Benepass platform funding is the process that ensures sufficient funds are available for employee benefit spending. The goal of Benepass' funding process is to ensure your account never runs out of funds and there are no program interruptions.
When programs run out of funds (as applicable):
- Card spending is immediately deactivated for all employees
- Reimbursement payouts are stopped and liabilities continue to accrue
- HSA contributions cannot be made for deductions already removed from employees' paychecks
Benepass takes this situation extremely seriously and aims for it to occur 0 times in the course of doing business.
Process
To ensure your program never runs out of funds, Benepass automatically calculates a "safety threshold" value to indicate when additional funding is needed.
This threshold is calculated to ensure that there is enough money in your account to continue to cover your financial obligations to employees for at least 1 week while additional funds are being transferred. Given the variable nature of transfer timelines, this buffer allows enough time for funds to land independent of cutoff times, spending spikes, and bank holidays.
Upon request, Benepass can increase this buffer.
Benepass aims to pull enough funds during each funding event to cover your financial obligations to employees so that funds do not have to be immediately pulled again in under a week.
These values are calculated based on the actual composition of the specific benefits in your program in real time. Factors it considers include:
- Total spendable benefit balances
- Unpaid liabilities (approved reimbursements and HSA deductions)
- Upcoming changes to the program (e.g. increases in future contribution amount)
Over the course of the year, it's common for funding amounts to fluctuate slightly to maintain alignment with changes in employee spending and benefit enrollment patterns.
This process ensures there is always a safe balance without requiring you to fund your account in full up front.
Automated vs. manual account funding
Benepass provides two options for funding your program:
- Automated funding, where Benepass pulls funds into your account on a regular cadence, or;
- Manual funding, where your team will wire funds into your account regularly
Benepass strongly recommends automated funding, as it ensures funds are available for your employees without any intervention from your team. Manual funding requires ongoing review and maintenance from your team for the duration of your program.
With automated funding, you can expect account funding pulls typically every two weeks. Fluctuations to spending patterns may increase or decrease the frequency.
Recommended funding levels
As a courtesy, Benepass does not require that your program is funded to 100% and will allow you to hold a balance at a lower proportion of the total amount employees can spend. Benepass will dynamically adjust this value to ensure that your program always has a safe level of funds as spending, contributions, expirations, and enrollment numbers change over time. This ensures you are not in a position where you are unable to fulfill your financial obligations to employees. If requested, Benepass is able to instead ensure your program is funded at 100%.
Common questions
Can I set an account funding limit?
Yes, upon request, Benepass can set a limit for maximum funding pulled at one time.
Will I be notified about platform funding pulls?
Yes, if you are an administrator for your company's Benepass account, you will receive email notifications regarding platform funding pulls.
Can I change how often Benepass pulls account funding?
The goal of Benepass' funding process is to ensure your account never runs out of funds. Funding pulls are initiated in accordance with key determining metrics such as spendable balance or upcoming contributions, and are calculated with intention and care. If you would like to discuss the frequency of platform funding on your account, please contact your Customer Success Manager.
Where can I see a history of account funding?
Your platform funding history is accessible at any time through the Admin Dashboard. To view your funding history:
- Navigate to the "Funding" tab
- Review payments under "Transactions"
Each funding record includes detailed information about the transfer, and you'll also receive email notifications from Benepass for every ACH transfer initiated.
What contributes to changes in key metrics, such as total spendable balance or recommended platform balance?
Benepass will dynamically adjust these values based on changes to your employee population, your benefit configurations, or changes in spending habits. Common examples include hiring a large employee cohort, adding or removing benefits, or changing benefit schedules.