Taab, which stands for travel-as-a-benefit™, is a travel and vacation focused employee benefit that increases employee productivity and decreases employee burnout.
Similar to a 401k or HSA, employees contribute to their Taab account from each paycheck with their employer making a matching contribution. These funds are then available to the employee through a Taab issued debit card which will be approved for vacation related expenses (think flights, hotels, cars & cruises) and declined at non-travel related merchants (such as Best Buy, Apple, Target).
We have been piloting Taab since last year with incredible results and are now ready to share it with you. Interested employers can schedule a demo on Taab’s website today. Employees that want Taab as an employee benefit can enter to have Taab fund the first $500 to their Taab card if they are the first to submit their company on Taab’s website.
Here are some facts and stats to share with your HR / benefits manager:
Nearly half of HR leaders attribute up to ½ of their employee turnover to employee burnout.
Employee burnout affects 95% of all businesses.
4 out of 5 workers say they would prefer new benefits over a pay raise.
Nearly 3 in 5 people report benefits and perks being among their top considerations before accepting a job.
96% of employees say they are motivated by travel incentives, and 72% who earn the reward say they feel increased loyalty to the company.
Study published in the Journal of Applied Psychology reported that, the less employees detach psychologically during off-hours, the higher their emotional exhaustion is in 12-months’ time.
More than 70% of American workers who received paid time off did not take all of their allotted time last year, despite the obvious personal benefits.
The psychological and physical problems of burned-out employees, costs an estimated $125 - $190b a year in healthcare spending.
75% of the causes of employee turnover are preventable.
@drudalton perhaps a dumb question, how do you pronounce it?
@dzohrob Hey Dave, not a dumb question at all, it's pronounced "tab".
Love this! Would take travel over 401k any day of the week.
@_mrdidi Thanks for the support Didi!
Very nice concept; I am sure at high pressure work places, this can come in handy. Though I wonder that since TAAB collects contributions from both employee and employer, how can you ensure that you would not just take the money away?
@saurabhm6 if they just take the money away the news will spread fast and they won't have a business
This honestly should have been a thing since ever at sooooo many companies. Its weird that companies are JUST now learning that humans are...well human, and that treating them as such will make life better for everybody. And their pockets in the long run (reducing churn,burnout, ect;) Awesome project!
@cellus_christie Couldn't agree more Cellus! Thanks for the support!!!
This is a really neat idea. It's always nice to take some time off and clear you mind. My favorite place to do that is camping out in the woods.
What is everyone's ideal vacation?
@jakecrump Glad you dig it Jake. Having four young kids, my favorite place is anywhere with a pool to keep the kids occupied 😉
@jakecrump - Cabin in the woods over a tent any day for me!!
@jakecrump I just took my wife to Oregon for a week long getaway that was paid for 100% with TAAB contributions. It's suuuch a rad benefit!
@jakeleboeuf Looked like an amazing trip Jake, glad Taab was able to help make it happen!
Remarkable idea. All of my employees are now talking about this and begging me to implement it :) Amazing way to recruit and hold talent...exapecially with the current talent wars in big cities. Congrats!
@ryan_hungate Thanks Ryan! We'd love to see the amazing team Simplifeye enjoying it!
This is a neat idea!
Gold star for the idea, and another for the execution. This looks like a fantastic win for employers and employees. Well done 👏
@jeff_osborn Thanks for the feedback Jeff. We have a great (small) team behind Taab so hats off to the other Makers!
This is awesome! Being in the employee benefits space, I'm always looking for novel ways to make a difference with employee health and satisfaction. We will be releasing a new module at iRewardHealth for paid time off as a reward for health behaviors to tackle similar burn out and poor productivity issues. Travel as a benefit is such a cool take on rewarding employees.
Keep up the good work! Always open to talking if you think it could be worthwhile to find a way to collaborate,
@rick_mccartney I love the employee well-being approach. Lets chat. Shoot me an email, firstname.lastname@example.org.
Love this idea - I wanted to start a company around 2013 to create benefits and perks that were focused more on employee life satisfaction, enjoyment, mental health, etc. There was a ton of demand from HR departments but I couldn't figure out how to create all the products you'd need. This was a big one that was missing.
