Welcome to Greythorn! Congratulations on your contract assignment. I hope this will be a successful and productive engagement and the first of many through our firm. You will be contracting through Greythorn as a W2 employee. Greythorn will deduct your taxes at source and pay the relevant employer taxes on your employment. Benefits Greythorn offers Medical and Dental benefits through Regence Blue Shield. You are entitled to take up these benefits. Details of the coverage, including costs, are enclosed. If you chose benefits the monthly cost will be deducted from your paycheck; half on the first pay check of the month and half on the second. This cost will be deducted pre tax, if you prefer to have your benefits costs deducted after tax you must inform us in writing. A Benefits Enrollment Form is attached which you should complete and give to your Greythorn representative if you wish to proceed. Timesheets Greythorn timesheets are on our website, www.greythorn.com, there is a timesheet link on the right hand side. You must then select the USA timesheet format and enter your name and contract details. A cookie will be sent to your browser to remember this information. Please fax timesheets to Greythorn on the Monday following the completed week’s work. All qualifying timesheets must be received by a 12pm deadline on the Tuesday the week payroll is run. Failure to submit signed timesheets by this time may exclude their inclusion in the payroll for that week. Pay Greythorn pays all contractors on a bi-weekly basis. We pay the money in to your bank account on the Friday by direct deposit unless you request check payment. In any case it takes one pay cycle for the direct deposit to be set up, so the first pay will always be as a check. Your Greythorn Consultant Your Greythorn Consultant is on hand to answer queries relating to your engagement. They will be keen to hear how you are getting on and will keep in touch with you. After you have settled in they will arrange a post hire review, where your consultant will meet with you face to face and find out how the engagement is going, then meet with your manager for their feedback.
GREYTHORN INC Phone: 425 635 0300
40 Lake Bellevue Fax: 425 635 0333
Suite 100 www.greythorn.com
Bellevue WA 98005 1/16
This provides an early opportunity to address any concerns or issues and ensures that both parties are happy and expectations are being met. It is part of Greythorn’s service and is appreciated by both client and contractor.
Policies Greythorn is committed to an equal opportunity workplace and one in which our staff can work in a productive manner, free of harassment and disruption. Greythorn cannot control the work environment for contractors who do not work on our premises. However every effort will be made to address any concerns or issues you may have. If you feel you are being disadvantaged, discriminated against unlawfully or experiencing any form of harassment you should speak to your consultant at Greythorn. In most cases if the problem is raised at an early stage it can be diffused. We ask you to contact Greythorn at the earliest opportunity. If your Greythorn consultant is not available please ask to speak to a Vice President. When working on a client site employees must also abide by the client’s rules, regulations and policies. In the absence of such policies, or where such policies do not cover all the points contained within Greythorns’ policies, then the Greythorn Policy will apply. In the event of a conflict between the Clients’ policies and Greythorns’ policies the employee should speak to a Greythorn Vice President. If you have any queries please contact your Greythorn representative who will be more than happy to advise or assist you in any way they can.
Yours sincerely,
James Dixon Vice President 425 635 0300 james.dixon@greythorninc.com
GREYTHORN INC Phone: 425 635 0300
40 Lake Bellevue Fax: 425 635 0333
Suite 100 www.greythorn.com
Bellevue WA 98005 2/16
Regence Blue Shield
GROUP BENEFITS SUMMARY
Prepared for the employees of:
Greythorn Inc
Benefit Plan Year July 1, 2003 through June 30 2004
BENEFITS COSTS ARE DEDUCTED PRE-TAX UNLESS YOU ADVISE US OTHERWISE.
This saves you money – please see below.
