confirmation page reviewing your request. You should be on the lookout for next steps from us shortly!

If you're unsure if your event qualifies, please reach out to us at .

Can I make changes to my plans outside of the QLE open enrollment window?

You are not able to make any changes to an elected insurance plan after the effective date of the plan or outside of your QLE open enrollment window. The IRS pre-tax rules govern when changes can be made to health insurance plans. Except in the event of a QLE, the pre-tax rules prohibit changes to an elected insurance plan after the effective date (i.e., elections must be irrevocable for the plan year, or the remainder of the current plan year, in the case of a newly eligible employee).

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.

Employees who have had their benefits terminated due to the end of their employment with a Justworks company are eligible for COBRA Coverage.

What is COBRA?

The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) is a federal law which gives workers and their families (“qualified beneficiaries”) the opportunity to continue their group health benefits provided by the employer’s group health plan for certain specified periods of time in the event that they lose coverage under the plan as a result of certain qualifying events.

How does it work with Justworks?

When an employee’s termination is scheduled in the Justworks platform, it triggers a notification to our COBRA administrator. When employees on Justworks have their employment terminated, their benefits coverage will expire on the first day of the following month. For example, if someone leaves a company on June 15th, their benefits coverage will remain active through June 30th.

Shortly after theirtermination is processed in Justworks,a terminated employee will receive a physical packet from our COBRA administrator in the mail. The packet will be sent to the employee’s home address that’s listed in the system, so it’s important to ensure that the information in their Justworks account is correct.

This packet contains information regarding rights to COBRA coverage, how to make an election, the name of the plan’s COBRA administrator, and how to obtain additional information. Terminated employees will also be able to enroll in COBRA online, by going through our provider's online portal.

Should a terminated employee choose to enroll in COBRA coverage within the election period, the coverage will be effective retroactive to the first day after which their benefits expired. This ensures that there are no lapses in coverage. Unless their now-former employerwishes to contribute to the plans, the terminated employee will be responsible for the full cost of the premium, plus a 2\% administration fee. Employees on COBRA will also be able to set up automatically recurring payments through our provider's online portal.

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.

When your company joins Justworks, it’s important to pay attention to your allowances, additional withholding amounts, and filing status while setting up your account. Those settings, among other factors, will directly impact how taxes are applied to your paychecks through Justworks.

Account Settings - Address & Tax Information

Since taxes are applied based on where you live and work, it’s important to enter your home address here accurately while creating your Justworks profile:

IRS Form W-4

On the next page of the enrollment flow, you’ll be prompted to enter your allowances and withholdings status. You can also designate an additional withholding amount to be withheld from regularly scheduled salary and wage payments.

If you’re unsure about how to calculate your allowances, you can refer to .

Once your enrollment is complete, you can change these settings at any time from your Account Settings tab. It’s important to note, though, if you want your paychecks to remain largely consistent with what you experienced on your old provider, when transitioning to Justworks, your allowances and withholdings should closely match the ones you had previously.

If you’re looking to have a different amount of allowances or additional withholdings for your state than you’ve entered for federal taxes, please reach out to our Customer Success team for the proper forms.

Benefits + Company Contributions

It’s also possible that your Justworks paychecks look different than the ones from your previous provider because of your company’s benefits offerings.

If you’ve enrolled in more pre-tax benefits through Justworks than you had previously (for example, you’ve enrolled in Medical, Dental, and Vision plans now but only were enrolled in Medical previously), the total amount you’ll have deducted from each paycheck and your total taxable wages will likely be different.

Furthermore, if the cost of the benefits and/or what your company may be contributing towards benefits has changed, this likely will result in a change in your taxable wages.

Your taxable wages may also be impacted by ancillary benefits, 401(k) deferrals, or transit deductions. Depending on how much you are having taken out per paycheck or per month, your taxable income may increase of decrease from what you had through a previous provider.

Other Factors

Pay Frequency

There are three pay frequencies that Justworks companies can be on:

Semimonthly - Employees are paid on the 15th and last business day of the month (or closest previous business day to each), 24 times a year.

Biweekly - Employees are paid every other Friday for the two work weeks prior, 26 times a year (biweekly pay periods may span over two calendar years)

Weekly- Employees are paid each Friday for the work week prior, 52 times a year (weekly pay periods may span over two calendar years)

*non-exempt employees cannot be on the semimonthly frequency on Justworks.

If you notice slight changes to your gross and/or net pay once your company has fully onboarded, be sure to check your company’s pay frequency.

Wage Bases - Social Security & Medicare

Depending on the amount of taxable wages you earned prior to when your company switched to Justworks, you may see a difference in your withholdings for Social Security. This is because the 2019 Social Security Wage Base is $132,900, so once you've earned that taxable amount in one year, you will not have to continue to contribute to Social Security until the calendar turns to the next year.

However, there is no such base for Medicare. In fact, an additional .9\% gets added to the standard 1.45\% Medicare taxes once an employee has received more than $200,000 in taxable wages within one calendar year.

If you move to Justworks mid-year, and your admin did not provide us with year-to-date payroll reports, you may see Social Security tax withheld even if you have satisfied the base while on your previous provider. You may also see that regular amount for Medicare applied, if you’ve received over $200,000 in the calendar year prior to moving over to Justworks. Any underpayment or overpayment of Social Security and/or Medicare should be reconciled at the individual level, when you file your taxes for the preceding year in the spring.

Keep in mind that if your company does start on Justworks on January 1st, your first paycheck will include the above taxes, which you may have hit the base for through your previous provider.

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.

Justworks - QuickBooks Online Integration

To get started, select “Connect to QuickBooks Online” under Accounting integrations at the top of the Invoices page. You’ll be prompted to sign into your QuickBooks Online account. Signing into your account will allow you to map pay types in Justworks to your Chart of Accounts in QuickBooks Online, and then send Justworks invoices over.

BANK ACCOUNT MAPPING

Next, you’ll need to create a mapping for your bank account. The “Bank account mapping” should be mapped to the bank account you have linked to Justworks.

PAY TYPE TO ACCOUNT MAPPING

Now that you’ve set up your bank account mapping,, you’ll need to map each pay type in Justworks to an Account from your Chart of Accounts in QuickBooks Online.

You can also link to sub-accounts from your Chart of Accounts.

Keep in mind here that you’ll have to link every pay type to an Account in order to proceed. You can, though, link multiple Justworks pay types to the same QuickBooks Online Account from your Chart of Accounts.

DEPARTMENT MAPPING

If you’d like to track payroll expenses by department, you have the option to do so as well. Once you’ve set up your pay type mappings in the general setup above, you’ll see the option to map payment for each department that you have in Justworks to their own accounts in QuickBooks Online.

Unlike the general settings above, you will not need to map every pay type to an account. Therefore, any pay types not mapped on a department level will still reflect under the larger account for that pay type.

One good way to use the department mappings is to create sub-accounts of larger accounts for common pay types. For example, you could create several sub-accounts of the larger Salary + Wages account, so that there’s one for each of your company’s departments.

SENDING INVOICES TO QUICKBOOKS

After your payments process and invoices are created in Justworks, you will be able to send each invoice over to QuickBooks Online with the click of a button.

From the Invoices tab, you’ll see the option to ‘Send to QBO’ next to each invoice.

If you don’t see 'Send to QBO' next to each invoice, return to the “Connect to QuickBooks Online” page to make sure you have all pay types mapped to an Account in QuickBooks Online.

Once sent, you’ll be able to see each Justworks invoice you send to QuickBooks Online as an Expense in your QuickBooks Online Account.

Once you click into ‘View/Edit’ from a certain expense, you’ll see a further breakdown by category. This will match what you see for each invoice in Justworks, mapped out to the specific account in QuickBooks Online

Justworks - Xero integration

Justworksconnects seamlessly to Xero. Send all your paid invoices to Xero so you can keep track of your entire financial picture in one place. Your invoices have all your payments and transactions.

To get started, you'll need to make sure you have Xero accounts for each Justworks invoice category listed below. These should be set up directly in Xero. Once you've done so, just click the button below to connect.

Linking your Xero account to Justworks

In your Justworks account, navigate to "Invoices" located under “Payments”

From your Invoices, click “Accounting Integrations,” then “Set up Xero”

A list of Justworks invoice categories will appear. You'll need to make sure you have Xero accounts in your Chart of Accounts for each Justworks invoice category. You can use the same Xero account for multiple invoice categories. Once you've made sure you have your accounts set up in Xero, click the Xero logo to connect.

Enter your Xero account information in the pop up window, and click “Authorize.”

Map each invoice category to the to the appropriate Xero account that appears in the dropdown. Click “Save.”

Please note that your connection to Xero will only last for a limited period of time. You'll be asked to reconnect to Xero once your connection expires.

Once your information is saved, click “Send to Xero” next to each invoice you’d like to sync to your Xero account.

Invoices will create draft bills in your Xero account, so make sure to login to your Xero account and click “pay bill” to complete the sync

Justworks - QuickBooks Desktop Integration

You can also upload IIF files into your QuickBooks Desktop account from Justworks invoices.

First, you’ll need to set up QuickBooks Desktop Settings. You can do so from going to your Invoices Page, hovering ‘Accounting Integrations,’ and selecting ‘QuickBooks Desktop Settings’.

From the next screen, you’ll need to enter an account from your QuickBooks Desktop Chart of Accounts to match to each Justworks pay type. Each account you enter must exactly match the name of an account that Chart of Accounts, so it’s important to be extra careful here.

Once you have those settings saved, you’ll be able to download IIF files that you’ll be able to upload to QuickBooks Desktop. Go back to your Invoices tab and find the invoice you’d like to upload.

From the top right of the page, you’ll see ‘QuickBooks IIF’, and see the option to download the file for the 2019 and later versions or the 2018 or earlier versions of QuickBooks Desktop.

You’ll be able to upload the file type that you select directly into your QuickBooks Desktop account.

IMPORTING YOUR IIF FILE INTO QUICKBOOKS DESKTOP

In Quickbooks, go to File > Import

Quickbooks may require you to create a backup, simply click OK and confirm the back up.

Then select > From IIF Files, and click on the file you just downloaded from Justworks. The file name will look like this ---> justworks_invoice_[date].iif

Once your data has been imported, select > OK

That's it - your information is mapped to your accounts in Quickbooks!

