New Employees

There are two initial enrollment steps for a new employee:

1. Does the employee meet all participation guidelines established by your plan?
   Has he/she completed the waiting period? Are they working the required number of hours?
2. Is he/she considered a key or highly compensated employee (by IRS definitions)?
   This question is critical to determining if the new participant will affect your non-discrimination percentages. If you have any doubts about this, call ProBenefits, Inc. to get more information.

Having determined eligibility, follow these steps:

1. New employees are eligible to join the plan after the waiting period selected by you and reflected in your plan document. The completed  Plan Participation Form must be submitted two weeks prior to the participant's effective date, whether the employee is participating or waiving participation. If there are questions, we will welcome your call.
2. Also, a  Pre-Tax Premium Notification Form should be submitted to notify us of which plans and premium amounts, if any, are applicable to the new employee.
3. Submit the Plan Participation Form to ProBenefits for processing, making sure all information is correctly completed.  Your next monthly billing will show the newly hired employee with corresponding election amounts, if any.

It is vital to notify us promptly of new employees, so we can keep accurate records for discrimination testing and year-end IRS Form 5500 reporting.

This publication is designed to provide accurate and authoritative information regarding the subject matter covered. It is provided with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional services. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.