GREYTHORN INC Phone: 425 635 0300
40 Lake Bellevue Fax: 425 635 0333
Suite 100 www.greythorn.com
Bellevue WA 98005 3/16
Medical Benefits Summary
For the Preferred level of benefits, services must be provided by a PPO provider. If services are provided by a Participating (PAR) provider, benefits will be paid at the lower benefit level. Calendar Year Deductible - Per Individual - Per Family Out-of-Pocket Maximum - Per Individual - Per Family Lifetime Benefit Maximum - Per Individual Office Visits Lab & X-Ray Services - Services billed by attending physician $100 $300 $1,000 $3,000 $2,000,000 $15 copay then 100% after deductible 100% after deductible
Services provided by Regence Blue Shield Preferred (PPO) Providers
Preventive Care $15 copay then 100% (deductible waived) - Includes wellness exams, routine physicals, immunizations and ob/gyn visits - Limited to $300 per calendar year Chiropractic Care - Limited to 10 visits per calendar year Alternative Care - Acupuncture is limited to 12 visits per calendar year - Naturopaths are covered as any other licensed provider Hospital Treatment - Semi-private room & board Emergency Room - Copay waived if admitted to hospital Inpatient Mental Health - Limited to 8 days per calendar year Outpatient Mental Health - Limited to 12 visits per calendar year 90% after deductible $75 copay then 90% after deductible 90% after deductible 50% after deductible Does Not apply to Out-of-Pocket Maximum $15 copay then 100% after deductible $15 copay then 100% after deductible
GREYTHORN INC Phone: 425 635 0300
40 Lake Bellevue Fax: 425 635 0333
Suite 100 www.greythorn.com
Bellevue WA 98005 4/16
Services performed by Participating (PAR) or Non-Preferred Providers Coinsurance Prescription Drugs Preferred Pharmacy Program Generic - (one month supply) Preferred Brand - (one month supply) Non-Preferred - (one month supply) Mail Order - (three month supply) Includes Oral Contraceptives $10 copay $20 copay $40 copay Two times pharmacy copay 60% of the allowed amount after deductible for most covered services
*If you are traveling or live outside the plan's provider service area, please call 800-810-BLUE (2583) for a list of local Preferred providers. You may also access a list of providers by logging onto www.bluecares.com and selecting ‘The Blue Card Provider Finder’.
GREYTHORN INC Phone: 425 635 0300
40 Lake Bellevue Fax: 425 635 0333
Suite 100 www.greythorn.com
Bellevue WA 98005 5/16
Dental Benefits Summary
You may seek care from any licensed provider, however, this plan is contracted with a network of Participating dentists. When you visit a Participating dentist, you have the opportunity to maximize your benefit plan with access to lower outof-pocket expenses. If you visit a Non-Participating dentist, benefits will be paid up to the plan's "Allowed Amounts." Calendar Year Deductible - Per Individual $50 Deductible Waived for Preventive & Diagnostic Treatment Preventive & Diagnostic Treatment - Oral Exams - Cleanings - X-Rays Basic Treatment - Fillings - Simple Extractions - Oral Surgery - Periodontics - Endodontics (root canal therapy) Major Treatment - Bridgework - Inlays/Onlays - Crowns - Dentures Waiting Period for Major Treatment Calendar Year Maximum Benefit - Per Individual None 50% of the allowed amount (after deductible) Yes 100% of the allowed amount (deductible waived)
80% of the allowed amount (after deductible)
$2,000
Pre-Determination of Benefits Before the covered person starts a course of treatment, it may be helpful for that person and his/her doctor to know in advance, how much of the treatment cost will be covered by the plan and how much will be the responsibility of the covered person. If the course of treatment is expected to be extensive, it is recommended that the covered person obtain a pre-treatment estimate for the insurance company to review. The covered person and his/her provider will be advised of the benefits payable.
GREYTHORN INC Phone: 425 635 0300
40 Lake Bellevue Fax: 425 635 0333
Suite 100 www.greythorn.com
Bellevue WA 98005 6/16
Greythorn, Inc. Regence Blue Shield Rates July 1, 2003 effective date Medical & Dental employee only: employee + spouse: employee + spouse & all children: employee + child(ren) (No spouse):
All W2 contractors are eligible for benefits. Benefits start on the first of the month following date of employment. Half the cost of the benefits will be deducted from the first pay of the month, half on the second. (For months with three pay periods, there will be no deductions in the third month.) Participants cannot select just medical or just dental or make any changes to the plan options.