View the updated Justworks information in QuickBooks

For an overall view: From the Quickbooks homepage, go to Lists > Chart of Accounts. Here, you can view the overall import from Justworks, and you will see that the money has been debited from the proper accounts.

For a detailed view: From the Quickbooks homepage, go to Reports > Company and Financials > Balance Sheet Standard. You will be able to drill down into the specifics of how the money has been allocated, and to which accounts.

NOTE: Wages, Employer Taxes, Insurance, and Fees will all be imported in aggregate. Contractor Payments and Expense Reimbursements are reported in detail, with each payment broken out into its own line item.

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.

This article addresses specific compliance issues and certain key documents for terminating employees in the State of New York. If you'd like to know how to terminate an employee within Justworks, please visit Terminating Employees.

New York law requires that employees be paid their owed wages by the next regularly scheduled payday for the pay period worked. This applies to both voluntary and involuntary terminations, with or without notice. If requested, the employer must mail the final wages to the employee’s designated address.

Whether an employer must pay for unused time depends upon the terms of the vacation and/or resignation policy. An agreement to give benefits or wage supplements, like vacation, can specify that employees lose accrued benefits under certain conditions. To be valid, the employer must have told employees, in writing, of the conditions that nullify the benefit. If an employee has earned vacation time and the employer has no written forfeit policy, then the employer must pay the employee for the accrued vacation.

New York requires employers to provide a written termination letter to employees, regardless of whether the employee’s termination was voluntary or involuntary. The letter must state the date of termination of employment, and the date of termination of benefits. This letter must be provided within 5 working days after the employment relationship has ended.Additionally, employees who are terminated voluntarily or involuntarily are also required to be provided with the NY DOL Record of Employment upon termination. Administrators can find this document directly in their Justworks account, under HR > Documents > Compliance documents.

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.

1099

How do I access my 1099 or W-2?

Employees/Contractors:Employees and contractorscan access their end-of-year tax documentsby logging in to their Justworks account and looking at the 'Documents' tab on the left side of the dashboard. Your employees who have been terminated from Justworks will still be able to access that tax information and payment history.

Those who are scheduled to receive W-2s will also have the option to opt out of receiving a physical W-2, and have it simply uploaded to their Justworks account. They can select thisoption directly in their Justworks account by going to Account Settings, and selecting 'Paperless W-2' under the Finance section.

Vendor:When you login to your account, navigate to your Customers. Once in the customer profile, you’ll be able to view your 1099.

Please note:Tax documents will be issued via mail and made available online in your documents by the end of January each year. You'll receive an email once your W-2 or 1099 has been distributed.

Learn about how to read your W-2 or.

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.

As a PEO, Justworks e-files various federal, state, and local states in the aggregate under our EIN. Because we file in the aggregate, we must keep our specific filings secure, as they contain information for all of Justworks' customers. Still, Justworks customers can access key tax filing information by using our payroll reports. This page provides guidance on how administrators cannavigate our reporting to obtain information on important tax filings.

Forms 940 and 941

Using our reporting, you can access employer and employee tax information that would be found on federal Forms 940 and 941. Form 940 is filed on an annual basis to report Federal Unemployment Tax Act (FUTA) taxes.Form 941is filed on a quarterly basis to report:

Wages you paid

Tips your employees reported

Federal income tax withheld

Both the employer’s and employee’s share of Social Security and Medicare taxes

Current quarter’s adjustments to Social Security and Medicare taxes for fractions of cents, sick pay, tips, and group-term life insurance

Qualified small business payroll tax credit for increasing research activities

You can follow the below steps to find information relevant to Justworks' filing of Forms 940 and 941 in the Payroll Report:

Navigate to Company> Reports, and select the new payroll report

When selecting the date range, input for the dates in question.

You may also want to apply advanced filters. Here, you should only include those who earn W-2 wages, and exclude member types such as contractors, unpaid owners, non-US employees, and temps.

You may also select or de-select your different offices or departments. Furthermore, keep in mind that the Member Status filter pulls information as of the current member state, if you’re looking to separate out former employees.

Once you have the filters set to your preferences, hit the ‘Apply’ button towards the top right corner of the page.

In order to break down more specific information, download the ‘Detailed’ version of the Payroll Report.

From that download, you’ll be able to find information regarding Employee and Employer Tax contributions, and whether they’re on the local, state, or federal level. You’ll be able to gather the relevant information for federal filings and delete the columns that refer to state or local contributions.

State/Local Income Tax Withholdings; State Unemployment; Other State/Local Taxes

If you are looking for information on state and local income taxes, state unemployment, or other state/local taxes, you can follow almost all of the steps on the process outlined above. Upon downloading the report, you will have to delete federal tax information (federal income tax, FICA, and FUTA) in order to isolate the information relevant to state and local filings.

Getting Started

This is my first time enrolling. Help!

We're happy to!Make your way to our all-in-one Resource Center for any open enrollment questions you may have.

How long will it take to process my enrollment and when will I receive my ID card?

You can expect your plan enrollment to process in 48-72 hours. Once processed, you may access a digital ID card via your carrier's website and/or mobile app (see more below). Physical ID card shipment and availability is subject to the carrier and your enrollment date.

Aetna: Physical ID cards will ship within 5-10 business days from the date your enrollment is processed in Aetna. You may download and print a temporary card via your Aetna account. Member WIDs are also listed in the “Benefits” section of each employee’s Justworks account.

Lastly, if looking to access a digital version of your ID card, the Aetna Health app is available for iPhone and Android. Once you've registered for an account (same credentials as your Aetna online account), your home dashboard will show your WID number, along with an arrow to access your digital ID card.

UnitedHealthcare: Physical ID cards are set to ship to your home address prior to your effective coverage date. You may view and print ID cards once logged in to your myuhc.com account. If you need a new ID card, navigate to "Help" then "How do I get a replacement ID card?". You will be able to request a replacement card for yourself and any dependents you may have on your plan.

MetLife & Aetna Dental: Dental cards are not provided by the carrier. Use your social security number to provide proof of coverage.

Kaiser Permanente:Digitial ID cards are typically available prior to your effective date if you enrolled by the 15th of the month prior to coverage. Physical ID card availability is similar, is subject to your enrollment date, and is based on when the enrollment is received and processed by Kaiser.

You will receive physical ID cards for each family member enrolled. Only four ID cards can be sent in a single envelope, so if your plan has 4 or more members enrolled, you will receive two or more envelopes with the ID cards.

Plan Structure & Administration:

How can I tell if my doctor is in-network?

First, find the plan or network at the top of each plan details PDF in Justworks. Your current network is also listed in the “Benefits” section of your Justworks account.

Then go to the relevant provider website to see if your provider is "in-network" for the plan you selected. Links to each carrier's "Find a Doctor" website are below:

Aetna

UnitedHealthcare

Kaiser Permanente

What happens to my deductible?

If an employee switches plans with difference deductible amounts during the open enrollment, the total amount previously paid towards their deductible this calendar year (January 1st - October 31st) will be credited toward the deductible on their new Aetna plan effective November 1.

For example, if your employee is enrolled in a plan with a $3000 deductible and has already paid $1500 toward the deductible, that $1500 would be carried over toward the deductible of their new plan.

If the employee then enrolls for a plan with a $2000 deductible during open enrollment, this would mean the employee has only $500 left to reach the deductible.

All deductibles accumulators refresh on January 1, as they run on a calendar year basis. In this example, the employee deductible accumulator (or what they’ve paid toward it) would restart at $0 as of January 1, 2020. The employee would have to reach the new $2000 deductible starting from $0 before coinsurance applies in 2020.

What is a waiting period?

A waiting period is the length of time that a new employee must satisfy before becoming benefits eligible and enrolling in insurance benefits upon joining a company. Justworks plans can include a 0-day, 30-day, or 60-day waiting period.

Employee's health insurance coverage can only start on the 1st of the month, so it's important to note that once an employee's waiting period is completed, the coverage for the plan they select in open enrollment will be effective the 1st of the month following their benefits eligible date.

Ex. Start date is September 9, with a 0-day waiting period. An employee will have from September 9th - October 9th to complete enrollment, with their coverage becoming effective October 1st.

Read more about waiting periods here.

Who can be a dependent?

Dependents include a spouse and children, as well as domestic partners if you provide the proper documentation.

What’s the difference between a copay and coinsurance?

A copay is the dollar amount an employee has to pay for a specific type of service or visit, regardless of its cost, before the deductible is met. Co-insurance is the percentage of costs that a provider will cover once an employee satisfies their deductible. (For more information about health insurance terms, you can check out our Health Insurance Glossary ).

When is FSA open enrollment?

FSAs are based on the calendar year, from January 1st to December 31st. If the benefit is available to you, open enrollment will occur in December for the following year. We'll contact you to let you know when open enrollment is beginning!

If you're currently enrolled in an FSA, be sure to use your funds before the end of the year, as they are "use it or lose it!"

What is an HSA?

A Health Savings Account is a pre-tax savings account for employees who are enrolled in a High Deductible Health Plan. Those who are enrolled in HDHPs will be able to contribute towards HSAs immediately once their plans are active. Learn more about HSAs.

When will my benefits be effective?

Benefits for new employees become effective on the first of the month after enrollment is opened, even if enrollment is opened on the first of the month. For example, if a company with no waiting period welcomes a new employee on 9/15, the employee’s benefits will be effective on 10/1. If the company had a 60-day waiting period, enrollment for this employee would open on 11/15, and benefits would be effective 12/1.

After the annual open enrollment period for all employees, any changes in coverage become effective on November 1.

I have questions about specific medical services, procedures, claims, or costs. Who can help me?

Employees with specific questions related to these topics should reach out to their carrier directly or Health Advocate. Health Advocate is a third-party resource who can help answer questions about plans, claims, and provide help for finding specialists who accept your insurance. This service is available at no cost to anyone enrolled in a medical insurance plan through Justworks. The topics listed above typically involve “Protected Health Information” and can only be discussed with a HIPAA-compliant resource.

Aetna Member Services: 888-982-3862 | UnitedHealthcare Member Services: 866-414-1959 MetLife Member Services:800-942-0854 |Health Advocate: 866-799-2728 or [email protected]

How can I tell if my medications are covered?

