What happens when I approve an auto-reimbursement? Timing for admins
When you approve an employee's auto-reimbursement, payments can start right away instead of waiting for the monthly run. This article explains what's paid at approval, what's paid on the 25th, and how your timing affects when your employee gets their money.
What happens when you click Approve
The approval window tells you exactly what will be debited from your company bank account. Depending on the dates, approval pays:
- The first month of the plan: paid right away if you approve before the employee's plan start month ends. This means your employee doesn't wait for the 25th to be reimbursed for a premium they've already paid.
- Next month (a catch-up payment): paid right away if you approve after this month's 25th run has already happened, so your employee doesn't miss a month.
- Every month after that: paid by the run on the 25th.
Make sure your connected bank account has enough funds when you approve. Payments made at approval are pulled immediately, not on the 25th. If a payment can't be processed, the approval still goes through and you'll see a message asking you to contact support.
How the monthly run works
- On the 25th of each month, StretchDollar collects next month's reimbursements from your connected bank account. For example, the September 25 run pays October premiums.
- Employees usually receive the money around the 1st of the following month.
How your timing affects your employee
| Situation | Paid at approval | Employee's next payment |
|---|---|---|
| Plan already started (October plan, you approve October 10) | October | November, from the October 25 run (around November 1) |
| You approve after the 25th (October plan, you approve October 27) | October and November | December, from the November 25 run (around December 1) |
| Plan starts next month (November plan, you approve October 28) | November | December, from the November 25 run (around December 1) |
| You approve after the plan start month ended (August plan, you approve September 3) | Nothing for August | The employee submits a One-Time Reimbursement for August; the monthly run continues from there |
First-month payments usually reach the employee 3–5 business days after they're processed.
When nothing is paid at approval
- The plan start month has already passed. The employee submits a One-Time Reimbursement for missed months.
- That month was already reimbursed, for example through a One-Time Reimbursement. The employee isn't paid twice.
- The employee's plan starts before their ICHRA benefit begins. Months before the benefit starts aren't paid.
- The employee's allowance for that month is already used.
Tips
- Approve promptly. The sooner you approve, the sooner your employee is paid, and the fewer One-Time Reimbursements they'll need to submit.
- Approving before the employee's plan start month ends means their first month is paid automatically.
- Approve before the 25th when you can. The monthly run happens during the day on the 25th, so an approval on the 25th itself may land on either side of it.
For how to review and approve a submission, see How Auto-Reimbursement Approvals Work.