What should Alice look like in payroll?
In general, Alice benefits are set up with the following:
Alice Pretax Transit
Alice Pretax Parking
Reimbursements or Earnings:
Alice Post Tax Transit
Alice Post Tax Parking
Mass-transit & Parking:
There are two numbers that you should look out for in your payroll. A negative number (deduction) and a positive number (reimbursement). These two numbers should always be the same for any pay period when employees are using their personal connected card to pay for expenses.
Example: Sally has spent $121 on mass-transit expenses on her personal credit card connected to Alice. She confirmed these as related to her commute to and from work. She'll have a deduction of -$121 (pretax) and a positive reimbursement of $121 (post-tax). Alice shields Sally's expenses from income tax right in her paycheck, saving her about $36 in income taxes!
When employees spend with Alice Card, their reimbursement happens at the point of sale.
Alice will ensure they are deducted (pretax of course) on an upcoming paycheck. In this case, you will only see the deduction in payroll without reimbursement. We'll withdraw this amount from your connected payroll bank account after the employee deduction runs, to cover the costs fronted by Alice for the purchase.
Example: Sally has used Alice card and spent $128 on mass-transit expenses. Alice covered this expense like a credit card (with no fees). She'll have a deduction of -$128 (pretax). Alice will withdraw this $128 from your payroll bank account. Sally saved about $36 on income taxes right in her paycheck by spending with Alice Card! She only has to contribute what she actually used, and there's no balance on a card to worry about.
What if I see a number that looks higher than normal?
Sometimes Alice will roll amounts over from one pay period to another. One reason for this may be if an employee's credit card is disconnected from Alice. In this case, the employee may have two months' worth of eligible parking expenses show up in one pay period after they reconnect their card.
Example: Charlotte spends $150 each month on a parking pass for commuting. She confirms two months' worth of transactions on the same day from her Alice dashboard. On the next pay period, her deduction will be -$300 and her reimbursement will be $300. These numbers represent 2 months' worth of spend limits, applied in payroll on one check.