WageWorks, Inc. (NYSE: WAGE), a leading provider of Consumer-Directed Benefits (CDBs), such as pretax accounts for health, commuter and other employee benefits, today announced that it has entered into a strategic alliance with Ceridian, a leader in human capital management with more than 100,000 clients in over 50 countries.
Under this alliance, WageWorks will assume responsibility for the administration of all Flexible Spending Accounts (FSAs), Health Reimbursement Arrangements (HRAs), Health Savings Accounts (HSAs), Commuter Benefit Accounts, and Premium Only Plans currently provided by Ceridian. In addition, as part of this alliance, Ceridian will soon offer through its sales organization WageWorks’ health, commuter and other pretax employee benefit accounts to their employer clients. By partnering with WageWorks, Ceridian ensures that its clients and their employees have access to the expertise, technology and enhanced services in Consumer-Directed Benefits WageWorks offers, while continuing their focus on providing leadership in human capital management.
“We are very excited to be working with a company of Ceridian’s outstanding reputation and market reach,” said Joe Jackson, CEO, WageWorks, Inc. “This alliance will allow us to bring WageWorks’ tax-saving Consumer-Directed Benefits to the large number of employers and employees that are already working with Ceridian and taking advantage of their industry-leading offerings in human capital management."
“This partnership allows two leaders in their space to deliver a combined best-in-class solution, and enables Ceridian to deliver even greater value to our customers in the area of Consumer-Directed Benefits,” says David Ossip, CEO, Ceridian HCM. “WageWorks’ technology platform combined with their strong focus on customer service, education and engagement is an excellent complement to our transformative human capital management products and services.”
To implement the partnership with current clients, WageWorks and Ceridian expect to transition approximately 18,000 employers from Ceridian to WageWorks’ Consumer-Directed Benefits. Transitions are expected to begin during the fourth quarter of 2013 and continue into 2014, with both companies working closely together to ensure a smooth process for all existing clients.