As part of our commitment to making the Wellness Plan as seamless as possible for your business, we handle situations where an employee’s paycheck doesn’t quite cover their deductions. This can happen during holiday breaks, limited PTO, or unpaid leave. Rest assured, you don’t have to worry about managing these situations- we’ve got it covered.
Minimum Gross Pay for Deductions
To maintain Wellness Plan deductions, there’s a minimum gross pay requirement:
- Weekly: $300
- Bi-Weekly or Semi-Monthly: $600
- Monthly: $1,200
If an employee’s gross pay falls below this threshold, we automatically block the deduction and flag it for review. If the issue continues for consecutive paychecks within the same month, we’ll remove the employee from the plan.
Why Does This Happen?
Since the Wellness Plan operates under a Section 125 structure, it’s designed to work best for employees with consistent pay. For those with fluctuating pay, such as part-time or hourly employees, the tax savings and benefits may not be fully realized if their earnings fall below the minimum threshold.
We Handle Everything for You
You don’t need to manage payroll issues related to the Wellness Plan. Just notify us of any significant changes and we will take it from there! We track pay, adjust deductions, and keep employees informed. If there’s a situation where deductions can’t be covered, we take care of the adjustments and ensure your employees are kept in the loop.
Our goal is to make sure the plan continues to run smoothly for everyone involved, so you can focus on your business while we manage the details.