Begin with the enrollment process: employee eligibility, evidence of insurability where required, election deadlines, effective dates and how employees receive certificates. Assign responsibility for new hires, terminations, leave, billing reconciliation and beneficiary changes. Payroll deduction still requires accurate elections, authorizations and carrier remittance.
Do not assume every voluntary benefit can be deducted before taxes. A written Section 125 cafeteria plan may allow eligible benefits such as qualifying dental and vision coverage to be paid pre-tax, subject to its rules; other products may not qualify. Disability premium tax choices can also change how benefits are taxed. Confirm each product and payroll code with your tax adviser using IRS Publication 15-B, cafeteria plans and Publication 525, disability benefits.
Build the menu around employee needs rather than the number of products. Compare enrollment support and ongoing service alongside premiums; voluntary coverage supplements, rather than replaces, comprehensive medical insurance.
Compare the separate product details: group dental insurance, group vision insurance, group term life insurance, disability insurance, long-term care insurance. Coordinate these elections with group health insurance options.
