You’re providing a new, low-cost, high-value benefit that employees love, in an age of takeaways and cost-shifting.
FICA Tax Savings
Implementing the Prepaid Benefits Card has resulted in increased employee participation, as well as increased annual election amounts year after year. Employers have seen immediate increases of 20 - 40% in participation, and annual contribution increases ranging from 10 - 50%. That translates into significant FICA tax saving that in some cases, can pay for the program.
Advanced auto-substantiation technologies can verify the eligibility of many transactions, minimizing the need to request receipts from the cardholder. Letters requesting receipts are sent only when necessary.
Cash flow friendly
Cardholder spending accounts (e.g. FSAs) are directly debited for eligible expenses, eliminating “out-of-pocket” cash payments and then waiting for reimbursement.
Convenient and easy to use - Eliminates claim forms
Simple to track - balances are available online 24/7 - this detailed tracking can be used to predict more accurate (and increased) annual election/salary reduction amounts in subsequent years.