As of January 1, 2024, all new or renewing customers with Employee Spending Accounts in their plan will be invoiced an amount for their Spending Account Floats. If you need more information, please reach out to your Advisor or support@simplybenefits.ca
Spending accounts have a float which can also be thought of as a reserve to ensure there are always sufficient funds to pay your employees' spending account claims.
On your first invoice (the census invoice) with Simply Benefits you will see a charge applied for each division with spending accounts. The spending account float is calculated at 15% of the total spending account allocation for that division but is always rounded up to the next $100. As you add staff to your plan, Simply Benefits will keep track of this and automatically adjust your float next January 1st (or when your plan renewal takes place) to ensure it can be maintained. It is important to remember that this is handled on a per-division basis and that the float is not actively withdrawn from and topped up monthly - it is held in reserve and only updated on January 1 or at renewal, whichever comes first.
For example, if your company has two divisions with spending accounts (Division 1 and Division 2), with five employees in each division and a total spending-account budget of $1000 per employee, each division will be charged $800 for the float, with a total of $1600 charged to the group:
$1000(Total Spending Account Allocation) x 15%(Spending Account Float Calculation) = $150
$150 x 5 Employees = $750 per division
$750 rounded up to $800
$800 x 2(Divisions) = $1600
Once your float has been established, it will only change on January 1st when spending accounts refresh, or when your plan renewal takes place.
For more information about your Invoices, go here: Understanding your Invoices (Employers)Frequently asked questions
Will Floats be drawn from throughout the year based on usage?
Answer: No. We will hold the float in reserve so that you don't have to reconcile changes on a monthly basis. The only time your float will be adjusted is annually on January 1 when Spending Accounts roll over, and when your plan renews.
Why do Spending Accounts require a float?
Answer: We collect a float to ensure one month's anticipated spending account claims funds are always on account.
What happens with the float if Spending Accounts are removed from a plan or if the plan terminates?
Answer: We will include any spending accounts paid to date on your final invoice as per our usual invoicing process. We will release your spending account float after it is confirmed there are no outstanding spending account claims and your account has finished being reconciled. These will likely be returned within 30 days of your final invoice, but we could hold the float for up to 60 days.