We believe billing should be clear and transparent. Below you'll find some of the most common QSEHRA health benefit billing questions and answers.
How are subscriptions timed?
Your health benefit will always be aligned to a calendar year, from January to December.
Your software subscription, will be based on the date you sign up with PeopleKeep. If signing up mid-month on a monthly subscription, your subscription will renew on the 1st for each month to follow. If signing up annually, it will renew one-year from the date you signed up.
See an example below:
If you sign up on the 15th of the month and choose a monthly plan, you will be charged a prorated amount, and your subscription will renew on the 1st of the month.
If you sign up on the 15th of the month and choose an annual plan, you will be charged for the year. Your subscription will renew one year from the signup date.
What am I charged when I sign up?
On your sign-up date you'll see the following charges whose amounts can vary based on monthly or annual subscriptions:
- A one time signup fee - This fee covers the creation of your compliant legal plan documents and your company’s PeopleKeep account. It is never charged again.
- A company base fee - This fee covers some of the fixed costs of providing our PeopleKeep platform. It does not vary based on the number of employees using the HRA benefit.
- A three seat minimum fee - This fee covers the costs of supporting each employee’s access to the benefit. This includes generating individual plan documents, notification e-mails, and access to our live Customer Support personnel. A minimum of three seats will be added at sign up.
- Additional eligible employee or software user per seat fee - A fee for each additional eligible employee, or software user (this could be a non-eligible admin, CPA, or business owner) that has been added to the account following the three seat requirement. If you do not add more than three seats, you will not see this fee until more than three seats are added.
Monthly Subscriptions
If signing up after the 1st of the month, a pro-rated company base fee and pro-rated seat fee of 3 (or more) will be billed after sign-up is complete.
Annual Subscriptions
A discounted company base fee and a discounted fee of three seats (or more) for 12 months will be billed after sign-up is complete.
What am I charged after I sign up?
- A company base fee
- An employee/software user per seat fee - a minimum of three seats are required.
Seats are billed when they are added to the benefit (added = when they are created in the system manually or by adding an eligible employee when there is no available seat left to occupy) at a prorated rate for the first month.
Adding seats can be done without adding eligible employees. For example, you may add 10 seats without adding 10 employees and we will bill for 10 seats.
Seats are able to be removed as long as there are available seats with no employees added. When seats are removed, billing will be updated on the first of the upcoming month for Monthly. No credit is issued for seat removals mid-month. Similarly, no credit is issued for removing seats mid-year on an Annual subscription.
What am I charged when my subscription renews?
When your subscription renews you will be charged the company base fee and per employee fee. These will either be a monthly or annual fee depending on how often you've chosen to pay.
Can I switch from a monthly to an annual plan or vice versa?
Yes, you can switch from a monthly subscription to an annual subscription or vice versa once your current subscription ends. For example, if you have a monthly subscription that renews on April 1st, you can have the annual subscription start that day when it renews. It would be the same in the instance of switching an annual subscription to a monthly one. Contact our support team at support@peoplekeep.com, and we can assist you.
Which employees am I charged for?
You will be charged for all “software seats” purchased for all benefit-eligible employees added to the benefit. Adding a benefit-eligible employee adds a "seat" to your subscription. There is a 3-seat minimum fee whether or not you have added eligible employees to those seats.
As a reminder, QSEHRA regulations require plan administrators to include all eligible employees. Failure to include all benefit-eligible employees can lead to significant fines. Below is some more detail on who is an eligible employee and who you will be charged for:
- W-2 Full-Time—This employee type is always benefit-eligible. Remember, to stay compliant, you must offer this QSEHRA benefit to ALL W-2 full-time employees participating in the group health insurance plan. While employees can choose not to use their allowance, they cannot opt out.
- W-2 Part-Time—This employee type may be eligible, but it’s completely up to you to decide whether to extend QSEHRA benefits to W-2 Part-Time employees. Upon designing the company's benefit plan for the year, you may choose to allow part-time employees to be eligible. You may not add W-2 Part-Time employees after the benefit effective date at any time during the health benefit year.
- Ineligible Admins—You are charged a software seat for all admins, even if they are not eligible employees.
Who am I not charged for?
These employment statuses will not be charged a seat fee as long as they are not an Admin.
- Owners- This status is not benefit eligible. This status is used for owners that are not eligible, such as an S-Corp owner, Sole proprietors, and Partners. Learn more about owner participation here.
- Other - This status is not benefit eligible. This includes people like third party administrators, certified public accountants (CPAs) your organization hires in a consultative capacity.
- W-2 Part-time- This status is not benefit eligible unless you decide to make Part-time employees benefit eligible.
- Terminated - This status is not benefit eligible. This employee has left the business and will no longer be eligible for the benefit upon their termination date.
Why am I charged for ineligible admins?
An ineligible admin is provided the same services and support as an eligible employee, such as access to our Support team and email communications.
Adding eligible employees
If you add an employee to the benefit, you will be charged a per employee fee that is prorated until your next billing period for that additional seat. For example, your company pays monthly and the subscription renews on June 1st. You add Sally to the benefit with a hire date of June 15th. On June 15th, you will be charged a prorated fee for Sally for June 15th -June 30th. On July 1st, your total per employee fee charged at the monthly renewal will include Sally. Learn more about adding employees to the benefit here.
Removing eligible employees
If an employee leaves the company or changes status, such as going from W-2 full-time to W-2 part-time, and you do not offer a benefit to part-time employees, you will want to make sure to update their information in PeopleKeep. Learn more about adding employees to the benefit here.
Do I receive a refund for unused seats?
No, once an employee is removed, you will have an available seat on your account to use for the remainder of your subscription (either that month or that year, depending on how you've chosen to pay).
If you do not plan to hire and you'd like to reduce your seat count, which will only take effect when your subscription next renews at the next billing cycle, you can do so by going to Manage People > Edit Seats then selecting the current employee seat number. A minimum of 3 seats is required.
If you foresee a lot of volatility in your business or aren't ready to commit to a seat count for the year, we recommend a monthly subscription. Please contact our support team at support@peoplekeep.com, and we can help you make that change.
Do I receive a refund if we cancel our PeopleKeep benefit mid-subscription?
No. You will not receive a refund for unused time if you cancel mid-subscription. If you believe you will likely end your HRA, we highly recommend speaking with us as far in advance as possible, so we can help you make the transition as smooth as possible.
Is there a charge if I cancel the account with a runout period?
Yes, your normal subscription fees will apply during this time. The account will officially close at the end of your runout period. Learn more about the runout period here