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Cafeteria Plan Election (Electronic)


Guest Benmark

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Guest Benmark

I realize that an employer is required to recieve authorization from an employee before benefit deductions are taken. However, does anyone know how the authorization is to be obtained? Can the authorization be done with an electronic signature? If a wet signature is requied, how do other employers deal with this issue?

Thanks

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Yes, electronic can be done. As for the second part of the question, "If a wet signature is requied, how do other employers deal with this issue?", don't quite understand what you are asking. Sounds like you are asking how to obtain "wet" signatures? If that is the question, just send out the forms and ask for them back by a certain date. Am I missing something in your question, if so, sorry?

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Some employers require a wet signature (obtained during employee orientation) consenting to future electronic enrollments and payroll deduction authorizations. Others take the position that any state law requiring a wet signature to authorize payroll deductions would be preempted by ERISA and that therefore no wet signatures are required.

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leevena, I don't think he is asking how to get wet signatures, but how to deal with needing wet signatures when he wants to do electronic. Obviously if a wet signature is required under the plan, then I think the employer would deal with that by not having electronic enrollment!

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I have to admit that, until now, I've been completely unfamiliar with the term "wet signature".

I usually sign documents in crayon. Would that be a "wax signature"?

Lori Friedman

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  • 1 month later...
Guest Benmark

Thanks for the responses. I guess my question is whether someone needs to sign an authorization (a paper form with a pen signature) before they can perform electronic benefit transactions that may affect their paycheck deductions, such as benefits enrollment, change in status, etc.

Is there a legal requirement that we need to get such an authorization before electronic signatures are utlilized?

Thanks!

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Guest Pensions in Paradise

"wet signature" makes me think of signing a bar tab while playing blackjack in the Hard Rock Hotel pool in Las Vegas.

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Benmark, if this remains a concern, you may well want to include some sort of "electronic transaction" authorization that requires wet signature at the time of hire or presentation of right-to-work documentation. Then good disclaimer and hold harmless agreements to your electronic portal, especially to the new employee's initialization process. I think that an electronic signature set up with proper security, especially in a closed environment like a benefits enrollment application, shoud be quite acceptable.

How long before we stop meeting our new employees and everything is done electronically save for a notary who does a home visit to get some signatures and documentation? Can't be too far off.....

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