Employer-sponsored accounts can be prorated, allowing newly eligible employees to receive a proportional amount of the total funding if they become eligible partway through a funding period.
Funding is prorated down to the day for monthly accounts and down to the month for quarterly, semi-annual, and annual accounts.
For example, imagine you fund employees $120 annually that becomes available on January 1 and expires on December 31.
- If proration is turned on, an employee who becomes eligible in April will receive $90—because they’re eligible for 9 out of the 12 months.
- If proration is turned off, an employee will receive the full $120 regardless of when during the year they become eligible.
Please note that if an account start date is in the middle of a funding period, and proration is turned on, all employees will receive a prorated amount when you launch the account.