For your finance team: how Alice works for employers

Alice is a pretax commuter benefit built for employers of restaurant and frontline workers. This is the operating model for finance and payroll teams.

What makes Alice different

• Most commuter benefits are designed for office workers on fixed schedules. Alice is built for variable shifts, tipped wages, hourly pay, multiple worksites, and pay that swings week to week.
• Alice sets each employee's pretax commuter deduction automatically each pay period, based on confirmed eligible spending.
• Employees can connect their own personal credit or debit cards, request Alice Card (a Visa commercial card), or both.
• No open enrollment, forms, math, or use-it-or-lose-it. All W-2 employees are eligible, including temp workers.
• Alice runs in English and Spanish, by text, email, or phone, and is designed for one-handed use on a break.
• Alice connects to most major payroll systems, so you connect once and we handle the rest.

How it works for employees

If an employee spends on their own connected credit or debit card: Alice uses the confirmed eligible spending to add a pretax deduction and an equal post-tax addition to that paycheck. The pretax line shields income from federal, state, and FICA taxes. The post-tax line puts the dollars back in take-home pay. Net effect: the employee keeps more of what they make.

If an employee spends on Alice Card: Alice records a pretax deduction for the amount spent. Your payroll provider holds that amount in your payroll bank account. Each payroll, Alice sweeps that amount into your company's Alice plan account, the account that paid for the purchase, similar to any other pretax benefit contribution.

Your Alice plan account holds program funds at Fifth Third Bank, N.A. (Member FDIC). Alice Card is issued by Celtic Bank and powered by Stripe. These funds are not payments to Alice and are not our fees. They come from your employees' pretax deductions.

You see a transfer notice for each transfer. The Alice plan account balance is visible on your Alice Admin Dashboard.

Your company keeps a reserve amount in the plan account so it does not go negative between a purchase and the next payroll sweep. Most sweeps cover recent spend. Occasionally a sweep tops up the reserve as new employees enroll in Alice Card.

Every withdrawal email lists exactly what was pulled and why. A monthly finance report rolls it all up for your administrators.

If an employee uses both: Their pretax deduction is split. Part flows back to them on the paycheck (matching their personal-card spend), and part routes to your Alice plan account (matching their Alice Card spend).

What it costs

Alice's only fee equals your employer payroll-tax savings on the pretax deductions that were processed. We multiply the deductions in your payroll system by the statutory federal, state, and local payroll-tax rates that apply to each employee's location. That number is your bill.

Because the fee equals the savings, your net cost is $0 out-of-pocket.

We bill the payment method on file each pay period or monthly (your choice). We email an invoice with a spreadsheet showing the exact calculation.

Why Alice Card withdrawals aren't invoiced

They are not fees. They cover your employees' Alice Card purchases and are funded by their pretax deductions. We provide a withdrawal breakdown in a spreadsheet with each withdrawal email and again in your monthly finance email (around the 2nd or 3rd of each month).

Alice Card reserve deposits

When an employee requests Alice Card, your company transfers a small reserve deposit to its Alice Card reserve account so the card can be issued. That money belongs to your company. It is not a fee to Alice and it is not employee pay.

When the employee is terminated, the reserve is credited back to your company. The reserve amount varies by location based on prior spending.

Need help?

Email admin-support@thisisalice.com or call (929) 552-4625.

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.

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.

Trademarks, brands, and product names referenced in this article are the property of their respective owners. References are for descriptive purposes only and do not imply endorsement. For definitive information about a third party's products or services, contact that party directly.

Alice does not provide tax, legal, or financial advice. Consult your own tax preparer, lawyer, or financial advisor for guidance specific to your situation.