Pre-tax spending 101
Every $1 spent pre-tax increases your business’s available cash flow.
Cash flow management is king
Managing cash flow is a challenging part of running a business. Savvy business owners know that maximizing pre-tax spending is one of the easiest ways to increase your operating capital.
How? It’s simple: reduce the amount of your payroll that is exposed to taxation. Alice helps employees shield as much of their income as possible, through effective and automated pre-tax spending.
The Federal Insurance Contributions Act (FICA) is the federal law that requires you withhold three separate taxes from the wages you pay your employees. In addition, FICA requires you to pay the employer’s portion of two of these taxes. The result is an additional 8% that the business owner has to pay.
How does Alice help reduce your tax burden?
There are 5 everyday expenses that are exempt from being taxed: These expenses are traditionally grouped into three separate pre-tax programs that rely heavily on forms and paperwork, instead of technology. These programs were not built for all employees as many don’t meet hourly minimums, or they churn before they’re eligible.
Alice was built to enable hourly workers to take advantage of these write-offs while removing the administrative burden on HR teams by leveraging technology:
Instead of juggling multiple programs, employes just swipe their preferred card. When pre-tax eligible expenses occur, we confirm them via text.
Alice makes sure it’s protected from taxes in the next pay period, saving the business money while making employees happy.
Interested in Alice?
Do you want to bring Alice to your company? Let us know and we’ll be in touch soon!