Notice: Our offices will be closed Thursday, November 23 and Friday, November 24 in celebration of the Thanksgiving holiday. We will resume normal business hours on Monday, November 27. If you have questions about your account during this time, please use our online contact form and we will respond as quickly as possible. Thank you for your patience.

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New Employees

When a new employee is hired, there are two initial questions that must be answered to determine eligibility:

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

Having determined eligibility, follow these steps:

  1. Submit the completed Plan Participation Form two weeks prior to the participant's effective date, whether the employee is participating or waiving participation. Your next monthly billing will show the newly-hired employee with corresponding election amounts, if any.
  2. Also, submit the Pre-Tax Premium Notification Form to notify us which plans and premium amounts, if any, are applicable to the new employee.

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.

Related items

  • Benefits Bank Account

    Employers whose plans include FSAs should establish a checking account in the bank of their choice to serve as a "benefits" bank account.

  • Key Processing Dates

    Here's a quick reference to help you keep track of our schedule.

  • Legal Compliance

    Federal law requires your company to comply with IRS regulations on proper documentation and reporting.

  • Discrimination Testing

    A Flexible Benefit Plan may not discriminate in favor of key employees or highly compensated employees (see definitions below).

  • COBRA Compliance

    Learn how COBRA laws apply to your Flexible Benefits Plan.