System updates

We’re experiencing issues that may affect your Square services. We’ll continue to update our status page with more information.

Home>Benefits

Payroll Pre-Tax Spending Benefits

Employer FAQ

What will happen to my team’s pre-tax spending benefits for the remainder of 2020?

Your employees existing pre-tax spending benefits will remain active on all pay periods with a pay date in 2020. However, they will not appear for pay dates in 2021. For example, if you have a pay period from December 16 - 31, 2020, with a pay date of January 7, 2021, this will be reported on your 2021 Form W-2s and will not include pre-tax spending benefits.

What will happen to my pre-tax spending benefits in 2021?

Your team’s pre-tax spending benefits through Alice will not renew for 2021. You will not see any Alice deductions and/or reimbursements on pay periods with a pay date in 2021.

How can I access my Alice dashboard?

You and your employees can manage your Alice account directly from Alice. Starting January 1, 2021, you will no longer be able to access Alice from within your Square dashboard.

Can my employees access outstanding HSA funds in 2021? 

Employees that have an HSA balance in their Alice account may file a claim for eligible expenses and be reimbursed directly through their Alice dashboard anytime. All HSA reimbursements will come directly from Alice.  

Can my employees access outstanding FSA funds in 2021?  

Employees have until March 31, 2021 to submit claims to Alice for eligible expenses incurred in 2020, up to the amount of their remaining balance. Any expenses made in 2021 will not be reimbursed. All unused funds will be refunded to you, the employer, after the March 31, 2021 deadline, per IRS regulations.

Can I still offer pre-tax spending benefits to my team without Alice? 

If you would like to continue offering pre-tax spending benefits to your team, you will have to do so outside of Square. For benefits managed outside of Square Payroll, you can set up and adjust contribution amounts and limits for each employee benefit by logging into your online Square Dashboard and going to Payroll > Payroll Team > Benefits

Will my employees be able to access their Alice account in 2021?

Yes. Alice will email your employees a link to create login credentials so they can directly access their Alice dashboard outside of Square. Employees will always have access to their Alice information.

Is there anything I need to do? 

There is no action required from you or your employees.  

Do I need to notify my employees? 

Yes. You should notify your employees of this change.

Employee FAQ

What will happen to my pre-tax spending benefits for the remainder of 2020?

There will be no changes to your existing pre-tax spending benefits on all pay periods with a pay date in 2020.  For example, if you have a pay period from December 16 - 31, 2020, with a pay date of January 7, 2021, this will be reported on your 2021 Form W-2s and will not include pre-tax spending benefits.

What will happen to my pre-tax spending benefits in 2021?

Your existing pre-tax spending benefits through Alice will not appear on pay periods with a pay date in 2021. In addition, you will no longer be able to access the Alice dashboard through your Square Payroll account.  

Will I still have access to my outstanding HSA funds in 2021?

Employees that have an HSA balance in their Alice account may file a claim for eligible expenses and be reimbursed directly through their Alice dashboard anytime. Reimbursements will come directly from Alice and will not be included on your 2021 paystub.

Will I still have access to my outstanding FSA funds in 2021? 

Employees have 90 days (March 31, 2021) to submit receipts and be reimbursed for expenses that occurred in 2020, up to the amount of their remaining balance. Any expenses made in 2021 will not be reimbursed. Any unused funds at the end of the 90 days belong to the employer, as per IRS rules.

Contact Alice

For more information, please contact Alice Support at (347) 308-6036 or email at support@thisisalice.com.

Learn more about: Payroll

Can't find what you need?