$ $ $ $
Total 270.20 601.04 851.62 520.78
BENEFITS COSTS ARE DEDUCTED PRE-TAX UNLESS YOU ADVISE US OTHERWISE
GREYTHORN INC Phone: 425 635 0300
40 Lake Bellevue Fax: 425 635 0333
Suite 100 www.greythorn.com
Bellevue WA 98005 7/16
Online Provider Directories
Regence Blue Shield Medical Providers
1) Log onto www.regence.com 2) Select ‘Washington' 3) Select 'Our Providers' 4) Select 'Provider Directory' for most types of physicians and healthcare providers or select 'Pharmacies', 'Mental Health', 'Chemical Dependency' for those types of providers. 5) Select 'Regence BlueShield Provider Directory' under the Online Provider Directory heading 6) Customize your search by completing the requested information regarding your location and the type of provider for whom you are searching. Please note that you must either enter you city or zip code. Select 'Search Hints' for additional information on completing the fields. Please complete your Plan Type as 'PPO'. 7) Select 'Search Directory' 8) Results will appear
Regence Blue Shield Dental Providers
1) Log onto www.regence.com 2) Select ‘Washington' 3) Select 'Our Providers' 4) Select 'Dental Providers' 5) Select 'Online Provider Directory' under the Traditional Dental Plans heading 6) Customize your search by completing the requested information regarding your location and the type of provider for whom you are searching. Please note that you must either enter you city or zip code. Select 'Search Hints' for additional information on completing the fields. Please note that the Plan field must remain 'Any Plan' and you must choose a Dentistry specialty (e.g. Dentistry - General) from the Specialty field dropdown menu. 7) Select 'Search Regence Directory' 8) Results will appear
GREYTHORN INC Phone: 425 635 0300
40 Lake Bellevue Fax: 425 635 0333
Suite 100 www.greythorn.com
Bellevue WA 98005 8/16
Regence Blue Shield
Who To Call If You Have Questions
You (and any covered dependents) will be identified by the covered employee's social security number when using your benefits or when calling any of the numbers listed below:
Insurance Carriers Medical Regence Blue Shield Dental Regence Blue Shield Customer Service Customer Service (800) 548-8385 (800) 548-8385
GREYTHORN INC Phone: 425 635 0300
40 Lake Bellevue Fax: 425 635 0333
Suite 100 www.greythorn.com
Bellevue WA 98005 9/16
GREYTHORN, INC. FLEXIBLE BENEFITS PLAN SUMMARY PLAN DESCRIPTION
YOUR FLEXIBLE BENEFITS PLAN
We all have routine expenses that we must pay. Your Flexible Benefits Plan provides you with a way to spend the same dollars, but with less money! The Flexible Benefits Plan is made possible by Section 125 of the Internal Revenue Code, which allows your Employer to offer you a choice between receiving cash compensation or receiving nontaxable benefits. Traditionally, employees pay their share of any medical or dental insurance premiums or contribution amounts for group coverage offered by their employers through payroll deductions. These payroll deductions are usually made after taxes are deducted from employees' pay. Section 125 of the Internal Revenue Code allows you to voluntarily pay your share of premiums or contributions from your salary before taxes are deducted from your paycheck. As a result, taxes are applied to the balance of your paycheck after you have made your premium or contribution payment, lowering the overall tax bite. You pay less federal and social security taxes. Ultimately, you will wind up with more take-home pay than you would if you continued to pay your premium cost with traditional "after-tax" dollars. The following types of benefits may be covered by a flexible benefits plan: group term life insurance, medical insurance, dental insurance, accidental death and disability insurance, medical reimbursement plans and dependent care plans. Your Employer will let you know which benefits are covered by your Flexible Benefits Plan. By participating in the Plan, you receive, in benefits, a portion of what would otherwise be your cash compensation. This reduces the amount of taxable compensation you receive and, therefore, reduces your taxes. There is no additional cost to you, and in fact, your spendable income actually increases. This booklet explains how the Flexible Benefits Plan can work for you. It is written in simple language as a summary description. Although it describes several types of benefits that may be offered under your Flexible Benefits Plan, only the sections describing those benefits actually selected by your Employer are applicable to you. We hope this information will help extend your spending power. You should review it carefully as you budget your expenses each year. A copy of the full text of the plans on which this summary is based is available for your review at your Employer's office. If there is any conflict between the wording of this summary description and that of the corresponding text of the plan source documents, the wording of the full text shall govern.
