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Section 125 Compliance

Zenefits helps with your Section 125 compliance in the following ways:

  • We have you sign a new Section 125 agreement every year after you complete renewal, with updated language that allows you to take insurance costs pre-tax out of employee paychecks.
  • We also collect the employee's signature at enrollment indicating they agree to the Section 125 agreement.
  • We don't allow employees to opt into pre-tax benefits that are not eligible or to enroll in or cancel benefits outside of the eligibility window indicated in your 125 agreement.
  • Zenefits has a feature that allows us to assist you in creating your Summary Plan Description (SPD) each year. You'll get an inbox task notification about 45 days after your renewal date asking you to upload the policy booklets so that we can create your SPD.

Where can I find this in my Zenefits account?

  1. Go to the Benefits Administration app on your dashboard.
  2. Click the Company tab.
  3. Select the Compliance link.
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