Understanding the security deposit
The security deposit is a refundable deposit required when you activate your Soda plan. It acts as a holding deposit to ensure coverage for medical expenses and mitigate risk for the platform. Think of it like a deposit for an apartment - it's held as protection but fully refundable when you close your account.
Key points:
- Refundable: You get it back when you terminate your account
- Required: Cannot activate your plan without paying it
- One-time payment: Charged upfront
- Recalculated: May need to top up when adding new employees
How the deposit is calculated
The deposit is calculated using a simple formula based on your number of employees and their annual claim limits:
Formula:
Deposit = (# Primary Members) × (Annual Claim Limit per Member) ÷ 12
What this means:
- Primary Members: Your total number of employees covered
- Annual Claim Limit: The annual coverage limit you set per employee
- ÷ 12: Converts the annual limit to a monthly equivalent
Important: The calculated amount represents a 2-month deposit, providing financial security for the platform.
Deposit calculation examples
Example 1: Small Company
- 10 employees
- $1,000 annual limit per employee
- Float calculation: 10 × $1,000 ÷ 12 = $833.33
Example 2: Medium Company
- 50 employees
- $2,000 annual limit per employee
- Float calculation: 50 × $2,000 ÷ 12 = $8,333.33
Example 3: Custom Limits
- 25 employees
- $1,500 annual limit per employee
- Float calculation: 25 × $1,500 ÷ 12 = $3,125
When is the deposit charged?
Initial setup process:
- You sign up for Soda and configure your plan
- Float deposit is calculated automatically
- System blocks plan activation until deposit is paid
- You pay the float deposit via corporate credit card or with a bank transfer
- Once payment is confirmed, your plan is activated
- Float deposit is billed together with your first month's utilization
- Invoice is posted in the first week of the following month
How to pay the deposit
Payment method:
- Corporate credit card (standard method)
- Payment must be completed before plan activation
- System will not allow activation until payment is successful
What happens if payment fails?
- Plan activation is blocked until payment succeeds
- Contact support if you encounter payment issues
Adding new employees
When you add new employees to your plan, the deposit may need to be recalculated and topped up.
How it works:
- You add new employee(s) to your plan
- System automatically recalculates deposit based on new total: (# Primary Members) × (Annual Claim Limit per Member) ÷ 12
- If new deposit amount exceeds your current deposit, a top-up is required
- System may block member addition until top-up is paid (if required)
- You pay the top-up via corporate credit card or bank transfer
- Once confirmed, new employees are added successfully
Top-up calculation example:
Initial Setup:
- 20 employees, $1,000 annual limit each
- Initial deposit: 20 × $1,000 ÷ 12 = $1,666.67
Adding 5 New Employees:
- New total: 25 employees
- New security: 25 × $1,000 ÷ 12 = $2,083.33
- Top-up required: $2,083.33 - $1,666.67 = $416.66
When is a top-up required?
- Only when the recalculated deposit exceeds your current deposit
- If you're removing employees, no refund is processed (refund only on account termination)
- System will automatically calculate and notify you if a top-up is needed
- If you create a new plan with an annual limit higher than your starting plan, you may also be required to make a deposit top-up.
Is the deposit refundable?
Yes, the deposit is fully refundable.
Refund process:
- Refund is processed when you terminate your Soda account
- Full deposit amount is returned to you
- Refund timing depends on your account closure process
Important notes:
- Refund only occurs upon account termination
- No partial refunds for removing employees mid-term
Common deposit questions
Q: Why do I need to pay a deposit?
A: The deposit acts as a security deposit to ensure coverage for medical expenses and mitigate risk for the platform. It's similar to a security deposit for rental properties - required upfront but fully refundable.
Q: Can I activate my plan without paying the deposit?
A: No. The system blocks plan activation until the deposit is successfully charged. This is a hard requirement for all Soda plans.
Q: What happens if I don't pay the deposit?
A: Your plan cannot be activated until the deposit is paid. The system will prevent activation until payment is successful.
Q: Do I always need to pay a top-up when adding employees?
A: No. A top-up is only required if the recalculated amount (based on your new total number of employees) exceeds your current deposit. The system will automatically calculate and inform you if a top-up is needed.
Q: Can I pay the deposit in instalments?
A: No. The deposit must be paid in full before plan activation. It's a one-time upfront payment.
Q: What payment methods are accepted for deposit?
A: Learn more about supported payment methods here.
Q: When will I see the deposit on my invoice?
A: The deposit appears on your first invoice, billed together with your first month's medical utilization. The invoice is typically posted in the second week of the following month.
Q: What happens to the deposit if I remove employees?
A: The deposit is not reduced when you remove employees. Refunds are only processed upon full account termination, not for individual employee removals.
Q: Can I change my annual limits after paying deposit?
A: Annual limits are typically set for the policy year. Changes can be made during renewal. If you change limits mid-year, the deposit may need to be recalculated.
Security deposit best practices
Before activation:
- Ensure you have corporate credit card details ready
- Understand your annual limits per employee
- Have payment method approved by finance team
When adding employees:
- Be prepared for potential top-up payments
- Monitor your employee count changes
- Keep payment method updated in the system
- Contact support if you have questions about top-up amounts
Account management:
- Keep track of your security deposit amount
- Understand refund process for account closure
- Maintain accurate employee records for float calculations
Still have questions?
Please ask our live chat on the Soda Portal or contact Soda support for help with float deposit calculations, payments, or refunds.