JOON is used by companies big and small to run flexible and automated wellness benefits programs. While each employer takes a slightly different approach, all are able to handle tax withholdings for taxable and non-taxable benefits within their payroll and expense reporting systems. Please note that because JOON does not offer FSA/HSA benefits and cannot store medical data, we do not offer “pre-tax” reimbursements.

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<aside> 💡 Learn more about pre-tax, taxable, and non-tax benefits

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Purchase Reports

Employers using JOON can request a Purchase Report at any time. See an example.

Current workflow (manual)

Customers use JOON’s Purchase Report to either individually or batch reconcile tax withholdings for taxable and non-taxable reimbursed benefits.

Future workflow (automated)

Beginning in 2022, JOON will be syncing with the most popular payroll providers to automate one or more steps of this process.

Report Details

Our Purchase Report provides a log of all purchases – summarized per employee recipient – with the following recommendation based on the IRS’ guide to fringe benefits*:

<aside> 💡 If an employee make both eligible taxable and non-taxable purchases, our report will automatically allocate their allowance toward non-taxable reimbursements to minimize tax liability.

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Taxable reimbursements are then imported into payroll for tax withholding (see next section). Non-taxable benefits are accounted for by finance teams within their accounting software (e.g. Quickbooks).

Payroll (taxable reimbursements)

To record off-platform taxable reimbursements and withhold taxes accordingly, please consult with your tax professional and payroll provider. We have compiled the following resources publicly available online for reconciling taxable reimbursements. Note: the process and help center articles are frequently focused on reconciling gift cards, which is essentially how taxable benefits should be treated.  You will need to determine the timing of the reporting of these taxable reimbursements in order to ensure compliance with your payroll tax filing and deposit requirements.

<aside> 💡 Our operations team can accommodate specific file templates with unique Employee IDs. Just let us know and we’ll customize your Purchase Reports at no additional cost.

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Payroll instructions

Expensing (non-taxable reimbursements)

To record off-platform non-taxable reimbursements as expenses, please consult with your F&A teams and tax professional. We have compiled the following resources publicly available online for reconciling non-taxable expenses.

<aside> 💡 Our operations team can accommodate specific file templates with unique Employee IDs. Just let us know and we’ll customize your Purchase Reports until the process is fully automated at no additional cost.

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