Good news! Your carrier has online tools for coverage, pricing, pharmacy search, etc.. You can find more information on how to Find a Medication in our Help Center article.

Making Changes:

Will I receive a new medical/dental/vision card each year? Will my Member ID change after annual open enrollment?

Employees will maintain their same Member ID each year so you will continue using your existing medical and/or vision card. If you need a replacement card, you can access a copy through the relevant provider's website:

I’m having trouble enrolling in the open enrollment opportunity in Justworks. Who can help me?

Please contact Justworks Support at [email protected] or 888-534-1711 and we’ll be happy to help out!

Insurance Billing

The employee's insurance deductions occur in themonththey are receiving insurance coverage.

Those on a semimonthly pay frequency will see their medical, dental, and/or vision deductions split evenly over their two regularly scheduled paychecks in any given month.For example,if both the 15th and 30th of April fall on normal business days, thefirst half will be deducted ontheir April 15th paymentand the second half will be deductedontheir April 30th payment.

Since employees who are paid on a biweekly pay frequency are paid twenty-six times per year, and not twenty-four, there will be certain months in which they are paid three times. In the event that thereare 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 paycheckafterthe 15th of the month.

Lastly, 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.

To summarize, the employer pays the full cost of insurance up front duringthe month prior to coverage and the employees contribute during themonth theircoverage is active.

WageWorks Billing

Your commuter benefit from WageWorks will be billed on the second pay-cycle of the month. The total amount is deducted based on the plan for which you enroll. For pre-tax, your gross pay is deducted the amount of the plan and then taxes are applied to the remaining gross amount.

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.

What is a beneficiary?

In the context of Justworks, a beneficiary is any person or entity who is eligible to receive distributions from a life insurance or accidental death and dismemberment (AD&D) policy in the event of the policyholder’s passing.

If you have a Basic Life, Basic AD&D, Supplemental Life or Dependent Supplemental Life policy with Justworks, you can addmanage beneficiaries in Justworks.

How do I add beneficiaries?

To add beneficiaries, navigate to your Benefits and then Ancillary Benefits. On the top right corner of each eligible ancillary benefit (Basic Life, Basic AD&D, Supplemental Life or Dependent Supplemental Life), you will see a link that says ‘Add Beneficiaries.’

That link will take you to your policy’s beneficiaries. On this page, you’ll be able to add both primary and contingent beneficiaries to this specific policy.

If I have multiple policies, do I need to add beneficiary to each one?

Yes. The beneficiaries of each policy are independent from each other. Please visit each policy individually and add beneficiaries for each policy.

Why can’t I add beneficiaries to my Short-Term Disability and Long-Term Disability policies?

With Short-Term Disability and Long-Term Disability, the benefits are not tied to your passing. The benefits for these policies are tied to you becoming disabled and you will be the beneficiary of these benefits for these policies.

What’s the difference between a primary and a contingent beneficiary?

Primary beneficiaries are the first people or entity to receive the benefit payout in the event of your passing. If all primary beneficiaries have passed, then your contingent beneficiaries will receive the benefit payout. If you name your estate a primary beneficiary, you cannot designate a contingent beneficiary.

Can I change my beneficiaries at any time?

Yes, you can update your beneficiaries at any time. Just visit your Benefits in Justworks and then click on the appropriate policy to update your beneficiaries.

What happens if my primary beneficiary passes away before me?

If you have a primary beneficiary who predeceases you, the benefits will go to the next beneficiary on your list. If you have other primary beneficiaries, the share of the predeceased beneficiary will be split evenly among the remaining primary beneficiaries.

If you did not designate additional primary beneficiaries, then the benefit will be given entirely to your contingent beneficiaries.

What happens if I don’t add a beneficiary?

This varies depending on the type of policy you have.

For Basic Life and Basic AD&D insurance, your employer will receive this benefit on your passing. We highly encourage you to add a beneficiary now, even if it is just your estate.

What are the differences between the beneficiary types?

There are five different types of beneficiaries you can add to your policies: Person, Estate, Testamentary Trust, Living Trust and Charity.

Person:A person is any individual. If you’d like to leave the proceeds of your policy to specific individuals, you will need to provide identifying information such as their name, social security number, address and telephone number.

Estate:An estate is all your goods and assets at the time of death. If you leave your policy to your estate, then it will be divided according to your will or by law if you fail to write a will. If you designate your estate as the primary beneficiary, you cannot add a contingent beneficiary since there is no scenario where your estate will not exist at the time of your death.

Testamentary Trust:A testamentary trust goes into effect upon an individual's death and is commonly used when someone wants to leave assets to a beneficiary, but doesn't want the beneficiary to receive those assets until a specified time. If you leave your policy to a testamentary trust, the proceeds from your policy will follow the instructions in your will.

Living Trust:A living trust is a property interest created during a person's life that allows easy transfer of assets without going through the process of probate. A living trust is an agreement where the trustee holds the legal possession of a fund or assets that belong to another person, the beneficiary, and it is created while the person is alive.

Charity or Organization:A charity, nonprofit, business or other organization that you’d like to donate the proceeds to. In order to pick this type, you will need to know the organization’s Employer Identification Number.

I added my Estate as a primary beneficiary. Why can’t I add a contingent beneficiary?

If you designate your estate as the primary beneficiary, you cannot add a contingent beneficiary since there is no scenario where your estate will not exist at the time of your death.

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.

What is One Medical?

One Medical is a top quality and service level doctors office that provides top-rated health insurance professionals to their patients. They pride themselves on dedicated doctor-to-patient time who have time to listen and make their patients a priority. With One Medical you can access:

Same- or next-day medical appointments that start on time

Direct email access to your provider

Online and mobile appointment booking, virtual care, and RX renewals

Quality healthcare professionals that take the time to listen

24/7 access to One Medical’s virtual medical team

On-site lab services

Why is Justworks offering this service?

Justworks is on a mission to make it easier for you to run your business and to make employees’ lives easier. As part of this mission, we are always looking to add features and benefits that we think will improve our users lives in meaningful ways.

One Medical will complement your healthinsurance by providing immediate access to top quality providers.

How much does One Medical cost?

As a Justworks member, you have access to One Medical at no extra cost or to your immediate family. Outside of Justworks, One Medical membership typically cost $199 per person per year.

How can I sign-up for my membership?

We’ve made signing up as simple as possible. In your Justworks account, simply navigate to Your Benefits and follow the link and access code provided to you.

Why does One Medical charge a membership fee?

To maintain their high-level quality and service, One Medical charges an annual membership fee. To make your experience the best it can be, Justworks covers this fee on your behalf.

How do I know if I have access to One Medical?

One Medical membership is available to all health insurance eligible employees at companies offering access to health insurancethrough Justworks, except for those in the Los Angeles area. One Medical does not accept HMOs in LA, effective 2/28/19.

Health insurance eligible employees are defined as full-time employees, owners, and part-time employees working over 30 hours per week. The easiest way to determine if you meet these criteria is to log in to Justworks and visit Your Benefits. You will be eligible for this benefit even if you decline health insurancecoverage through your company.

Can I add family members to my One Medical plan?

One Medical is available to you, your spouse or domestic partner, and your dependent children over the age of 14, regardless of whether they are on your health plan. Your dependents can sign-up with the same link and code provided to you through Justworks. When they create their account, they should select the option “Dependent” in the sign up form.

What if I already have a One Medical membership?

If you have signed up for your membership in the last 30 days, then you can contact [email protected] to arrange for a refund. If you signed up more than 30 days ago, then you will be able to apply the Justworks free membership at renewal. When your membership is 30 days away from expiring, One Medical will reach out and you’ll be able to enter your individual Justworks code at this point.

What kinds of medical care can One Medical help me with?

One Medical is a new and innovative approach to primary care. With numerous locations that focus on high-quality visits and a stronger doctor-to-patient ratio, One Medical helps with Family Care and Pediatrics, Women’s Health, Prenatal, Travel Health, and even your basics such as flu shots.

How much do One Medical consultations cost?

While Justworks covers the cost for membership, your insurance will be billed like a normal doctor visit and you’ll still be responsible for your co-pay and deductible. However, other services such as emailing your doctor or using “Treat Me Now” in the app are free of charge.

Does One Medical have a mobile app?

Yes. You can search for One Medical in the app store to download their free app and start scheduling appointments, picking up prescriptions or finding their nearest office.

What insurance plans does One Medical accept?

One Medical accepts all Justworks’ health plans and if you’re on Aetna with Justworks, your membership is completely free. In addition to our partnership, One Medical works with most insurance carriers such as Aetna, Anthem Blue Cross, Blue Shield, Cigna, Health Net, MulitPlan (PPO only), and UnitedHealthcare as well as Medicare. This means that you do not have to be enrolled in a Justworks provided insurance plan to access One Medical.

Can I visit One Medical offices in other cities?

Yes, you can visit any One Medical location in any city.

Should I sign-up for One Medical if there isn’t a practice in my city?

This is completely up to you. If you sign up, you will be able to use One Medical’s “Treat Me Now” service via their mobile app as well as access in person care once you’re in a city where they have a practice.

What do I do if I’m having issues with One Medical?

If you are having issues that pertain directly to your One Medical doctor, appointment or prescription, please contact One Medical directly at 415-523-6317. However, if you are having issues signing up for a membership, feel free to reach out to us at 1-888-534-1711 or at [email protected].

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.

Offering time off for days that don’t fall neatly into “vacation” or “sick” policies has become a popular option to allow more flexibility with work/life balance. Personal days used to be the solution to this, but we found this practice is no longer a best option since personal days are generally not seen or treated differently from vacation days for payout purposes under state law.

These policies and practices should be reviewed by your legal counsel for the states and localities in which your employees are working to ensure compliance with applicable laws, and to ensure that your policies and practices are appropriate to your particular situation.

Here are some popular options:

Floating Holidays

Allowing employees to use floating holidays for specific events like birthdays or religious holidays can allow them to take time off without dipping into another PTO bank. This policy can require the floating holiday to be taken on a specific day or within a narrow timeline. Learn more about floating holidays here.

Bereavement Leave

You’ll want to consider what types of relationships are eligible under the policy, the number of days, and if those days are per incident or per year.

