How does Alice show up on my pay stub?

Alice shows up on your pay stub as a pretax deduction, and if you used a connected card, a matching post-tax addition. The deduction is money you are not taxed on.

There are two ways to spend with Alice: your Alice Card or your connected card (your own credit or debit card). Alice uses your spending history to set your benefit amounts automatically. Both ways save you the same amount of money, but each looks a little different on your paycheck.

A pretax deduction means that money was set aside before taxes were calculated. Most workers in NYC or LA keep only 80% of wages and tips. The other 20% goes to taxes.

You keep 100% of the deduction instead of about 80%, because you do not pay federal, state, local, Social Security, or Medicare taxes on it. The amount is based on what you spend on parking and transit.

If you spend on a connected card

Pretax deduction

Your pay stub shows a pretax deduction based on what you spent on parking and transit.

Post-tax addition

This line is often shown as "reimbursement".

• After the taxes come out, Alice puts the amount set aside back.
• Your pretax deduction goes straight into your take-home pay.
• If your deduction was $100, you got $100 as a reimbursement.

If you spend on Alice Card

Pretax deduction

The amount Alice sets as your pretax deduction is never taxed. You don't pay those taxes on the amount Alice sets for you.

Alice Card

• Your pretax deduction goes into your employer's Alice plan account, which paid for what you spent on Alice Card.
• You do not pre-fund Alice Card. Your pretax contribution covers what you spent, the same way any other pretax benefit works.
• You will not see a post-tax addition on your check, because the card already paid for the purchase.

If you use both

Pretax deduction

Your pretax deduction is based on the amounts you spend on both cards and is protected from taxes.

Post-tax addition and Alice Card

Your pretax money is split up. Part of it covers what you spend on Alice Card, and the rest goes into your paycheck.

Where does it show what I saved?

This math is not spelled out on your pay stub. Restaurant and frontline workers typically lose about 20% to taxes. So if you have a pretax deduction of $100, you save about $20.

Alice gives you an estimate of your savings each time you confirm a purchase. Alice also sends you a message with what you spent and your total estimated savings for that pay period.

The actual amount you save depends on your personal tax and income situation. U.S. federal income tax rates range from 10% to 37%. State and local tax rates vary.

How can I check that I saved?

Compare two paychecks with the same hours and pay rate, one with Alice and one without. You'll see that you're paying less in income taxes on the paycheck with Alice deductions. Here is an example:

Need help?

Text or call (888) 431-4355 or email support@thisisalice.com.

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Savings shown or implied — including any reference to "cash back" or take-home pay — are illustrative. Actual savings depend on your tax rate, benefit elections, and eligible spending each pay period. "Cash back" in Alice's materials refers to the federal, state, and FICA payroll taxes you don't pay on eligible commuter spending. It is income tax you keep, not a cash payment from Alice, your employer, or any third party. Alice does not provide cash back, rebates, or any direct financial benefit in connection with the Program. Alice does not provide tax, legal, or financial advice. Consult your own tax preparer, lawyer, or financial advisor for guidance specific to your situation.

Pretax Hero Visa Commercial Card is powered by Stripe and issued by Celtic Bank. Program funds held at Fifth Third Bank, N.A. (Member FDIC). Use of card and program is subject to the cardholder terms and related agreements presented at issuance.