Great question. Here's how it works:
If they haven't received their payout yet: They can choose to (1) withdraw their contributions to date, or (2) leave them in the pool as a gift to their team. Their choice.
If they already received their payout: They've fulfilled their participation for that cycle. No further contributions required.
Important: Participation in IN TURN is entirely voluntary. Employees aren't contractually obligated to continue contributing after they receive their payout, though most do because they value the community safety net.
Tax treatment of pool payouts is currently under review with legal counsel. Because contributions are made via payroll deduction (post-tax), participants may not owe additional taxes on their lump-sum payout. Final tax guidance will be provided before program launch.
Employee contributions are made post-tax via payroll deduction, meaning participants have already paid income tax on the money they contribute to the pool.
Important: Consult your own tax advisor for personal tax questions. IN TURN will provide annual statements showing total contributions and payouts received once final tax treatment is determined.
InTurn administers the pooled funds in a segregated bank account. You (the employer) don't hold the funds, manage disbursements, or bear fiduciary responsibility.
Your role: Designate an admin (usually HR) who reviews and approves payout requests through InTurn. Once approved, InTurn processes the payout directly to the employee.
Transparency: All participants can view the pool balance, contribution totals, and rotation schedule. Individual payout requests remain private.
Short answer: Minimal to none.
InTurn is structured as a voluntary employee benefit, similar to optional payroll deductions for charitable giving. You're facilitating access to the program—you're not managing funds, making lending decisions, or providing financial services.
What you're NOT responsible for:
Legal review recommended: We encourage you to review the program structure with your legal counsel. Most employers find that InTurn carries less liability than traditional employer-funded assistance programs because the employer isn't funding or managing the benefit.
Yes, absolutely. Employer contributions are optional but welcome.
Two common approaches:
1. Employer matching: You match employee contributions dollar-for-dollar (or at any ratio you choose). This amplifies the pool size and shows strong support for the program.
2. Seed funding: You contribute an initial lump sum to kickstart the pool, giving it momentum in the early months.
Neither is required. The program works perfectly with 100% employee funding. But if you want to invest in your team's financial stability, matching contributions is a powerful way to do it.
This is normal. Participation fluctuates as employees join, leave the company, or opt in/out of the program.
New participants joining mid-cycle: They're added to the end of the rotation queue. They start contributing immediately and receive their payout when their turn comes up.
Participants leaving mid-cycle: They're removed from the rotation. If they haven't received their payout yet, they can withdraw their contributions or leave them in the pool (see "What happens if an employee quits mid-cycle?" above).
Impact on pool size: The monthly pool amount adjusts automatically based on active contributors. If 10 people are contributing $100/month, the pool is $1,000. If 2 people drop out, the pool becomes $800 for future payouts.
Flexibility is built in: InTurn handles participation changes administratively. Your admin doesn't need to manually adjust anything—InTurn recalculates pool size and rotation order as changes occur.
IN TURN is designed with transparency and structure to minimize abuse risk:
1. Randomized rotation schedule: Turns are randomly assigned at the beginning of each cycle. No one can jump the queue or request multiple payouts out of turn.
2. Admin approval: Your designated admin reviews and approves all payout requests. If something looks suspicious, they can deny it.
3. Regular reporting: Participants receive regular reports from InTurn showing pool status, contribution totals, and upcoming payout schedule. This visibility discourages gaming the system.
4. Equal contribution requirement: Everyone contributes the same fixed amount via payroll deduction. No one can contribute less and still receive full payouts.
Track record: In our pilot programs, abuse has been virtually nonexistent. When employees know the rotation is transparent and predetermined, peer accountability does the work.
The rotation keeps moving. Even if no one needs the payout urgently, the person whose turn it is receives their scheduled payout. This maintains the structure and prevents the pool from growing indefinitely.
Why stick to the schedule? Predictability is part of the value. Employees know exactly when their payout is coming (turns are randomly assigned at the start of each cycle), whether they need it for an emergency or just want to boost savings. Deviating from the schedule creates confusion and erodes trust in the system.
Yes, within reason. Most pilots use biweekly contributions of $25-$75, but you can adjust based on your team's income levels and preferences.
Contribution frequency: Biweekly is the standard frequency, aligned with typical payroll cycles. All contributions are processed via payroll deduction.
Important: Once the pilot starts, the contribution amount stays fixed for consistency. You can adjust it between cycles or for the next pilot cohort, but not mid-cycle.
Setup: 10-15 minutes (one-time)
Ongoing: 5-10 minutes biweekly
That's it. Payroll deductions are processed automatically. No ongoing management of funds. No compliance filings.
Contact us at inturncollective@gmail.com. We're happy to walk through your specific situation and answer any questions before you commit to a pilot.