1. Help Center
  2. Receiving reimbursements for benefits

What purchases are "taxable" and what does that mean?

Understanding your category guide and taxable purchases

You may notice that some categories in your category guide are labeled as taxable.

This means that your employer will be treating reimbursements for such purchases as taxable compensation. Since JOON does not withhold taxes from your reimbursement, your employer with withhold taxes in a future paycheck.

Please speak with your HR team for details.

Example: If your company withholds taxes for JOON benefits quarterly and you received $50 in reimbursements each month of the quarter, then your company has provided you with $150 of taxable compensation. If your combined Federal and State tax rate is 25%, you can expect to have $37.50 deducted from a paycheck.

That means that you effectively received $112.50 toward $150 in approved purchases!