How does it work?
Once Navia drafts and provides your client with the Premium Only Plan Document, the employer’s payroll department simply deducts the portion of the employee’s premiums pre-tax and sends it to the insurance provider. This pre-tax deduction can be taken for the employees and their tax dependents on qualified insurance premiums.
How is enrollment handled?
Employee enrollment in Premium Conversion is usually done automatically. When automatic enrollment is in place, employees who do not wish to participate will have to write a letter to the employer’s payroll department expressing that they do not wish to have pre-tax deductions taken from their paycheck.
Some employer’s make enrollment optional. If this is the case, employees will need to fill out and sign an enrollment form each year.
Are there any ongoing fees?
Nope. We charge a one-time flat fee to draft the plan document and that document is usually valid for about 3 to 5 years.
Offering an FSA?
If your client is planning on offering an FSA to their employees, the premium conversion portion is included as part of our standard FSA administration package.
Interested in learning more?
Contact our sales team at 425.452.3498 or firstname.lastname@example.org