Manager approval accounts require pre-approval before employees can submit claims for certain expenses. For instance, this may be necessary for a tuition account. This process ensures that employees discuss those expenses with their managers beforehand, helping to ensure alignment with company policy and preventing the submission of non-compliant claims.
The demographics file your team sends to Forma lists who the manager and back-up manager contacts are for each employee.
When an employee submits a pre-approval request, the manager will receive an email notification upon submission and a reminder email on day 5 if no action has been taken yet. If there is no response to the pre-approval request within 14 days, an email will be sent to the back-up manager.
To respond to a pre-approval request, follow the steps below:
- Log into your Forma account
- From the Home screen, click the Pending tasks button
Under Action required you will see any pre-approval tasks that are awaiting a response. Click Review Details for more information about the request.
- After reviewing the details of the request, select Approve or Reject.
An email will be sent to the employee with your decision.
If the pre-approval request is rejected, you will be required to enter a comment. That comment will appear on the email sent to the employee. If the request is approved, no comment is entered.
After a pre-approval is approved
If a pre-approval request is approved, the employee may submit a claim for reimbursement after completing the course or program.
Please note the following:
- One claim per pre-approval: Only one claim can be submitted per approved request.
- Unused funds: If the final expense is less than the approved amount, any remaining funds will be returned to the employee’s Available to request balance.
- Timing matters: Reimbursement is applied based on the year the claim is submitted, not the year the pre-approval was granted.
Consider pre-approvals to be paid from next period balance.
Pay from next period balance
If this option is enabled for an account, an employee can submit a pre-approval request that will be paid from their next benefit period's balance.
When they select this option:
- The current period balance remains available and is not affected by the pre-approval request.
- The approved amount is reserved against the next period's balance.
- The employee cannot submit a claim for the pre-approval until the next benefit period begins.
Example: If the current benefit period ends December 31 and the next period begins January 1, a pre-approval paid from the employee's next period balance will be reserved against their January 1 balance. They can submit the claim once the new period begins.
How timing impacts employee balances
If an employee receives pre-approval in one period but submits their claim in the following period, the reimbursement will be deducted from the current period's balance.
Example:
- In Q4 2026, an employee has $5,250 available to request and receives a $4,000 pre-approval.
- The $4,000 is allocated to the employee’s available to redeem balance.
- If the claim is submitted in 2027, the $4,000 will be deducted from the 2027 balance, not 2026.
As a result:
- The employee’s 2027 Available to request balance will be reduced to $1,250
- The employee will not have the full $5,250 available to request again in 2027