GREYTHORN INC Phone: 425 635 0300
40 Lake Bellevue Fax: 425 635 0333
Suite 100 www.greythorn.com
Bellevue WA 98005 10/16
GREYTHORN DEDUCT BENEFITS PAYMENTS PRE TAX, USING A FLEXIBLE BENEFITS/PREMIUM ONLY PLAN:
Frequently Asked Questions:
Why should I deduct my insurance premiums pre-tax? By deducting your insurance premiums pre-tax, you will reduce your taxable income. This means, you will increase your take-home pay. It’s like giving yourself a pay increase. My insurance premium is minimal. Will I gain a benefit by participating in the plan? Yes. You will gain tax savings on any amount you defer through the Flexible Benefits Plan. I am concerned I will eventually be taxed on the benefits I defer pre-tax. Should I be concerned? Be assured you will never be taxed on funds you defer to your Flexible Benefits Plan. Remember, IRS allows your employer to offer you this plan. If my premiums are deducted pre-tax, will my Social Security benefits be effected? Since the premiums are taken prior to calculating Social Security taxes, it could reduce your benefit. However, it is usually less than $5 per month. If you put a portion of your savings into a retirement account you will generally have a larger benefit than counting on Social Security. SAVINGS ESTIMATE Annual salary Annual pre-tax insurance premiums Taxable income Estimated taxes (25%) After-tax insurance premiums Net Income Total Annual pay increase CALCULATE YOUR SAVINGS Total annual employee paid insurance premiums Estimated taxes (based on 25%) Total annual employee savings $ $ $ $ 16,000 0 16,000 ( 4,000) ( 1,200) $ 10,800 $ 16,000 ( 1,200) 14,800 ( 3,700) 0 $ 11,100 $ 300
GREYTHORN INC Phone: 425 635 0300
40 Lake Bellevue Fax: 425 635 0333
Suite 100 www.greythorn.com
Bellevue WA 98005 11/16
Eligibility And Enrollment WHEN YOU ARE ELIGIBLE You are eligible to participate in the Flexible Benefits Plan when you are eligible to participate in any one of the benefit plans covered by your Flexible Benefits Plan (described below). If you terminate employment after beginning to participate in the Flexible Benefits Plan, and you are later reemployed, you will be eligible to resume participation when you again become eligible to participate in any of the benefit plans covered by the Flexible Benefits Plan. However, if you are reemployed in the same plan year in which you terminated employment, you generally may not participate in the Flexible Benefits Plan again until the beginning of the next plan year. Depending on how your employer is structured, the owner-employees might not be eligible to participate in the Flexible Benefits Plan. In particular: if the employer is a partnership, partners are not eligible; if the employer is an LLC, members and managers of the LLC are not eligible; if the employer is a sole proprietorship, the sole proprietor is not eligible; if the employer is an S corporation, 2% or greater shareholders are not eligible. HOW TO JOIN THE PLAN You may join the Flexible Benefits Plan by completing and signing an enrollment form. On the enrollment form, you select the benefits you want and you authorize the Employer to reduce your pay for the cost of those benefits. You may join the Flexible Benefits Plan when you are first eligible. If you do not join then, you may not join until the beginning of the next plan year. Towards the end of each plan year, there will be an "open-enrollment" period during which you may complete an enrollment form for the next plan year. SPECIAL SITUATIONS Special rules apply if you take a paid or unpaid leave that is covered by the Family and Medical Leave Act. Special rules also apply if you serve in the Armed Forces, National Guard, or other uniformed service or if you go from reserve status to active duty. Also, if for some reason you are eligible for the Flexible Benefits Plan and the Medical Reimbursement Plan, but not any other group health insurance or medical plan of the Employer, then special rules might apply to you under the Health Insurance Portability and Accountability Act of 1996. Contact the Plan Administrator for more information if these special situations apply to you. YOUR ENROLLMENT FORM Your enrollment form applies for the entire plan year. You may change your enrollment form, and therefore change the amount withheld from your pay, during the plan year ONLY in the following limited circumstances: You may complete a new enrollment form each open-enrollment period.