Jury Duty

Certain states have specific pay requirements for employers, but all states require that employees be allowed to take time off when called to serve on a jury, or in other similar scenarios. If you are subject to such laws or you choose to pay during jury duty obligations, you can create a policy to coordinate and track this.

Volunteer Time

Incentivizing employees to do good through a separate volunteer time policy will allow them to consider volunteer opportunities without having to sacrifice vacation days. This can have other positive effects on morale and team building.

Leaves of Absence

A leave of absence is a type of extended time off -- usually a week or more -- granted to employees under specific circumstances. Leaves of absence may be paid or unpaid, and may work with or separately from other types of time off.

There are some federal and state laws surrounding qualifying leaves of absence. The Family and Medical Leave Act, for example, applies to most medium-sized employers and covers a few common leave scenarios. Check out the Justworks Compliance Starter Guide for applicable state requirements and this State Family and Medical Leave Laws chart from ThinkHR*.

Even where applicable laws do not require paid or unpaid time off, employers may elect to develop and institute leave policies for purposes, such as parental leave, sabbatical leave, or personal leave.

*Be sure you’re logged into your Justworks account with administrative permissions to access ThinkHR.

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.

Nobody ever said running a business was a walk in the park. As an employer, you have a lot of balls in the air, and compliance is just one of them. One really, really important one that, if dropped, could cost you a whole lot of money.

In addition to federal regulations, each state has their own share of employment related laws that business owners need to be aware of. Here, we’re highlighting some of these key state-specific requirements and laws, and offering guidance to help you keep up.

Bear in mind, this list is not comprehensive, and there may be local or industry-specific employment requirements that your business needs to comply with. It’s best to consult with counsel to ensure compliance with all applicable laws, as Justworks does not provide legal advice.

Onboarding Requirements for New Hires

In the state of Minnesota, employers are required to satisfy the requirements of the Wage Theft Law via the presentation of wage notices, templates for which are available for download on the state’s website.

Wage Theft Notice Requirements - Minnesota

Payroll Tax Accounts

Because Justworks reports state unemployment taxes on your behalf, you’ll need to provide us with some key pieces of information prior to joining our platform. See the link below for more on what information is required, and how to provide that information to Justworks.

Minnesota - State Unemployment Insurance

Paid Sick Leave

Minnesota does not presently have a statewide paid sick leave law applicable to private employers, but three cities Minneapolis, St. Paul, and Duluth have paid sick leave laws that are currently in effect or will go into effect in the near future for private employers.

Minneapolis Sick and Safe Time Ordinance

St. Paul Earned Sick and Safe Time Ordinance

Duluth Earned Sick and Safe Time Ordinance

Pay Requirements

Minnesota rules on overtime and minimum wage can be found at the corresponding links, with additional information found in the FAQs below.

Minnesota Dept. of Labor and Industry: Wages and Overtime FAQs

You can also find guidance for employers in Minnesota on a variety of employment practices topics here.

The localities in Minnesota, listed below, have a higher minimum wage than at the state level. Where both laws apply to an employee based on worksite, the law that favors the employee should be followed. Minimum wages in these localities are always changing, and this list is always growing. The very best way to ensure compliance with all applicable laws is to consult with legal counsel.

Minneapolis

St. Paul

Pregnancy and Parental Leave Act

Minnesota’s Pregnancy and Parental Leave Act, similar in many ways to the federal Family and Medical Leave Act (FMLA), provides up to 12 weeks of unpaid, job-protected leave to eligible employees working in Minnesota for a covered employer with 21 or more employees. Where FMLA applies, leave taken under the Pregnancy and Parental Leave Act will run concurrently with FMLA leave.

MN Dept. of L and I: Pregnancy and Parental Leave Act

Termination

In Minnesota, the final paycheck for employees who are terminated should be issued no later than 24 hours after termination.

Final paycheck for Minnesota employees who resign should be issued on the next scheduled payday. However, if the payday is less than five days after the last day that the employee works, the employer can pay on the next payday or 20 days after the employee's last day of work, whichever is earlier.

MN Dept. of L and I: Employment termination

MN Dept. of Employment and Economic Development: How to file a claim for unemployment insurance benefits

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.

Nobody ever said running a business was a walk in the park. As an employer, you have a lot of balls in the air, and compliance is just one of them. One really, really important one that, if dropped, could cost you a whole lot of money.

In addition to federal regulations, each state has their own share of employment related laws that business owners need to be aware of. Here, we’re highlighting some of these key state-specific requirements and laws, and offering guidance to help you keep up.

Bear in mind, this list is not comprehensive, and there may be local or industry-specific employment requirements that your business needs to comply with. It’s best to consult with counsel to ensure compliance with all applicable laws, as Justworks does not provide legal advice.

Payroll Tax Accounts

Because Justworks reports state unemployment taxes on your behalf, you’ll need to close your Connecticut State Unemployment and Withholding accounts prior to joining our platform. Here are the steps to do that.

Connecticut - State Unemployment Insurance

Family & Medical Leave Act

Connecticut law provides up to 16 weeks of unpaid leave in a 24-month period for eligible employees at an employer with 75 or more employees for certain family- and health- related reasons, such as the birth of a child or to tend to a close relative’s serious health condition.

Connecticut General Assembly: Family & Medical Leave Act

Paid Sick Leave

Under Connecticut’s Paid Sick Leave law, employers must provide up to 40 hours of sick leave annually for their employees and are required to display a notice (linked below) that details employee rights under the law for employees to view.

Department of Labor: Paid Sick Leave

Pay Requirements

Connecticut rules on regular pay days, minimum wage, and exempt salary thresholds can be found here.

Connecticut Pay Requirements

Termination

In Connecticut, the final paycheck must be issued by the business day following termination if the termination is involuntary. For a voluntary termination the final paycheck may be issued on next regularly scheduled payday.

Additionally, the unemployment insurance packet must be provided to all separating employees, regardless of the reason for leaving. Employers must complete Form UC-61, “Section F - Unemployment Notice” before providing the packet to the employee. You can access the form here.

Department of Labor: Connecticut wage payment law

Pay Parity

Connecticut employers are forbidden from asking prospective employees about past wages and compensation histories at any point during the hiring process, among other requirements. The law is intended to help remedy the pay gap between men and women.

"An Act Concerning Pay Equity"

Harassment and Discrimination

Connecticut requires employers with three (3) or more employees to provide two hours of sexual harassment prevention training to all employees. All employees must be trained within six months of hire.

Employers in Connecticut with fewer than three (3) employees must provide two hours of sexual harassment prevention training to all supervisory employees. Supervisors must be trained within six months of taking a position as a supervisor.

CT Department of Labor: Regulation for Sexual Harassment Posting & Training

CT Department of Labor: Sexual Harassment Prevention Resources

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.

Under Rhode Island’s Sick and Safe Leave law most employees who perform work primarily in Rhode Island for private and nonprofit employers are entitled to accrue paid time off that can be used for the sick and safe purposes described by the law. Employers must either:

Allow employees to accrue at least one (1) hour of paid sick leave per thirty five (35) hours worked, or;

Grant the maximum accrual hours up front.

Employers are not required to permit employees to accrue or use more than 32 hours of earned sick time in 2019 and 40 hours, starting in 2020, for any “benefit year” a designated period of 12 consecutive months. Employers must allow carryover, but are not required to allow the carry-over of more than 40 hours of earned sick time from one benefit year to the next.

Notice of Employee Rights

Employers need to display the Notice of Employee Rights in a location visible to all their employees in Rhode Island, and

give a copy of the notice to each worker, or

include the employer's sick time policy in any handbook or manual.

Uses of Paid Sick Leave

Workers may use earned sick time to care for themselves when they are too sick to work, are injured, or have a routine medical appointment. They may also use earned leave to deal with the impact of domestic violence, sexual assault or stalking. In addition, they may use earned leave to assist their child, spouse, domestic partner or other member of their household for the same purposes.

Limitations on Paid Sick Leave

Permissible waiting periods to use earned leave are 90 days for new employees, 180 days for temporary employees, and 150 days for seasonal employees.

Excluding very limited circumstances, employers cannot ask the reason for expending leave and are required by law to maintain employee confidentiality.

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.

Rhode Island's Temporary Disability Insurance and Temporary Caregiver Insurance programs are partial wage-replacement insurance plans for Rhode Island workers. These benefit programs are state-mandated and funded through employee payroll deductions and employer contributions.

Temporary Disability Insurance

Temporary Disability Insurance (TDI)provides partial wage replacement benefits to eligible Rhode Island workers who are unable to work due to pregnancy or a non-work-related illness, or injury. Employees must fulfill a 7-day waiting period before payments begin.

Temporary Caregiver Insurance a/k/a/ Family Leave

Temporary Caregiver Insurance (TCI) provides up to 4 weeks of partial pay to eligible Rhode Island employees who need to take time off work tocare for a seriously ill child, spouse, domestic partner, parent, parent-in-law or grandparent; or to bond with a newborn child, new adopted child or new foster-care child.

Filing a Claim

Claimants must apply for TDI benefits during the first thirty (30) days of the first day out of work, and for TCI benefits during the first thirty (30) days after leave is taken for reasons of Bonding or Caregiver.

By accessing the TDI/TCI website at www.dlt.ri.gov/tdi, claimants may apply online or download an application to complete and mail to TDI, P.O. Box 20100, Cranston, RI 02920. They may also call (401) 462-8420 AFTER 4pm and choose option 1. An application will be mailed to them.

Rhode Island has eliminated the payment of TDI/TCI benefits by paper checks. As such, claimants will have two different benefit payment options: Direct Deposit or Electronic Payment Card (EPC) which is similar to a debit card. Benefit payments are post-tax. You can read more about the payment information on the FAQ page.

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.

You'll need to verify your company's bank account

Before you can start making payments, you’ll need to verify your company’s bank account. Once you enter your account and routing number, Justworks will automatically send two small verification deposits to your business account labeled “JUSTWORKS VERIFY”. These deposits take approximately 2-4 days to show up in your account; you’ll receive an email notification on the morning that the deposits are available.

[email protected]

Once you’ve received the deposits, click Verify Bank Account on the dashboard and enter the amounts of the two deposits. Once you’ve done this, your bank account will be verified.

Additionally, there are some banks that require an authorization code in order for a debit to be approved. If the company bank account that you have entered into Justworks' requires that authorization code, please be sure to provide it to your bank before your first payroll runs.

