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.

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<aside> 💡 Please note that because JOON does not offer FSA/HSA benefits and does store medical data, we do not offer “pre-tax” reimbursements. Learn more about pre-tax, taxable, and non-tax benefits

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Purchase Reports

At the end of each benefits cycle, JOON ****generates an invoice that includes subscription fees and reimbursements segmented by department and taxability. Once the invoice is paid, JOON reimburses each benefits recipient on an employer’s behalf.

You will receive a Purchase Report with a breakdown of all eligible purchases by benefits recipient, class, and taxability. 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) By the end of 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 benefits recipient – with the following recommendation based on the IRS Publication 15-B guide to Fringe Benefits (for taxable reimbursement) and the IRS Publication 535 guide to Business Expenses (for non-taxable reimbursements):

<aside> 💡 If a benefits recipient 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 should 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).

Report timelines

We typically generate reports on a cash basis. So an annual report will include invoices from December of the prior year through November of the current year, because reimbursements are distributed in the month invoices are paid following service.

If you requested a quarterly purchase report from your Account Manager, it will follow this schedule:

You will receive the quarterly report the month after the quarter ends.