Gusto introduces new financial health benefits to build savings & avoid debt
By Pavithra R
Gusto, an all-in-one people platform serving 100,000+ small businesses with payroll, benefits, and more, has announced the addition of new “no-cost and low-cost benefits” to its robust lineup of benefits built for small businesses.
Small businesses and their employees were running on thin margins before COVID-19 hit. The pandemic has led to significant losses in revenue and forced many businesses to reduce wages and health coverage. According to Economic institute policy’s research, more than 12M Americans have lost health insurance Yelp’s data shows that 60% of the businesses that have closed as a result of COVID and Gusto data shows that many SMBs had to reduce pay and benefits for their employees. To assist small business owners and their employees, Gusto has come up with new offerings that the company hopes will give better financial and health options through their employers.
With Gusto Wallet, the new financial health app for anyone paid with Gusto, employees can manage their paycheck with Cash Accounts that earn 8X the national savings rate, and access cash before payday when emergencies happen using Cashout. Gusto’s new modern financial health benefits are available at no cost. Gusto’s Cashout is designed to enable employees to hold on to more of their earned cash by providing free access to money on occasions they can’t afford to wait around for payday. Cashouts are based on the estimated accrued net wages employees have already earned and includes smart limits. The service can be used up to twice per month and caps the withdrawal amount, so employees always have money coming on payday.
Gusto Wallet enables small businesses to provide employees with a holistic, effective solution to tackle the cause and effect of debt and help relieve the financial stress that many American workers feel each and every day. Gusto Cash Accounts also makes it easier for employees to build savings directly from their paychecks automatically. Employees can start earning 0.34% APY (annual percentage yield) from the moment their paychecks hit their Gusto Cash Accounts. Employees can access their Gusto Cash Accounts either through the new Gusto Wallet mobile app or new Gusto debit card.
For Employers looking to offer health insurance, Gusto is also introducing new health reimbursement benefits through QSEHRA. A QSEHRA is a qualified small employer health reimbursement arrangement. Its contributions are payroll-tax-free for the business and income-tax-free for employees. The firm is integrating QSEHRA directly into payroll for faster, more streamlined administration. Health Reimbursement, made by QSEHRA, is a low-cost, flexible solution that enables employers to decide how much they can afford to contribute to employees’ monthly health insurance costs.
Founded in 2014, Gusto is a startup that’s reimagining HR, payroll, and benefits for modern companies. The firm believes in enabling affordable healthcare and financial security accessible to every employee in America. Its goal is to to help every business in the U.S. to take care of their team, regardless of size, stage, and budget. Businesses using Gusto’s people platform can provide employees with access to flexible spending accounts, college savings, and 401(k)s, so they can route pre-tax earnings into accounts that help secure long-term financial health.