@tommyrva Hey Tommy, thanks for the support! I'd love to connect and hear more. Shoot me an email, email@example.com, if you're up for a chat later this week or next. Thanks again Tommy!
Great job!!😊 Will check it out
@ayush_chandra Thanks Ayush!!!
Awesome idea and execution! The web design makes me want to go on vacation already :D
Would be cool to add some Admin features from travelperk so we can just use one service for booking
@ali_siam Ali, thanks for the thoughts and feedback! You nailed the part of the roadmap 😉
Love the website design. So clean
@mzuvella Thanks Matt! That's all @kyleanthony 💯
Can't seem to find any pricing info. What does this cost the employer?
@bentg Hey Ben, pricing is a simple $5/employee/month.
Interesting idea!. one question, is the employer contribution part taxable to the employee?
@rsgopi Hey Gopi, great question. The employer contribution is a taxable benefit. Currently, it's considered a fringe benefit per IRS tax code. This is similar to student loan repayment benefits where the employer helps pay down student loan debt. Taab contributions are looked at in the same light.
Employers can decide if they want to help cover any of the tax incurred with a gross-up for example, if desired.
And obviously, we don't like the tax side any more than the next guy, but we want to play by the rules. Long term, our goal is to see favorable tax treatment, but admittedly, that is a long ways off 😉
@drudalton So how do you handle the tax reporting part?
@rsgopi We leave it up to the employer to decide exactly how they want to handle the tax side. Ultimately, the employer contribution should be imputed pay added to the employees check. As far as when that happens, we've seen it handled two ways.
The first is on a "pay-by-pay" basis. What I mean by that is that the employer match is added to the employees check when the match is made (at the time of each paycheck). For example, lets say you get paid every two weeks and you're putting $50/check into your Taab account and your employer is making a $50 match. In this case, the $50 employer match would be added to each check as imputed pay. In this case, payroll taxes are paid/withheld from both the employer and employee each pay check (pay-by-pay).
The other way the imputed pay has been done is "at time of use". What I mean here is that the employer match is not added to the employees check until the match is actually used/spent. In this case, payroll taxes are deferred. For example, lets say again you're putting $50/check into your Taab account and your employer is making the $50 match. After four checks, you would have put $200 in your Taab (post-tax) as well as your employers $200, for a total balance of $400. In this case, the employer match has not been added to your check yet, thus no taxes have been paid. Lets say you now book a $300 flight. $150 was your contribution which you had paid taxes on already, while the other $150 was your employer match, which you had not paid taxes on yet. In this case, your next paycheck would have $150 of imputed pay added to your check, and thus payroll taxes paid/withheld from both employer and employee. This way is a bit more manually taxing (no pun intended), but does defer taxes until the match is actually given/utilized.
Both routes have their pros and cons and again, ultimately we help the employer decide what they like best for their plan design.
With the "pay as you go" route, since the employee pays payroll taxes on the match with each paycheck, the match becomes the employees money as soon as the match is made.
With the "at time of use" route, the match is actually still the employers money until used, aka until the flight (in above example) is booked by the employee. At that point, the match becomes the employees money (they benefited from it via booking travel) and thus taxes are owed. The pro of this route is the deferral of taxes as well as cleaner "use it or lose it" guidelines for the employer to deploy, if desired.
Sorry for the long, likely confusing, explanation, but we are talking about taxes 😉 Ultimately, we let the employer decide how they're comfortable handling the taxes based on the plan design they see working best for their organization.
*Disclaimer* I am neither an accountant nor lawyer. This advice is general in nature and not to be taken as professional advice. 😉
Hmm downside is then you lose all the insurance benefits of travel credit cards as you can't book with your own credit card
@scotty_mcq this is the same thing that came into my head when I read about the debit card. Love the idea of Taab, but would hate the idea of losing points and benefits from the credit cards I have for a specific travel purpose.
@scotty_mcq @kunalslab You're both correct that some credit card "benefits" you gain on your personal card would be lost when booking with your Taab card.
However, we like to think the 1%-3% cash back or points earned are more than off-set by the 100% employer match. We see giving up 1%-3% to gain 100% a pretty good trade-off for the employee.
I'd love to hear your thoughts though.
I love this concept. What about if people need cash for their trip? Like they go to Asia and need the $2k in cash (not only available through a card)?