User guide · Business owners, finance teams and benefits administrators comparing plan budgets and payment arrangements.
Calculate fees and your full plan cost
Under Pay-As-You-Use, your costs follow eligible reimbursements, with a 10% administration fee and applicable taxes. Build the full budget by checking your accepted pricing and funding arrangement, including any agreed payment charges; prepaid options have different terms.
Before you start
- Your accepted pricing terms, service agreement and relevant invoice.
- Employee classes, annual allowances and any permitted carry-forward.
- Your selected funding schedule and any bank or payment-provider charges.
At a glance
Illustrative Pay-As-You-Use calculation
$1,000 reimbursed
Eligible claims actually reimbursed under the plan.
$100 administration
10% of the eligible reimbursed amount.
$1,100 before tax
Add applicable taxes and any separate agreed charges.
Identify the accepted pricing model
For Pay-As-You-Use, the administration fee is 10% of eligible reimbursed amounts. The service agreement provides no upfront administration, setup, enrollment, maintenance or recurring subscription fee, and no minimum reimbursement-spend commitment under this model. Fees arise when eligible reimbursement spend is processed.
A Prepaid Plan uses the accepted applicable rate multiplied by annual funding. Its rate is quoted rather than universally fixed at 10%. Check when payment is due, the funding amount used in the calculation and any accepted pricing terms that specifically govern your arrangement.
- Confirm whether the quote is Pay-As-You-Use or Prepaid.
- Match the fee basis and payment schedule to the accepted invoice.
Calculate claims, fees and tax separately
For an illustrative $1,000 of eligible reimbursement under Pay-As-You-Use, administration is $1,000 × 10% = $100. Claims plus administration total $1,100 before applicable taxes and separate charges. This is an example, not a tax-inclusive quote or a customer result.
Apply taxes to the amounts and at the rates required for your actual arrangement. Federal and provincial taxes may apply to Wellbytes’ fees. Banking, transfer or currency-conversion charges may be imposed by third parties; these are separate from the administration percentage.
- Use the invoice rather than assuming one nationwide tax rate.
- Record reimbursement, administration and tax as distinct lines.
Separate funding deposits from fees
Pay-As-You-Use does not inherently require prefunding, but selecting a budgeted deposit or scheduled funding option can require advance payments. Those amounts support future obligations; they are not setup or subscription fees. Funding still has to satisfy the arrangement accepted by Wellbytes.
Prepaid administration fees are non-refundable once paid under the service agreement. Removing employees may reduce future funding requirements but does not refund prepaid fees; adding employees may require an incremental fee invoice and more funding. Confirm changes before adjusting your forecast.
- Keep deposited cash separate from the employee’s spending allowance.
- Check any reserve, payment schedule and treatment of amounts already paid.
Model the maximum plan commitment
Add the eligible claims payable under current allowances and any permitted carry-forward, then add administration under your pricing model, applicable taxes and separate charges. An employee’s medical reimbursement cap is not necessarily the business’s total cost cap.
For example, ten $1,000 allowances create up to $10,000 of current-year claims if fully used. Under Pay-As-You-Use that would add $1,000 administration, producing $11,000 before applicable taxes, separate charges and additional carry-forward obligations. Lower actual usage reduces claim-based spending under that model.
- Review allowances by employee class and effective date.
- Recalculate after employee additions, approved allowance changes or carry-forward adjustments.
Build a simple finance review sheet
Keep a short record that finance and HR can both use. Refresh it when your accepted terms or employee population change.
| Line | Information to record |
|---|---|
| Benefit limits | Employee classes, headcounts, allowances and permitted carry-forward. |
| Administration | Pricing model, fee basis, accepted rate and timing. |
| Taxes and other charges | Invoice tax treatment and applicable third-party charges. |
| Funding | Deposits already made, upcoming payments and outstanding obligations. |
Review the next term before making changes
A pricing-model change during an active term requires Wellbytes’ express approval under the agreement. Future pricing can change with notice, so confirm renewal terms rather than assuming today’s rate is permanent. Keep accepted amendments and invoices with your plan records.
Before you finish
- The pricing model and fee basis match accepted terms.
- Claims, administration, taxes and deposits are separate.
- The forecast includes carry-forward and relevant additional charges.
- Finance has checked employee changes and the next payment date.
Resolve a problem
| What you see | What to check |
|---|---|
| The invoice exceeds the employee allowance. | Check whether the allowance caps medical reimbursement while the invoice also contains administration, tax or other agreed amounts. |
| An advance payment looks like a setup fee. | Compare the invoice with your funding option; a budgeted deposit can be advance plan funding. |
| A departed employee appears in prepaid costs. | Review the non-refundable prepaid fee terms and distinguish prior fees from future funding requirements. |
