In PayWow, benefit plans are categorized under Health and Life, Retirement and Savings, and Other. Through these categories, employers can manage and organize the plans they offer their employees.
Here are the benefit categories and types available in PayWow:
Health and Life
Medical Insurance (Pre-Tax): Medical insurance provides health coverage benefits for employees by paying a portion or all of their medical expenses.
Health Savings Account (Pre-Tax): A health savings account is a tax-advantaged benefit plan. Funds contributed to this account are not subject to federal tax.
Flexible spending account -- Medical (Pre-tax): An FSA benefit plan helps provide reimbursement for qualifying medical expenses.
Retirement & Savings
401(k) (pre-tax): 401(k) is a retirement savings plan that the employer sponsors; employees may also contribute to the account.
Roth 401(k) (post-tax): This retirement savings account is funded by employer contributions and after-tax dollars up to the current contribution limit, which is based on the employee's age.
SIMPLE IRA (pre-tax): Also called electric-deferral and salary-reduction compensation, this plan allows employees to contribute a part of their pre-tax compensation.
Contributions made by the employer and the employee for these benefits will show in the payroll summary and on employees' pay stubs after payroll has run.