Use Cases
The COVID-19 situation is an unparalleled global event that is putting tremendous pressures on people, families, businesses and the economy at large.
With the Employee Care Card, employers can show their employees how much they care with targeted financial assistance to address their needs during this challenging time. The program can be used to support both pre- and post-tax distributions of financial assistance.
| Disaster relief payments | Emergency spending | Employee wellness | |
| Tax status | Pre-tax | Post-tax | Post-tax |
| Eligible expenses |
Qualified disaster payments for “reasonable and necessary personal,family, living or funeral expenses incurred as a result of COVID-19” |
Fully customizable by employer; expenses can be restricted merchant / spend category to address most critical employee needs |
Fully customizable by the employer, to reward employees with wellness services like gym memberships, fitness activities, or more |
| Funding | Employer-funded | Employer-funded | Employer-funded |
| Employee eligibility | Employer determines | Employer determines | Employer determines |
| Contribution limits | None | None | None |
|
Sustantiation |
No | No | No |
| Plan document | No | No | No |
|
Nondiscrimination |
Not required | Not required | Not required |
| Plan duration |
Must begin on or after |
Employer determines | Employer determines, typically 12 months |