Employee Deduction Options

depending on how you would like to set up campaigns, you can opt to have your employees pay for some or all of their portion of the campaign paid by company in full if you want to maximize the impact of this benefit, you can pay for the entire thing this is easy to set up and administer with tidy, with no deductions handled of any kind this is the best for employees as well advantage easy to administer and employees really love it advantage can withdraw an employee's credit anytime disadvantage most expensive overall example acme inc gives each of its employees $150 per month to use towards cleanings, enough to cover cleanings anywhere in the country if they don't use the benefit, they can withdraw it back to their company account partially paid by company if you would like to pay for only some of your employee's cleanings, you have 2 options to do this partial payment option 1 pay for all eligible employees to get partial credit, without any deductions advantage easy to administer and employees love it advantage can withdraw an employee's credit anytime disadvantage higher admin fees example acme inc gives each of its employees $40 per month to use towards cleanings if they don't use the benefit, they can withdraw it back to their company account partial payment option 2 pay only for employees who accept a deduction on their paycheck advantage lower admin fees disadvantage cannot claw back credit (as employees have partially paid for it) disadvantage typically less compelling for employees due to deduction example acme inc covers 80% of the cost of cleanings each month for its employees, up to $500/month john takes advantage of this benefit, having $100 from his paycheck to receive $500 in pre tax credit paid by employee (not recommended) if you like, you can opt to allow employees to deduct a certain amount each month from their paycheck to tidy credit this is for more limited usecases, for example, those employees who are eligible to deduct home office expenses the irs provides some guidance about this here there may be other usecases of this to support, unrelated to tax treatment, such as employer matching programs to make this work, the employer would need to set up the deduction on the employee's paycheck, and that employer would still need to transfer the funds to tidy however, because the benefit is "paid for" by the employee, this ultimately costs the company less advantage low cost only the admin fee is paid by the company advantage low cost only pay for employees who use it disadvantage the least compelling of available options for employees disadvantage no tax advantages for most people example john can request to get a $200 credit to clean his workspace in lieu of $200 salary each month