Reimbursement Approval Timing: The 25th Cutoff (Admin Guide)

As an admin, when you approve affects when your employee is paid. Reimbursements are sent as standard bank transfers (ACH). They aren't instant or same-day: once a transfer starts, the money usually reaches the employee's bank account in 3–5 business days.

• One-Time Reimbursements: the transfer starts when you approve. It doesn't wait for the 25th. The money usually arrives in the employee's account 3–5 business days later.
• Auto-Reimbursement setups: when you approve, the transfer for the first month of the plan starts right away, as long as you approve before the employee's plan start month ends. After that, each month's transfer starts on the 25th, for next month's reimbursement. That 3–5 business day window is why the 25th matters: it gets the money to your employee by about the 1st, in time for their premium payment. If you approve after this month's 25th run, next month's transfer also starts right away, so your employee doesn't miss a month.
• Massachusetts and Rhode Island: for employees who live in Massachusetts or Rhode Island, auto-reimbursements go out on the 16th instead of the 25th, because insurers there need payment by the 23rd or 24th. Ask those employees to submit their enrollment application and proof of coverage by the 15th. Their auto-reimbursement then goes out on the 16th, for coverage that starts on the 1st of the next month.

Funds are pulled from your connected bank account when each transfer starts, so make sure it has enough funds. Approving promptly helps avoid the most common employee question we see: “why is my reimbursement still pending?”

For the steps to approve or reject a request, see How to Approve or Reject an Employee Reimbursement Request. For full auto-reimbursement timing, with examples, see What happens when I approve an auto-reimbursement? Timing for admins.