How much does Alice cost?
Alice is free for employees and cost-neutral for employers. Most employers see a net cost to the business of $0, because Alice's only fee equals the payroll-tax savings the government gives you when your team participates.
Free for employees
Employees pay nothing to use Alice. They can connect as many of their own credit or debit cards as they want and request Alice Card at no charge. When they spend pretax on eligible parking and transit, those dollars come out of gross pay before federal, state, and FICA taxes, so they keep more of what they make. Most frontline employees see roughly 20% in "cash back" on eligible commuter spending — actual savings depend on each person's tax situation (see the footnote below for what "cash back" means in Alice's materials).
Cost-neutral for employers
When your employees take a pretax commuter deduction, your business stops paying employer payroll taxes — federal, state, local, unemployment, and FICA — on that portion of wages. Alice calculates that employer payroll-tax savings and bills you that exact amount as our service fee.
Because the fee equals the savings, the line items wash out on your P&L. You are offering a real benefit that raises take-home pay for your team at no additional out-of-pocket cost to the business.
How billing works
A few days after each payday, once your payroll system confirms the pretax deductions that ran, Alice calculates the bill. We multiply the deductions by the statutory employer payroll-tax rates that apply to your employees' work locations, and that figure is what we charge. You can be billed each pay period or monthly. Every invoice comes with a spreadsheet showing the exact calculation.
Questions about a specific invoice? Reach the Alice admin team at (929) 552-4625 or admin-support@thisisalice.com.
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.
Specific benefits, election rules, and run-out periods depend on your employer's plan design. Check with your HR team or plan administrator for details.