PTO Exchange: Per Transaction

Transaction (Service) Fee

For the PTO Exchange service, pricing is determined by employee usage on a per-transaction basis. Example transactions include exchanging PTO hours for a contribution to a retirement account, education loan, or charitable organization. The advantages of this model are twofold:

1. PTO Exchange can be implemented without any upfront investment or monthly license fee commitments (a modest implementation fee may apply);
2. The model is based on actual employee usage and value delivered.

PTO Exchange can also provide adjudication services for a set fee / month to manage compliance on leave-sharing programs.

EXAMPLE

MONTHLY FEE:

For a company with 1000 eligible employees there is no monthly PEPM fee ($0).

WITHOLDING:

Per IRS and regulatory guidance, a nominal forfeiture is required on each PTO exchange transaction.

PTO Exchange is compensated as part of the service fee.

LPA: Per Employee

Per-Employee-Per-Month (PEPM) Rate

The LPA (Life Planning Account) service is priced based on the number of employees who will receive the LPA benefit. For every eligible employee, a modest recurring charge is used to calculate total fees per month. The advantages of this model are simplicity and cost certainty.

EXAMPLE

MONTHLY FEE:

For a company with 1000 eligible employees, the PEPM for the LPA service would simply be 1000 * $/employee each month.

WITHOLDING:

.LPA benefits are taxable. As the benefit is used, taxes will be withheld according to each employee's standard tax witholding.

Combination

You can also combine the flat monthly (PEPM) and transaction (service) fee models. The advantages of this approach include the ability to dial either one up or down depending on your specific situation.

EXAMPLE

MONTHLY FEE:

For a company with 1000 eligible employees, the PEPM fee would simply be 1000 * $/employee each month.

WITHOLDING:

Per IRS and regulatory guidance, a nominal witholding is required on each PTO exchange transaction.

In this example, the company and PTO Exchange share the service fee.