The typical plan requires that the money is deducted from the employees check but before the employee has access to their money they must pay their provider, obtain a receipt, turn the receipt into the administrator and wait to be reimbursed. Reimbursement can take up 3 to 4 weeks. Meanwhile, the employee is paying double daycare. Where is the benefit in this?

We didn't believe there was a benefit because the typical employee simply could not afford to participate.

The Beneflex "IRS approved" direct-pay system:

• Employees have no weekly checks to write
• No Receipts to keep
• No Reimbursement Vouchers to fill out
  and best of all - there is no waiting to be paid pack

Beneflex pays daycare providers every Friday:
We prefer to pay via electronic funds transfer so that the provider is guaranteed that their payment is in their checking account Friday of each week. We also pay by check if requested. Checks are mailed on Friday of each week however, this method leaves the provider at the mercy of the postal service.
The $5,000 pre-tax break down:

Employee paid monthly
Employee paid semi-monthly
Employee paid bi-weekly
Employee paid weekly 		$ 416.66
$ 208.33
$ 192.30
$ 96.15

Often, the $5,000 annual maximum available through the benefit is not enough to completely cover the day care cost. In order to maintain the parent’s “no checks to write” benefit, Beneflex will handle any excess expense through a post-tax redirection at no additional cost to the employer.
Beneflex Inc. (800)925-4087
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