Periodically, we may need to send your company a new authorization code as we update our payroll system. Don't worry- we'll make sure we communicate with you in the event we need to do so.

Processing generally takes 4 business days

Onceyou are approved for workers' comp, it generally takes 4business days for a payment to fully process. Please note that new companies may be subject to longer processing times and bank holidays will cause one day delays.

When you schedule a payment, you specify the pay date, which is the date that the funds will become available in your employee’s bank account. The processing date must be 4 business days prior to the pay date, depending on the timeline above. Business days include Monday through Friday but not bank holidays, so payments made during holidays will take longer to process. You can see upcoming bank holidays on the Justworks dashboard forecast calendar.

Your invoice specifies a 'pay date,' which is the day your employees will be paid

Invoice date: the date your company will get the invoice

Payment collection date: the date Justworks will deduct the money from your company's business bank account

Pay date: when your employees will have money in their personal accounts

Payments are processed at 2:00 pm Eastern time

The processing deadline is 2:00 pm Eastern time, on the invoicedate. Additionally, please keep in mind that at the time payroll processes, at least one admin of your account must have an SSN entered. If there's no admin with an SSN entered, payroll will not be processed, and off-cycle payments will have to be scheduled to make up for the skipped payment.

All funds are debited from a single account

Currently, all funds will be debited from a single account that you specified when you set up your company. You can view the bank account information by going toCompany > Settings.

Funds can be deposited into multiple bank accounts

Employees have the ability to split their payments between multiple bank accounts, up to ten. You can check out this article to learn how employees can set up splitting their paychecks between several bank accounts.

US payments to US-based employees only

Justworks sends payments only to bank accounts within the United States. All employees and contractors must work in the US and have a US mailing address, in order for us to mail W2s and 1099s and in order to be covered by workers' comp.

Electronic payments only

Justworks issues payment via direct deposit. Justworks does not issue paper checks. If one of your employees does not have a bank account, they may consider getting an American Express Bluebird account, which they can use to accept direct deposits.

An employee's salary will not be auto-paid until their first full pay cycle

Read more about how salaried employee's first payments are handled.

Contact Justworks support to make an urgent final payment

All payments to your employees need to be processed through Justworks in order to ensure accurate taxes. However, in cases where your state requires a physical check on an employee’s last day, contact us atfor information about how you can write a paper check directly from your company’s account and have Justworks collect the appropriate taxes.

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.

Overview

Wondering whether an existing or new prescription is covered under your insurance plan? Good news! Your carrier has online tools for coverage, pricing, pharmacy search, etc. See below for the relevant links.

Aetna

Find detailed information on prescription coverage in the plan details PDF for each plan. Use Aetna's Find a Medication tool tofind a specific drug and its price under your plan found on both Aetna's wesbite and the Aetna Mobile app!

On Aetna's wesbite, when prompted to choose your Plan Year and Plan Type, you may use the following:

Under "Choose Your Plan," select the year the plan starts (2018-2019 is the current plan year).

For "Choose A Plan," select "Value Plans." This is the Plan stated in the pharmacy section of our 8-page.

UnitedHealthcare

OptumRx is the pharmacy care services manager for the plans. You can search for pharmacies using this link.

UnitedHealthcare also provides a,whichis a list of commonly prescribed medications covered by the plan.Medications are put into tiers that determine their cost.

Once you've registered for a myuhc.com account, navigate to "Pharmacies & Prescriptions" where you'll be able to manage any existing prescriptions,order refills, get drug cost estimates and find ways to save on your medications.

Use theHealth4Meapp to enroll for home delivery, find pharmacies, refill prescriptions/set reminders, estimate and compare medication costs, and/or search the plan's PDL!

Kaiser Permanente

Kaiser Permanente uses what is called a formulary to list the medications covered by their plans.Kaiser Permanente's formulary can be found on their website under "Health & Wellness" or by clicking.

What is a formulary? The formulary is a list of drugs that have been approved for members by Kaiser Permanente's Pharmacy and Therapeutics Committee. Doctors and other clinicians use the formulary to help determine the safest, most effective drugs to prescribe for members.

Note: Members should ensure they're selecting their region prior to searching a drug in the Lexicomp tool.

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.

First things first, how can I find out if my doctor is in network?

Visit the Aetna Find a Doctor site to find out if your provider accepts your Aetna insurance plan.

Does Aetna have an app?

You may download the Aetna Health app for iPhone or Android.

With the Aetna Health app, you can:

Pull up your ID card whenever you need it

See benefits and coverage details specific to your plan

Track spending and progress toward meeting your deductible

View, filter and pay claimsfor your whole family

Find in-network providers near you and search by location or specialty

Compare cost estimates for doctor visits and procedures

Receive personalized recommendations to help improve your health

What is open enrollment and how does it affect me?

Open enrollment is the designated time each year when you can enroll in benefits. Employees have two open enrollment opportunities each year: 1) when they join the company and can select their initial plan and 2) when the company’s Aetna policy renews in November. Unless a qualifying event occurs, open enrollment is the only time an employee can enroll in benefits.

What is a qualifying life event?

A qualifying life event is a change which enables employees to enroll in benefits outside of open enrollment. A qualifying life event would include one of the following situations: 1) marriage / domestic partnership, 2) divorce or separation, 3) birth or adoption of a child, 4) loss of previous coverage, 5) moving (this is not a guaranteed event, please contact [email protected] for more information on what qualifies).

When you have a qualifying life event, you can make updates to your benefits coverage by submitting proof of the QLE within 30 days of the event.

I want to add a dependent to my coverage. How can I do that?

Dependents must be added to your plan during open enrollment unless there is a qualifying event. If a qualifying event does occur, simply navigate to your Benefits and select the “Change coverage” button to signal that you need to add a dependent to your plan.

I want to change my plan selection. How can I do that?

You can change your plan if you’re still in open enrollment or if you have a qualifying life event. In either of these cases, please reach out to [email protected].

I missed my open enrollment period but now would like to enroll. Can I sign-up at any time?

You can only enroll in benefits during open enrollment or if you have a qualifying life event, otherwise you’ll need to wait until the next open enrollment period.

I want to cancel my coverage. How can I do that?

In order to cancel your benefits outside of the open enrollment time, you will need a qualifying life event.

I have to file a claim with Aetna. How can I get started?

You can file a claim directly through your Aetna profile. Navigate to aetna.com and register for an account. From there, you can click “claims” or “Ask Ann” to get more information. If you prefer to mail in your claim, refer to the back of your ID card for the claim mailing address

On the claim forms, the employer should be listed as Justworks:

Justworks Employment Group LLC

130 7th Ave #249

New York, NY 10011

How can I best reach Aetna?

You can reach out to Aetna Member Services by calling 1-866-208-5994

How can I learn about the details of my plan?

To learn more about your plan, navigate to Benefits on the left navigation bar in Justworks. From there, you’ll be able to see your various plans (medical, dental, vision, etc) and you can click “View plan” to find more details on each plan.

How do I find out how much I’m paying for health insurance each month?

To find your monthly insurance cost, navigate to your Benefits. You’ll then be presented with each benefit for which you’re enrolled as well as each monthly cost.

Can I make changes to my coverage throughout the year?

Once you select a plan and coverage is effective, you cannot make changes unless it is due toa qualifying life event.

I did not get an opportunity to enroll in health insurance, but I think I’m eligible. What do I do?

If you believe your company should be offering you benefits, give us a call or email [email protected]. We’ll do what we can to make sure you’re all set and covered.

What are the eligibility requirements for health insurance?

An employee must be classified as “full-time” or “part-time” working 30+ hours per week in order to be eligible for health insurance in Justworks. Contractors are not eligible for health insurance.

When will I have a chance to change my plan selection?

You can change your plan if you have a qualifying life event or when open enrollment occurs for your company.

What is a deductible?

A deductible is an amount you must spend before your insurance begins to pay claims. Member cost sharing for certain services, as indicated in the plan, are excluded from charges to meet the deductible. Pharmacy expenses do not apply toward your deductible.

What is an out of pocket maximum?

An out of pocket maximum is the most you have to pay for covered services in a calendar year.

What is co-insurance?

Co-insurance is the percentage of health insurance expenses you pay after you’ve met your deductible.

What is a co-pay?

A co-pay is the amount you are responsible to pay for a doctor’s visit after you’ve met your deductible.

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.

What is a1099?

IRS Form 1099-MISC is issued from a business to a contractor and will report all amounts paid to that contractor. A 1099 is only issued if the contractor has received over $600 in the taxable year. This is what it looks like:

What Do I Do With My 1099?

You will receive your 1099 either by mail, directly in your Justworks account, or both. The electronic and paper copies will be identical and either can be used to file your taxes.

What Does Each Box Mean?

Box 1:This box reports rental payments of at least $600 for an office space or equipment rentals.

Box 2: This box reports royalties in excess of $10.

Box 3: This box reports other types of payments which are not considered wages, like prizes or awards.

Box 4: This box reports the amount of federal income tax withheld.

Box 5: This box reports fishing boat proceeds.

Box 6:This box is for payments providing healthcare services made in the course of trade or business over $600.

Box 7:This is most likely the box that will have the most relevant information. Any non-employee compensation, which includes money paid to you as an independent contractor, in excess of $600, will be reported in this box.

Box 8:This box reports substitute payments in lieu of dividends or interest.

Box 9: This box reports proceeds from the sales of consumer goods.

Box 10: This box will be populated if you’re a farmer that received crop insurance proceeds of $600 or more paid by an insurance company.

Box 11: This will be blank.

Box 12: This will be blank.

Box 13: This box will be populated by any excess golden parachute payments subject to the 20\% excise tax.

Box 14: This box will be populated by gross proceeds totaling $600 or more paid to an attorney.

How Do I Find My 1099 in Justworks?

Log in to Justworks and click on “documents” in the left-side menu bar to find a PDF copy of your 1099.

I Lost My 1099. Can I Get Another Copy?

Unfortunately, we only issue one 1099 for each individual, but don’t worry, you can print off a PDF copy of your 1099 from your Justworks account.

My Company is an S-Corps or a C-Corp, Why Did I Receive a 1099?

Per the IRS, 1099s can be issued to S-corps and C-corps for certain types of payments, like attorneys fees or medical and health care payments. They may be required.

