WageWorks (WAGE +0.00%) has entered into a "strategic alliance" with corporate resources provider Ceridian.
Under the new agreement, WageWorks will assume responsibility for a number of Ceridian-provided programs, including Health Reimbursement Arrangements, Health Savings Accounts, and Premium Only Plans. Ceridian, meanwhile, will offer WageWorks' health and commuter benefit accounts to Ceridian clients.
As part of the new agreement, Ceridian and WageWorks expect to transfer approximately 18,000 employers from Ceridian to WageWorks' Consumer-Directed Benefits. This change is expected to begin in the fourth quarter of 2013, and continue into 2014.
Joe Jackson, WageWorks' Chief Executive Officer, expressed confidence that the new alliance will "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." Ceridian has more than 100,000 clients in more than 50 countries.