40 Lake Bellevue Fax: 425 635 0333 Suite 100 www.greythorn.com Bellevue WA 98005 12/16
GREYTHORN INC Phone: 425 635 0300
You may complete a new enrollment form for the remainder of the plan year if you have a "change in status" under IRS rules, so long as the change you make is on account of and consistent with the change in status. A change in status includes: a change in your legal marital status (for example, you marry, divorce, legally separate, your spouse dies); a change in your number of dependents (for example, you have or adopt a child or a dependent dies); a change in employment status (for example, you, your spouse or dependent terminate, begin employment, take a leave of absence or switch between part-time and fulltime); your dependent satisfies or ceases to satisfy the requirements for being a dependent (for example, your child attains a certain age or loses student status); or your residence or worksite changes.
Generally to qualify as a change in status, the change must cause you (or your spouse or dependent) to lose or gain eligibility and coverage under a plan benefit. For example, if you get married and you switch your medical insurance from single coverage to employee+spouse coverage, you can complete a new enrollment form to change the amount withheld from your pay to equal your share of the cost for the employee+spouse medical insurance. If the cost you pay for a benefit changes significantly, you may change or cease the amount withheld from your pay to reflect the changed cost if your change qualifies under IRS rules. If you, your spouse, or dependent have a significant curtailment of health or other plan coverage, then you may change your Plan election if your change qualifies under IRS rules. If the Employer significantly improves or offers a new type of benefit during the plan year, you may complete a new enrollment form for that new or improved benefit package. You may complete a new enrollment form if your premiums increase under COBRA (see below under CONTINUATION OF COVERAGE). You may complete a new enrollment form if a court order requires you (or sometimes your spouse or other individual) to cover your child under any benefit plan affected by this Plan (or by such other plan covering your spouse or other individual.) You generally may also change your enrollment form during a plan year if you enroll in or lose eligibility for Medicare or Medicaid during the year or the health insurance portability requirements of federal law become applicable to your situation. The IRS strictly limits the circumstances under which you may make changes in your Plan elections during the plan year. The list above is a summary of the circumstances and does not discuss all of the legal requirements. (If you would like a copy of the Plan provisions or the IRS regulations, please ask the Employer). Note, importantly, that if you experience a circumstance allowing a mid-year change in your Plan election, such changed Plan election must be consistent with your changed circumstances. You will be able to make a change only
GREYTHORN INC Phone: 425 635 0300 40 Lake Bellevue Fax: 425 635 0333 Suite 100 www.greythorn.com Bellevue WA 98005 13/16
if the Employer, in its own discretion, concludes that a change is allowed and will not jeopardize the tax benefits of this Flexible Benefits Plan. There are limited circumstances when your Plan participation will change automatically midyear, without your consent. This will increase or decrease the amount withheld from your pay to reflect the new circumstance. These automatic pay reduction changes include, for example: If the premium you pay for health or other coverage is changed mid-year; If a court order requires coverage for your child; or
If the change is necessary to keep the Plan benefits tax-free or otherwise is necessary to comply with the law. BENEFITS YOU CAN SELECT The Employer will allow you to pay for the following benefits with pre-tax dollars, through the Flexible Benefits Plan. Regence Blue Shield Insurance; Any individual insurance policies that qualify under IRS rules. Insurance If you are covered under the Regence Blue Shield Insurance, you are eligible to elect to have your share of the premiums for your coverage under that plan withheld from your pay on a pre-tax basis. The benefits provided under the Regence Blue Shield Insurance are described in a separate booklet.
Miscellaneous
EFFECT ON YOUR INCOME The Flexible Benefits Plan has been designed so that your contributions will be not be subject to income tax or to Social Security tax and your reimbursements will also not be taxed. The Employer will notify you if these intended tax advantages change.
