As of June 1, 2023, all new accounts with Employee Spending Accounts will be invoiced to initiate 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 on 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.

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 allocation 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)