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.

What Is a W-2?

Form W-2 is anIRS tax form used to report wages, salary, and other compensation paid to employees and the taxes withheld from them. A W-2 will be issued to any full or part-time employee that receives a payment through Justworks. It will state the total amount of income received as well as all federal, state, and local taxes withheld. Each box on your W-2 will contain information that can be identified in the below list. Contractors, vendors, and owners that receive an owner’s draw willnotreceive W-2s from Justworks. This is what your W-2 will look like:

Form 4868

What Do You Have To Do With Your W-2?

You will receive your W-2 either by mail, directly in your Justworks account, or both, depending on whether you opted to only receive your W-2 electronically. The electronic and paper copies will be identical and either can be used to file your taxes.

What Does Each Box Mean?

Box a: Your Social Security Number

Box b: Your employer’s EIN (Since you’re a Justworks customer this will be Justworks’ EIN)

Box c: Your employer’s business address (This will also reflect Justworks' information)

Box d: Control number (This is for internal purposes and you won't need to do anything with this number)

Box e and f: Your full name and address (This is pulled from your account settings)

Box 1: Total taxable wages, tips, prizes, and other compensation. This doesnotinclude elective deferrals to retirement plans, pre-tax benefits, or payroll deductions.Note:Boxes 3 and 5 may contain different numbers than Box 1. This is OK and not an error.

Box 2: Generally, the total amount of federal income taxes and determined by the allowances, exemptions, and additional withholdings as indicated under “Finances” in your Justworks profile. (This is the same info as a Form W-4)

Box 3: Total wages subject to Social Security tax

Box 4: Total amount of Social Security actually withheld

Box 5: Total wages subject to Medicare taxes

Box 6: Total amount of Medicare taxes withheld

Box 7: Tips

Box 8: Allocated tips that your employer has distributed to you as income

Box 9: This is a verification code and one may or may not appear on your W-2.

Box 10: Total of any benefits paid on your behalf under a dependent care assistance program.

Box 11: Total amounts which have been distributed to you from your employer’s non-qualified deferred compensation plan.

Box 12: Various codes will populate this box such as payments related to employee 401(k) contributions, employee 501(c)(18)(D) tax exempt organization plan, non-taxable portion of sick pay, cost of employer-sponsored health coverage, employer contributions to an HSA, and more

Box 13: This is three boxes in one and will indicate if you’re a statutory employee, if you participated in your employer’s retirement plan (i.e. 401(k)), or if you received sick pay under a third party insurance carrier

Box 14: Anything not included in another box

Box 15: Your employer’s state and state tax ID number (This will reflect Justworks' information)

Box 16: Total amount of taxable wages for state taxes

Box 17: Total amount of state income taxes withheld

Box 18: Wages subject to local, city, or state income taxes

Box 19:Total local, city, and state income taxes withheld

Box 20: Name of the local, city, or other state tax being reported in Box 19

NOTE: If you earned W-2 wages in New York State at any point in 2019, the line item for New York State in box 16 will match box 1 on your 2019 W-2. This will not impact the amount of state taxes that were actually withheld during the year. The amount of state income tax that was withheld will be reflected in Box 17.

Why Does My W-2 List Justworks as My Employer?

Don’t panicthis is correct! As a Professional Employer Organization (PEO), Justworks reports taxes on behalf of your company and will therefore be listed as your employer on your W-2.

How Do I Find My W-2 In Justworks?

Log in to Justworks and click on “documents” in the left-side menu bar to find a PDF copy of your W-2.

Do I Need to Receive a Physical W-2?

No! If you plan to e-file your taxes and won't require a physical copy of your W-2, you can opt out. Simply go to the Finance section of your Account Settings, and select 'Yes' next to 'Paperless W-2.' Once your W-2 is ready, you'll see it in your Documents section.

What Do I Do If I See An Error On My W-2?

If you notice any errors with your W-2 let us know and we will issue you with a W-2C, which is a corrected version of your W-2. Use your W-2C rather than your old W-2 to file your taxes as it will contain the current and correct information. If you don’t let us know of any errors before March 27, 2020,we may not be able to get you a corrected copy before tax day. Please keep in mind, it may take up to 2 weeks for us to issue a W-2C after you request it. Also, it's possible for you to request an automatic extension of time () and you will be granted an additional six months to file your taxes.

If an employee worked for more than one Justworks company in 2019, will they receive 2 W-2s?

As we’re a PEO, we’ll only issue one document for employees who worked for multiple Justworks companies. All of the relevant information will be on that form.

I’ve Lost My W-2. Can I Get Another One?

Unfortunately, we’re only issuing new W-2s if there is a correction that needs to be made, but you can print out a PDF of your W-2 from your Justworks account.

What If My Address On My W-2 Is Incorrect?

It's ok if the address on your W-2 does not match your current address. When you file your taxes, the different state and local amounts will be rectified. If you have moved to another state, please reach out to your account manager or support so we can look into issuing a corrected W-2. If you're still employed through Justworks, please update your address in your profile to correct your taxes moving forward.

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.

Overview

Health Advocate is the nation’s leading healthcare advocacy and assistance company, serving some of the nation’s largest companies and more than 40 million people. Health Advocate provides unlimited, confidential access to a dedicated consultant (known as a Personal Health Advocate) to help you resolve healthcare and insurance-related issues.

Do I need to sign-up for Health Advocate or activate my membership before I use it?

No, you do not need to sign up for Health Advocate. If your company is offering Aetna health plans through Justworks, you automatically have a Health Advocate membership and you can access the service by dialing 1-866-799-2728 or emailing them at [email protected] asked for the associated company, you can tell them Justworks or the name of your company.

While signing up for an account is not a requirement to utilize Health Advocate, there are many advantages to registering for an account on the Health Advocate website and downloading the app on the App Store or Google Play. Here are just a few:

Instantly upload documents and forms, and view the status of your open cases

Care recommendations based on your claims data

Live Support -Your Personal Health Advocate and Wellness Coach are standing by to provide personalized help.

View alerts for health screenings and tests to help keep you on track.

Sync your activity trackers including Apple Health Kit, Samsung Health, and many more

Access to a wealth of Employee Assistance Program related resources

Tip: During registration, when prompted to enter your organization, use Justworks Employment Group.

When can I contact Health Advocate?

Health Advocate is available 24 hours a day, 7 days a week. If you are having a medical emergency, you should contact 911 instead.

How does it work?

During your first call, you will be assigned a Personal Health Advocate who will begin helping you right away. When asked for the associated company, you can tell them Justworks or the name of your company. Personal Health Advocates are typically registered nurses who are supported by medical directors and benefits and claims specialists. They'll help cut through the red tape and get to the heart of your issue. Personal Health Advocates can assist you with issues, such as:

Finding and booking specialists,

Helping you to select which health insurance plan is right for you,

Understanding how certain types of care are covered under your plan,

Finding eldercare,

Filing and negotiating claims,

Negotiating fees for non-covered services, and more.

Does Health Advocate provide an Employee Assistance Program?

Yes, they do!In addition to helping navigate complex health issues, the following is offered by Health Advocate:

Mental Health Services

24/7 access to confidential counseling services through Health Advocate for a range of mental health needs. This includes unlimited use of the phone number and up to 3 in-person sessions with a local counselor at no additional cost.

Work/Life Services

Life happens. Health Advocate Work/Life services helps you manage it with access to legal services, child and eldercare, and financial planning.

Medical Bill Saver

Capture significant savings on medical and dental bills. For any bill that leaves you paying over $400, Health Advocate will attempt to negotiate it down on your behalf. This can include in-network and out-of-network.

Will Health Advocate provide on-site services?

Yes! Health Advocate will provide the following on-site services:

Grief Counseling

Health Advocate'slicensed, professional EAP counselors carefully listen, evaluate employees’ needs, and offer short-term counseling focused on coping strategies. Your employers may reach out to Health Advocate directly to help administer the counselor's on-site visit. To ensure all needs are met, employers may reach out to them at their EAP phone number:1-866-799-2728.

More coming soon...

Does Health Advocate cost me any money?

At Justworks, we know that navigating your healthcare and insurance can be tough and we’re on a mission to make it as easy as possible for employees. Justworks has partnered with Health Advocate to complement your Aetna health plans with a dedicated advocate to help you understand your coverage and get the most out of your benefits.

Digital access to Health Advocate is free for eligible Justworks members. Any on-site services will incur a fee. If you have questions, please don’t hesitate to contact our support team at [email protected],

Who is covered?

Health Advocate is available to all health insuranceeligible employees at companies offering access to health insurance through Justworks. Health insuranceeligible employees are defined as full-time employees, owners, and part-time employees working over 30 hours per week. The easiest way to determine if you meet these criteria is to log in to Justworks and visit Your Benefits. You will be eligible for this benefit even if you decline health insurance coverage through your company.

If you are eligible for Health Advocate, your spouse or domestic partner, dependent children, parents and parents-in-law can also access this benefit.

Can my family reach out to Health Advocate directly?

Yes. Your spouse or domestic partner, dependent children, your parents and parents-in-law, regardless of whether they are on your health plan, can all call Health Advocate for help. In order for your family members to access the service, they’ll need to share your name, the name of your company and their relationship to you.

Will my issues be kept private and confidential?

Health Advocate’s staff is specially trained to follow strict protocols that comply with all governmental privacy standards to ensure that members’ medical and personal information is fully protected. As with all health and assistance programs sponsors, your employer does not receive or have access to any of your confidential information.

Can Health Advocate help me with my dental questions?

Yes, Health Advocate assists with dental issues as well.

Who are the personal Health Advocates?

Personal Health Advocates are trained professionals, typically registered nurses, who have a number of years experience working in health insurance-related jobs. Health Advocate carefully screens their staff to make sure they have both the necessary professional credentials and communications skills to resolve your health-related issues swiftly and with compassion. For mental health services, Health Advocate requires a minimum of 5 years of post-licensure experience. For Medical Bill Saver, Health Advocate requires a minimum of 3-5 years of negotiating experience.

Can Medical Bill Saver be used for in-network bills?

