Christmas Club

HCCADC

Recently, I have started a Christmas Club program that employees fill out a form giving us authorization to deduct a specified amount from their pay. The full amount will be reimbursed the first pay in October. It is not required that employees enroll, and the employee needs to fill out a new authorization form every October if they decide to continue participating. If an employee's employment terminates, we reimburse the employee the entire amt that they have contributed. Also, if the employee falls on financial hardship, we will stop the christmas club contribution and pay it out to the employee as requested. Does anyone see a problem with this?

HRQ

Long ago, our credit union offered a Christmas Club benefit. It worked exactly as you described, and those who participated absolutely loved it, including ME. (Really, who has the ability to save for the holidays on their own?)

The benefit didn't "do" anything for us as an employer, but it did give employees an easy way to save for the holidays and reduce the whole "holiday preparation stress" thing. Because it was post-tax, the deductions could be stopped and restarted as needed. There was an enrollment deadline - by 11/1 each year, I believe.

NaeNae55

I can't help wondering where the funds are going until October. If they are remaining in the company's general funds, there might be a problem. If the company has a specific bank account the funds are going in, that is different.

I like the Christmas Club idea, but I would only want one if my money went into a specific bank account just for me. That way I would be the one earning interest on my savings, and not my employer.

Good luck!

Patty Mac

Our bank has been offering this for years to our employees. We have about 530 employees and I probably have 200 employees who have Christmas Club accounts. Each individual is set up with a savings account and earn interest on the money that is deposited. If they withdraw early, they forfeit the little bit of interest that is earned. Enrollment is every November.

Patty Mac

Rockie

Not sure why you are doing this as a company as banks offer this kind of thing and pay interest on the funds deposited. Seems like you are making unnecessary work for yourself unless there is not a bank in your area that provides this sevice. If we did something like this, we would have a constant flurry of employees coming in to get their money for all kinds of hardships, thereby defeating the original purpose and making a giant headache for ourselves.