The most recent Wednesday Webinar offered a deep dive on PayLater - a top-rated, very popular feature included with a Destinations product license for relocation. Here's the recording, deck and follow up Q&A set!
Q: Can PayLater be purchased by itself?
A: No, it is a built-in feature of the Destinations product.
Q: Is this a benefit-in-kind?
A: No, it is not a benefit-in-kind because the amount in question is (typically) under $10,000, associated to a relocation, is a one-off benefit and is repaid in under 12 instalments (standard configuration is 6 instalments). For these reasons it is not considered income or an income substitute. If access is set at over $10,000 then the specific rules need to be looked at per country.
Q: What happens if employees do not repay?
A: The same procedure as if the employer offered this benefit directly. Usually, the funds would be deducted from future payroll due to the employee and agreement to such action can be built in to the PayLater flow if required. If employees do not repay, then repayment responsibility would fall to the employer in the standard configuration. Clients may also choose to purchase a waiver to remove their responsibility to repay, in which case Benivo is solely responsible for recollection of funds.
Q: Do you provide guarantees to landlords?
A: No. Neither Benivo, nor Benivo's clients or partners have a contractual relationship to the accommodation supplier selected by the employee.
Q: What are the normal repayment terms?
A: Standard is within 6 months from the start of payroll.
Q: Is there interest charged?
A: No. Interest is not charged to the employee or the client. Access to feature for employees is included in the license fee for a Destinations license.
Interested to learn more?