Medical Bill Saver can be used for in-network and out-of-network bills. However some states do not allow negotiations on balances related to coinsurance, deductible, or copays. In those states, Medical Bill Saver cannot be used for those balances. Other states allow negotiations on all balances and are not restricted in this way. To find out if a particular bill can be negotiated under your state’s laws please call Health Advocate and they can advise you directly.

Medical Bill Saver can always negotiate on a non-covered service regardless of whether the provider is in-network or out-of-network. Medical Bill Saver can always negotiate on out-of-network balance billed amounts.

Can Medical Bill Saver negotiate on bills received prior to me becoming a member of Health Advocate?

Medical Bill Saver can attempt to negotiate on balances related to services that were received prior to HA going live.

Are there any co-pays or additional costs for the three in-person mental health sessions?

There are no co-pays or additional costs for the three mental health sessions after you have been referred to a provider by Health Advocate.

If I have already had three sessions for one mental health issue can I still have in-person sessions for a different issue?

The in person sessions are “per person, per issue, per year” so if it is truly another issue you will get 3 more sessions! Unlimited telephonic support is available as well at any time.

What type of issues can Health Advocate address?

Health Advocate staff serve as a liaison for clients with health insurance providers, insurance plans and other health-related community resources. This means they can address nearly any medical question and issue from finding primary care, specialist physicians and medical institutions to resolving claims and billing errors. Health Advocate also helps members access community resources, including senior care services that fall outside traditional healthcare coverage.

Will I be able to speak to the same person each time I call Health Advocate?

Yes. When you call Health Advocate for the first time, you will be assigned your very own Personal Health Advocate (PHA) who will remain with you until your issue is resolved. However, if you contact Health Advocate outside usual business hours and your assigned PHA is not available, your inquiry may be handled by other members of the staff.

Can Health Advocate make appointments on my behalf?

Yes, Health Advocate can make appointments on your behalf. If your condition requires an urgent appointment, your Personal Health Advocate can attempt to call your specialist or physician and schedule an earlier appointment.

Will Health Advocate help me fight a bill?

If you receive a bill that you would like to dispute, it is best to contact your health provider directly. However, if the bill is related to insurance coverage and you need further assistance, your Personal Health Advocate can review the bill on your behalf and, if necessary, contact the provider on your behalf to correct any errors.

Are there issues I should *not* call Health Advocate for?

You can call Health Advocate with almost any questions about your health insurance coverage, claims and medical bills. However, if you have a question about your health insurance premium billing or other billing issues linked directly to your paycheck, please reach out to our internal support team instead. You can reach Justworks at [email protected] or 1-888-534-1711.

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.

What is 401(k)?

A 401(k) is a type of retirement savings plan sponsored by an employer. It lets employees save and invest a portion of their paychecks either before taxes are taken out (traditional) or after taxes (Roth). The plan allows employees to save for their future without having to rely on an employer offering a pension. Additionally, employers may elect to match employee contributions towards their accounts.

Making the maximum annual contribution

The IRS has an annual contribution limit for anyone participating in a 401(k) plan. If you’re under 50, the maximum annual contribution amount for 2020 is $19,500 ($19,000 in 2019) and if you’re 50 or older, the maximum annual contribution amount for 2020 is $26,000 ($25,000 in 2019). Justworks automatically caps the limit so long as all of the contributions took place through Justworks payroll.

These limits are specific to employee contributions only, employer profit sharing and matching contributions are not included in this amount.

Keep in mind that the $19,500 ($26,000 age 50 and over) can be a mix of pre-tax (traditional) and/or after-tax (Roth) regardless of income threshold.

Please see this IRS article on contribution limits for more information.

What are the benefits of Justworks 401(k)

You're able to invest anywhere, including big fund managers like Vanguard and Fidelity.

You can choose the amount you’d like to invest, either a flat amount with each regular paycheck or a percentage of your salary.

You can choose where to invest your earnings into any of the offered mutual funds.

Employers have the option of matching your contributions to any degree they choose.

We take care of both pre-tax and after-tax (Roth) deferrals.

Saving for your future feels pretty great!

Justworks’ valued 401(k) provider is Slavic 401k

All companies on the Justworks platform can choose to have the Justworks 401(k) available to all their employees. There is a $350 annual fee imposed by our partner Slavic 401k that is charged to all companies that choose to participate. That fee is reduced by $39 for every participant that enrolls in the plan since participants are charged a $39 annual fee ($9.75 per quarter).

Here’s how to enable Justworks 401(k) and what to do if your company offers 401(k):

How to set-up 401(k) on Justworks via Slavic 401(k):

First, you would need to contact us to let us know you’re interested - you can reach us any time at [email protected] or (888) 534-1711.

We would then connect you with our 401(k) partner, Slavic401k, who would walk you through setting up the best plan for your company and how much (if any) your company will match of your employee’s contributions.

Everything is automated from there. We'll withhold the appropriate amounts, calculate the matching (if applicable), and send the funds to your employee’s 401(k) accounts!

How does an employee set-up their 401(k) on Justworks via Slavic 401(k)?

1. HEAD TO SLAVIC 401(K) AND CLICK "ENROLL"

401(k) benefits

2. ENTER YOUR SOCIAL SECURITY NUMBER AND DATE OF BIRTH

3. VERIFY AND CONFIRM YOUR PERSONAL DETAILS

4. CHOOSE YOUR CONTRIBUTION AMOUNT

5. IF YOU SELECT OTHER,CHOOSE BETWEEN ENTERING A DOLLAR OR PERCENTAGE AMOUNT AND WHETHER IT WILL BE PRE-TAX OR ROTH/AFTER-TAX

6. DECIDE WHETHER YOUR INVESTING PATH WILL BE "PORTFOLIOS" OR "SELF-DIRECTED"

7. DECIDE ON YOUR INVESTMENTS

8. SELECT YOUR BENEFICIARIES

9. REVIEW AND CONFIRM YOUR INFO

10. COMPLETE AN ONLINE SIGNATURE

11. ENROLLMENT CONFIRMATION

12. FINAL STEPS:

If your company chooses to provide 401(k) benefits, you’ll be told how much your company is matching (if applicable) and given directions to choose how much of your earnings you want to defer to your 401(k) - it could be either a flat amount with each paycheck, or a percentage of your salary.

You can also defer a separate flat dollar amount or percentage for any bonus and commission payments. To set this up, log in to Justworks and under Benefits select Retirement Benefits. Then click into “see details” on the Slavic card. You can view and edit your contribution rates from there.

As these changes can be applied directly on the platform, they will apply to the next payment that processes. We always recommend speaking with your admin to coordinate any contribution changes with any scheduled bonus or commission payments.

What to expect once you've enrolled

You will receive an email from Slavic401k prompting you to set up your login for their website portal. You may also simply follow the steps for a 'First time user' on slavic401k.com.

Everything is automated from there. We'll withhold the appropriate amounts, calculate the matching (if applicable), and send the funds to your 401(k) account!

Any issues experienced on Slavic 401k website, such as logging in, should be addressed to Slavic 401k Customer Support. You can reach them at: [email protected] or by phone at 800-356-3009 (9-7PM EST, M-F). Slavic401k: Contact US

When do funds appear in my Slavic401k account?

Justworks sends a payroll file to Slavic 401k every Tuesday capturing all contributions made during the week prior. Your contribution will typically appear in your Slavic401k account by the following Friday after payday.

Managing your 401(k) account

Any changes to your regular salary contribution must be made through Slavic401k and NOT Justworks. These changes may not be immediate and will depend on your company’s setup with Slavic. To make changes or to find out more about your plan, please use Slavic401k's online platform or contact them.

You can reach them at: [email protected] or by phone at 800-356-3009 (9-7PM EST, M-F). Slavic401k: Contact US

Can I change my 401(k) contribution level? Can I contribute $0?

Yes. Once enrolled, you can change your contribution level at any time, including contributing $0. You can also set a different contribution rate for bonus and supplemental payments while maintaining your contribution rate for regular salary and wage payments.

Any changes to your regular wage and salary contribution amount should be done through Slavic401k. We recommend that this is completed at least 5 days prior to receiving your regular payments. This is to help ensure the changes are picked up before the payroll processes at your company.

Changes specific to your bonus and commission payments can be done through Justworks. As these changes can be applied directly on the platform, they will apply to the next payment that processes. We always recommend speaking with your admin to coordinate any contribution changes with any scheduled bonus or commission payments.

Please note: You will not be able to make changes to your salary deferral election amount in your Slavic401k account until after the first contribution is made. If you wish to make the changes, please contact Slavic401k’s customer service.

Does the maximum contribution level include matching funds contributed by my employer?

No, employer matching funds do not contribute to the IRS regulated employee contribution maximum for that year.

What are the differences between IRA and 401(k)?

Individual Retirement Arrangements (IRAs) is an individually held retirement and investment account that you can open and make tax deferred contributions into while a 401(k) is a defined contribution retirement plan that is sponsored by an employer.

An IRA has different contribution limits that can be viewed here: IRS IRAs

Can I take out a loan against my 401(k)?

You are able to take loans against your 401(k) assets. Please contact Slavic401k for more information.

Slavic401k: Contact US

Should I roll over my previous 401(k) accounts?

That is totally up to you! Whatever you decide to do, keep in mind that your previous 401(k) account will still accrue fees while you will no longer be able to contribute to it. If you would like to get more information on the matter, please contact Slavic401k for financial guidance.

Slavic401k: Contact US

Cancellation

Should you wish to cancel your, you'll need to contact Slavic directly.

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.

Enrolling in Justworks as an employee is easy. Once you are added by your administrator, you will receive an email with an invitation link to Justworks. Please be sure to follow the link from that email, to ensure that you will enroll in an account that’s connected to yourcompany.

First, you’ll create a username and password. Next, you’ll make sure your name is spelled correctly, and enter in your personal details such as date of birth and Social Security number.

You’ll also have to fill out your mailing address, so we can apply the proper taxes and send your tax forms at the end of the year. We'll also need you to enter your phone number. You will be able to change this information at any time.

Lastly, enter your bank account and routing numbers, and adjust your filing status andwithholdings as you see fit. You can also change this information directly from your account settings tab whenever you feel the need to do so.

Once you double-check everything and confirm your account settings, you’ll be logged in!. You’ll be prompted to accept the Worksite Employee Acknowledgment and complete your portion of Form I-9.

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.

What is Justworks HR Consulting?

