Introduction
Warp's integrated health insurance and 401(k) benefits make it seamless to keep company and employee deductions/contributions in sync with payroll. This integration eliminates the need for manual reconciliation and reduces the risk of discrepancies.
However, for employers using non-integrated or third-party benefits providers, the responsibility falls on you to create, update, and manage employee and company benefits/deductions to ensure everything remains synchronized. This guide will help you understand and address common reconciliation issues.
How to Create and Update Third Party Benefits in Warp
Employers can create and update employee benefits by navigating to an Employee Profile > Benefits section. There you'll see a list of any active benefits, their details, and can update as you see fit.
How To Add Third Party Benefits to Employees
From Warp Admin view, go to the desired Employee Profile
Navigate to the 'Benefits' section
Then click on 'New Benefit'
From there, please add the Benefit Type, Benefit Start Date, and Contribution Type (Amount per month, Amount per paycheck, or Percent of paycheck)
Once these plans are set-up, they will then apply to all future payrolls for the given employee based off of the Benefit Start Date (as long as it's in the future and not in the past)
Understanding Discrepancies
When employers don't update benefits setups in both Warp and their third-party benefits providers at the right time, discrepancies can occur between:
What's recorded in payroll/withheld from employee paychecks
What actual benefits are paid out to employees
These discrepancies generally fall into two categories:
Case 1: Employee Received Benefits Not Recorded in Warp
This occurs when an employer doesn't create or update benefits in Warp before processing payrolls, but the employee receives benefits through the third-party provider.
Example: An employee enrolls in a higher tier of health insurance through your benefits provider on March 15, increasing their monthly premium from $150 to $250. However, you don't update this change in Warp. By the end of April, the employee has received $100 more in benefits than what was withheld from their paychecks.
Result: The employee owes contribution dollars to the employer.
Case 2: Employee Contributions Withheld But Benefits Not Provided
This happens when deductions are made from employee paychecks through Warp, but the benefits haven't been properly updated or paid out through the third-party provider.
Example: An employee enrolls in a wellness program with a $100 monthly stipend, and the contribution is correctly set up in Warp with deductions from their paycheck. However, the employer doesn't activate this benefit in their third-party wellness platform.
Result: The employer owes contribution dollars to the employee.
How to Resolve Discrepancies
Resolving Case 1: When Employee Owes Contributions
If an employee has received benefits that weren't properly withheld from their paychecks:
Create a Correction/Catch-up Benefit in Warp:
Navigate to the Benefits section in Warp
Select the affected employee
Create a new temporary benefit titled "Benefit Reconciliation" or similar
Set the additional/owed amount to be withheld from future paychecks
Determine an Appropriate Repayment Schedule:
For small amounts, you might recover the full amount in one pay period
For larger amounts, spread the recovery over multiple pay periods to minimize impact on the employee
Communicate clearly with the employee about the correction and timeline
Document the Reconciliation:
Keep detailed records of the discrepancy and resolution
Note when the correction benefit was added and when it should be removed
Resolving Case 2: When Employer Owes Benefits
If an employee has had deductions for benefits they haven't received:
Pay Out the Missing Benefits:
Process the owed payment through your third-party benefits platform
If this isn't possible, arrange for direct payment to the employee
Ensure the benefit is properly activated for future payments
Correct the Setup in Both Systems:
Verify that the benefit is correctly configured in both Warp and your third-party system
Set a reminder to verify benefit synchronization after each benefits change
Document and Communicate:
Document the discrepancy and resolution steps taken
Clearly communicate with the affected employee about the resolution and timeline
Best Practices to Prevent Discrepancies
Implement a Change Management Process:
Create a checklist for benefits changes that includes updating both Warp and third-party systems
Designate a specific person responsible for maintaining benefits synchronization
Regular Reconciliation Reviews:
Schedule monthly reconciliations between Warp and your third-party benefits providers
Look for discrepancies in contribution amounts, enrollment status, and coverage levels
Calendar-Based Reminders:
Set calendar reminders for benefits open enrollment periods
Schedule verification checks after known benefits change dates
Employee Communication:
Ask employees to verify their benefits deductions on pay stubs
Encourage employees to report any discrepancies they notice
Important Notes
Warp is not responsible for paying out any third-party benefit amounts to employees. All third-party benefits must be managed through your third-party platforms.
Regular reconciliation is key to preventing large discrepancies that could be difficult to resolve.
Always consider the impact on employee paychecks when implementing corrections.