Adding and removing employees

New hires

Add the employee in Warp as you normally would. They appear on the Thatch side right away.

The one step left is the enrollment invite. Send it as soon as they are on payroll, because coverage starts the 1st of the month after they finish enrolling. If a new hire has not been invited yet, we will flag it, but the sooner the better.

If someone gets invited too late and misses the month-end cutoff, they have no coverage until the following month and it cannot be backdated. This is the single most common way new hires end up with a gap.

Moving someone from 1099 to W-2

Thatch only covers W-2 employees, so tell us when you convert a contractor. Email benefits@warp.co with the person's name and their W-2 start date, and we will make sure they are set up in Thatch in time for the next coverage start date.

If converting contractors to W-2 is something you do regularly, let us know. We can build an integration so this happens automatically instead of you flagging each one.

Adding family members

Employees can use their allowance for a spouse or domestic partner, children up to age 26, and other tax dependents. They do this themselves during enrollment. Nothing needed on your end.

Mid-year plan changes

Employees can only switch plans mid-year after a qualifying life event: marriage or divorce, birth or adoption, losing other coverage, or moving to a new area. They should email support@thatch.com.

Otherwise, plan changes happen during open enrollment, November 1 to January 31. Plans auto-renew if the employee does nothing. Your only job is deciding whether to change your allowance amounts for the new year. Thatch handles the employee communication.

When someone leaves

Terminate them in Warp as usual and set their benefits end date in Thatch. Their allowance stops on that date.

Their health plan does not end with their job. It is an individual policy that they own, so neither you nor Thatch can cancel it. If they want to keep it, they update their payment method directly with the carrier and continue paying the premium themselves. That is usually the cheapest path for them.

COBRA is still available if your company is subject to it. It works differently than it does on a group plan. Employees do not need COBRA to keep their coverage. The reason to elect it is to keep access to any unused balance left in their Thatch account, and a 2 percent administrative fee applies. If you are subject to federal COBRA, you set the benefits end date and Thatch sends the employee the required notice with the cost and the steps. Thatch's full guide is here: https://support.thatch.com/Thatch-guide-to-COBRA

Tell us when someone is leaving and we will confirm what applies to your company, so they hear it from someone before their last day rather than after.