Direct deposits are automated clearing house (ACH) payments that are sent directly to your employees' checking accounts. At this time, this feature is limited to the U.S. For global employees, reimbursements are processed via payroll.
To receive direct deposit reimbursements from Forma, employees must link a personal bank account to Forma, as all approved claims are reimbursed via direct deposit. Without a linked account, reimbursements cannot be processed.
To enable and maintain direct deposit reimbursements, employers are required to pre-fund the associated accounts. Specifically, you must deposit an amount equal to at least 10% of the total estimated Covered Benefits budget for the year (the “Minimum Balance”). This initial deposit is due prior to your go-live date.
Forma will automatically monitor and maintain the Minimum Balance by transferring additional funds from your designated bank account (“Customer’s Bank Account”) to the Deposit Account on a weekly basis as needed.
At the end of your contract term, any unused funds remaining in the Deposit Account will be returned to you or your designated bank account within 30 days of contract expiration or termination.
When will employees receive their reimbursement?
Forma collects all unpaid approved claims and initiates reimbursements twice per week on Sundays and Wednesdays. It takes approximately 2-3 business days to process the payments. Typically, employees should see reimbursements posted to their bank accounts on Tuesdays or Fridays as long as they’ve linked their bank account and there are no other delays.
As claims are reimbursed, those funds are pulled directly from the 10% pool of funds in your Deposit Account.