EFFECT ON YOUR SOCIAL SECURITY TAX AND BENEFITS Social Security taxes (on your paycheck stub these may be called "FICA" or "Medicare" or "Social Security") are deducted from your pay up to a specific amount each year. This amount is called the Social Security Wage Base. Because your income is reduced by the amount of your pre-tax premium payments and the amount you contribute to the Flexible Benefits Plan, the amount of FICA deducted from your pay will also be reduced. If you earn more than the wage base, it may not be reduced, depending on the amount you deposit.
GREYTHORN INC Phone: 425 635 0300 40 Lake Bellevue Fax: 425 635 0333 Suite 100 www.greythorn.com Bellevue WA 98005 14/16
If you pay less social security tax, you could possibly earn a lower social security benefit. However, the difference will probably be small. If you are concerned about this issue, you may contact the Social Security Administration for more details on calculating your Social Security benefits. WHAT HAPPENS IF YOU ARE ON A LEAVE OF ABSENCE If you are on an unpaid leave of absence on the first day of a plan year, you cannot participate in the Plan until you return to full-time active status and complete an enrollment form. During the plan year, if you go on a leave of absence with pay, deposits will continue to be made as long as you are being paid. If you are on an unpaid leave of absence, you will not be permitted to make deposits until you return to full-time active status. As indicated at the beginning of this Summary, however, if you are on a federal Family and Medical Leave or veterans' leave, your participation rights in the Plan might be enhanced. If you take an approved unpaid leave of absence, and you remain eligible to participate in the Flexible Benefits Plan, then your Employer might allow you to increase the amount withheld from the last paycheck or two before your leave to cover what would have been withheld from your pay during the leave; in other words, you can pre-pay your contributions. You can only pre-pay the amounts that would have been withheld during the remainder of the plan year. In some special cases, you may be allowed to pay by check during the leave, or you may be able to have extra amounts withheld from your pay once you return. You Employer will let you know if one of the special situations applies to you. PLAN AMENDMENT OR TERMINATION The Employer may amend or terminate the Flexible Benefits Plan, or any benefit plan, at any time. ROUTINE QUESTIONS If there is any question about a claim payment, an explanation may be requested from the Committee administering the Plan on behalf of your Employer. The Committee may be contacted at: Greythorn, Inc. 40 Lake Bellevue, Suite 100 Bellevue, WA 98005 Tel: 425 635 0300 James.dixon@greythorninc.com
GREYTHORN INC Phone: 425 635 0300
40 Lake Bellevue Fax: 425 635 0333
Suite 100 www.greythorn.com
Bellevue WA 98005 15/16
REQUESTING A REVIEW OF CLAIMS DENIED If all or part of your claim for dependent care reimbursement is denied, you will receive a written notice of the denial and an explanation. You should receive the notice within 90 days after the claim is filed. In special cases, another 90 days can be taken to process the claim. If this is the case, you will be notified of the reasons for the delay. If you do not receive a denial notice within the 90-day period (or a notice of the delay in processing your claim), you can consider that your claim has been denied and can proceed with the review procedures for denied claims, as listed below. In the event a claim has been denied in whole or in part, you can request a review of your claim by the Plan Administrator by submitting a written request for review to the Plan Administrator within 60 days after you receive notice of denial of the claim. When requesting a review, please state the reason you believe the claim was improperly denied and submit any data, questions or comments you deem appropriate. The Plan Administrator will re-evaluate all the information and you will be informed of the decision in writing in a timely manner, usually 60 days. In addition, you may review pertinent documents and have a representative present at any meeting concerning your claim. You will receive a written notice of the Plan Administrator's final decision within 60 days after you request a review (or 120 days in special cases, in which case you will receive a written notice of the delay). COMPLAINT PROCEDURE Should any dispute arise about a claim that you have filed, you may contact the Plan Administrator. Be sure to include your full name, address and social security number on any correspondence.
GREYTHORN INC Phone: 425 635 0300
40 Lake Bellevue Fax: 425 635 0333
Suite 100 www.greythorn.com
Bellevue WA 98005 16/16