Understand your category guide and the differences between taxable and non-taxable reimbursements
You may notice that some categories in your Categories Guide are labeled as taxable or non-taxable. This means that your employer will be treating reimbursements for such purchases accordingly.
Taxable
Reimbursements for taxable purchases are treated as income that must have taxes withheld. Since JOON does not withhold taxes from your reimbursement, your employer will withhold taxes in a future paycheck.
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 income. 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 were effectively reimbursed $112.50 toward $150 in eligible purchases!
Please speak with your HR admin for further details.
Non-taxable
Reimbursements for non-taxable purchases are treated as 100% reimbursable business expenses. Your reimbursements will not be taxed and no action is required on your part.
Note: If you make eligible purchases in both non-taxable and taxable categories, JOON will automatically prioritize reimbursements toward non-taxable categories up to your allowance in order to minimize your tax withholdings. It does not matter the order in which the purchases are made, marked as eligible, or reported.