HR Consulting at Justworks is tailored HR guidance from certified HR professionals. This service is free for all companies using Justworks, because we understand how important HR support is to grow and sustain a successful business.

What questions can HR Consultants answer?

Justworks' HR Consultants are domain experts in a broad range of HR topics, from paid time off andleaves of absence to employee relations and talent management. We provide support in a wide variety of HR domains, and can answer questions like this:

How do I create a time off policy that's compliant with federal, state, and local laws?

Can you provide best practices for complying with leaves of absence requirements?

When do I need to pay my employees overtime?

What are the rules around hiring minors?

What are the onboarding requirements for certain visas?

I need to terminate an employee; what do I do now?

How can I access Justworks HR Consulting

To access an HR Consultant, simply contact your Account Manager or a Customer Success representative who can connect you to this service.

In addition, anyone with admin permissions in Justworks has access to the resource center which hosts a variety of helpful HR tools via our partner ThinkHRand can be accessed directly from the Justworks dashboard.

Employee Handbook Builder - Quickly and easily build your company's employee handbook and keep it updated over the years

Salary ComparisonTool - Know what the competition is and isn't offering talent

Performance Review Planner - Make performance reviews painless and effective

Job Description Builder - A guided approach to building robust and consistent job descriptions

HR and Compliance Q&A database - Thousands of answers to the toughest HR and Compliance questions across all U.S. jurisdictions.

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.

Justworks is required to file Unemployment Insurance under our Justworks Unemployment Accounts and customers will be subject to Justworks’ state unemployment rates. Previous state Unemployment Accounts should be suspended or closed, but if your current PEO is filing under your (client's) unemployment account, please let Justworks know and we will send revised instructions.

I was previously using a PEO, do I still need to do this?

If your company is joining Justworks, please communicate your Justworks start date with your current PEO qne Justworks will take over filing for Montana Unemployment and withholding from your Justworks start date onwards.

Closing your unemployment account

There are two ways to close your Montana unemployment account.

Option 1: The authorized agent or owner/officer must call one of the two representatives listed below:

Deb: (406)-444-3606

Michelle: (406)-444-3614

Option 2:If you have access to your online portal, you are able to send the state a "message" requesting that your account be closed.

If you’re having trouble completing the online account setup process, please contact the state’s customer service line for assistance.

My company is new to the state of Montana, what do we need to do?

If this is your first time operating in Montana,you’re all set.Newly formed companies inMontana, or companies with a new remote hire in MT, do not need to take any action or file any forms.

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.

Washington Paid Family and Medical Leave (PFML)

Washington PFML is a state-mandated insurance program designed to provide paid leave to employees to receive or give care.

Premium collection and reporting requirements will begin on January 1, 2019. However, employees will be able to use the benefits starting in 2020.

Do I need to participate?

All employers who have employees in Washington state will need to participate in the PFML without exception.

If you are an employer headquartered in a different state but have employees in Washington state, you will also need to participate.

What are the premiums?

The premium for PFML will be collected from both employers and employees.The total premium collected will be 0.4\% of gross wages.Please use the state provided premium calculator to see a breakdown of the premiums.

Premium example:

Gross wage (one pay period): $2500

Total premium: $2500 * 0.004 = $10

Employee’s share: $10 * .6333 = $6.33

Employer’s share: $10 * .3667 = $3.67

Can I opt out of premiums?

If you have less than 50 employees:

The employer portion of the premiums is not automatically collected for you. If you would like to opt-in for the employer portion, please reach out to us with the request so that we may start collecting the premium.

Please see the state website for the advantages of opting into the employer premiums: State website

If you have 50 or more employees:

The employer portion of the premiums is automatically collected. You will not be able to opt-out of paying the employer portion of the premiums.

What am I responsible for?

As long as you have an active Washington State Unemployment Account and provided Justworks with access to the account, Justworks will be taking care of the premium collection, remittance, and the quarterly reporting requirements for you. If you do not believe you have an open account or have not provided access to your account to Justworks, please do so immediately as it may impact your employees’ eligibility for PFML.

Can I pay for the employee premiums?

Employers will not be able to cover the employee’s premiums through Justworks. All premium collection will be handled as directed by the general guidelines set forth by Washington state.

Is there a wage cap for premiums?

Premium withholdings are capped at the Social Security cap, $132,900 in 2019.

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.

Overview

When an employee experiences a qualifying life event, they can make updates to their health benefits coverage by submitting proof of the QLE within 30 days of the event.

Otherwise, all changes must happen during your company's open enrollment period.

Keep in mind, that we will backdate any new coverage to the first of the month. For example, if you got married on May 15th and are adding your spouse to your plans, your coverage will be effective as of May 1st.

Insurance Billing with a Qualifying Life Event

With a change in coverage comes a possible change in cost, for both the employee and employer. When an employee experiences a qualifying life event, you can expect to see new billing go into effect on the payroll following the employee’s election.

Switching to a More Expensive Plan

Employer: As an employer, you will see credits on the next payroll invoice for the amount of employer contributions paid on the employee's previous plan, for the month(s) the coverage is being backdated for. In the same invoice, you will be debited for the increased employer contribution for the new plan and/or tier.

You as the employer will essentially be paying for the difference in premium amounts for any months that were already paid for through credits and debits, along with paying the new premium amount moving forward.

Employee: Billing for the employee works a bit differently. Employee billing will take into account the differences in premiums, but will not display the debits and credits the way the company invoice will. Instead, the employee will be charged a greater amount for their insurance premiums on the following payroll. The employee will be charged for any outstanding premium as well as the premium for the current pay period.

Switching to a Less Expensive Plan

When an employee switches to a less expensive insurance plan, the employer and employee will be reimbursed for overpaid premiums for the months the coverage is being backdated.

Employer: Similar to the behavior mentioned above, the employer will be given a credit for any premiums paid for the original plan and then debited for the new plan. The amount of funds returned will be the difference in cost between the original plan and the new plan.

Employee: Employees who have overpaid for insurance premiums will receive credits on their accounts automatically. These credits will apply to the new plan option. The members won’t see deductions from their paycheck (or reduced contribution amounts) until they reach the credit amount. Once their credit has reached $0, they will see deductions from their paycheck as normal.

In many businesses workers are paid wages or a salary, and that compensation is subject to income taxwithholding and employer taxes. But sole proprietors, partners in a partnership, and the members of alimited liability company are never paid wages because they are considered to be self-employed. Sohow do such individuals take money out of the business? It is by means of an “owner’s draw,”or justplain “draw.”

What is an owner’s draw?

Technically, an owner’s draw is a distribution from the owner’s equity account, an account thatrepresents the owner’s investment in the business. Owner’s equity is made up of any funds that havebeen invested in the business, the individual’s share of any profit, as well as any deductions that havebeen made out of the account. That means that an owner can take a draw from the business up to theamount of the owner’s investment in the business.

The Balance Sheet: Sole Proprietorship

Every business financial statement has at least five basic parts:

Income

Expenses

Assets

Liabilities

Equity

The Profit and Loss Statement shows the business’s Income and Expenses, and the difference is eithera Net Profit or a Net Loss. On the Balance Sheet the total Assets should be equal to the sum of theLiabilities and Equity.

For a sole proprietor the Equity section of the Balance Sheet will have at least three accounts:

Owner’s Initial Equity

Owner’s Draw

Net Profit

When a sole proprietor starts his business, he often deposits his own money into a checking account.This is recorded on his Balance Sheet as a debit to checking (an Asset) and a credit to his Owner’sInitial Equity account. When a sole proprietor’s business becomes profitable, his Income will be greaterthan his Expenses, and the balance in his checkbook will increase. In order to balance his BalanceSheet, he has to add the Net Profit to his Equity.

At this point, when the business becomes profitable, he can draw funds from his equity account bywriting a check, thus crediting his checking account and debiting his Owner’s Draw account. Thetransaction only affects his Balance Sheet, so it is not recorded on his books as an Expense. A soleproprietor pays income taxes based on his Net Profit, not on anything on his Balance Sheet. As longas the Equity account is greater than zero, the sole proprietor can continue to take draws from thebusiness.

The Balance Sheet: Partnership

In a partnership, two or more individuals will share the profits and pay income taxes on those profits. Apartner’s share in a partnership is not necessarily based on the amount each partner has invested in thebusiness, so an owner’s share of the business’s equity may not be the same as his share of the profits.A partnership agreement is used to specify each partner’s share of the profits or losses of the business.Taxes are paid on the partner’s share of the profits.

On a partnership’s Balance Sheet, each partner’s equity has to be tracked separately, either on theBalance Sheet itself or in a set of subledgers. For instance, in a two-person partnership one partner mayhave invested all of the start-up funds, but the partnership agreement specifies that each of them willhave an equal share in the profits. However, each partner’s equity has to be tracked separately becausethe one partner’s equity is the sum of his investment and any profits, and the other partner’s equityconsists only of his share of the profits.

Each partner may draw funds from the partnership at any time up to the amount of the partner’s equity.The only other way for a partner to take funds out of a partnership is by means of guaranteed payments.These are payments that are similar to a salary that is paid for services to the partnership. Guaranteedpayments are an expense that reduces the partnership’s profits. However, these are not wages subject toincome tax withholding, so the partner will have to report these payments as income on his tax return,whereas the draws are not treated as income.

If a partner receives guaranteed payments during the year, his Schedule K-1 will report his guaranteedpayments as a separate line item from his share of the profits, and he will report as income the sumtotal. However, any draws that he has made are not reported on Schedule K-1.

The Balance Sheet:LLC

A limited liability company is a special legal entity that has some of the legal protections ofa corporation, but it is taxed as either a single-member sole proprietorship or a multi-memberpartnership. Therefore, the procedures for owner’s draws are the same as those described above.

So handling owner’s draws doesn’t have to be complicated. Only profits or losses have to be reportedon income tax returns. Owner’s draws simply reduce the owner’s equity as he recovers his initialinvestment or takes the profits out of the business. The key is to keep the business’s finances totallyseparate from personal finances, so that the flow of money from the business to any personal account isclearly documented.

Use Justworks to take an owner's draw

On the Justworks platform, to take an owner’s draw, simply create an off-cycle payment for the amount needed. Have questions about owner’s draws, or anything else? Contact us at [email protected].

We originally published this on our blog.

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.