Skip to content
BOL Conferences
Thread Options
#113246 - 09/08/03 10:09 PM Commission & Benefit Question
LynnOk Offline
Junior Member
Joined: Jun 2003
Posts: 27
Oklahoma
How do you handle employees that are commission only and their payment of their portion of insurance premiums--do you allow them to run their payment through Sec. 125 plan? If so, how do you handle it when there is a pay period and no commission?

Return to Top
Human Resources
#113247 - 09/10/03 02:36 PM Re: Commission & Benefit Question
Bob McComas Offline
Platinum Poster
Bob McComas
Joined: Sep 2002
Posts: 570
Dallas, Texas
This is a tricky situation. I once had about 150 commissioned employees that faced the same problem. What I did when they did not have enough earnings to cover premiums was to send them a letter notifying them of the arrears and letting them know they had to make up the premiums within 90 days or be terminated from the plan for failure to make premium. They would be allowed pay premiums through Section 125 Plan any time a deduction was made.

If the employee defaulted twice in a 12 month running period they would be terminated from the plan and allowed to re-apply at open enrollment.

The carrier was aware of this arrangement and had no problem with it. As long as it was equally enforced, I was compliant with ERISA.

Return to Top
#113248 - 09/10/03 05:39 PM Re: Commission & Benefit Question
LynnOk Offline
Junior Member
Joined: Jun 2003
Posts: 27
Oklahoma
Thanks, Bob. I'll check with our Sec. 125 administrator and see if they will approve handling the payments in the manner you described.

Its an accounting nightmare keeping up with who is current & who needs to make it up. I've been doing it through payroll . . . Every time I complete payroll I check and double check and then check again before I finalize the processing--but I still always have one of those sinking feelings wondering if I forgot to change someone's deductions. YUK!

Return to Top

Moderator:  Andy_Z, Gayla Sherry