Do you need a Wrap document?

According to the Employee Retirement Income Security Act (ERISA) passed in 1974, employers offering health and welfare benefits (health, dental and/or vision plans, AD&D/Term/Disability Insurance, wellness programs, etc) are required to provide plan participants with a Summary Plan Description (SPD) that clearly outlines details about the plan, its administration, and its benefits and claims process. (Click here to learn more about SPD documents).
 
ESC provides ERISA-compliant SPDs to enrollees of the plans we offer, but this is not always the case with other benefit providers. In many cases, plan administrators provide plan documents that are informative but do not meet the ERISA-compliant standards of an SPD. Wrap documents are essentially mega-SPDs that help streamline the compliance process for companies offering multiple benefit options to employees.

 

The ACA has provided government agencies that deal with ERISA issues additional resources to be more focused on compliance-related matters. The penalty for failing to provide a plan participant with an SPD on time is $110/day PER PARTICIPANT and failure to file a IRS Form 5500 (only applicable to companies with 100 or more ENROLLED in benefit plans, click here to learn more about IRS Form 5500 requirements) carries a $2,140/day penalty.
 
There are 3 key reasons an ESC client would want to utilize a Wrap document to fulfill their ERISA SPD obligations:
 
  1. Your staffing company offers other health and welfare benefit options in addition to those provided by ESC;
  2. Your staffing company offers benefits “pre-tax” under a 125 plan;
  3. Your staffing company is required to file IRS Form 5500 
 
In these cases a Wrap document will provide an easy, efficient way to remain in compliance with ERISA requirements and save your staffing company thousands in penalties.

 

Failure to comply with ERISA requirements is costly. Until now, finding affordable qualified ERISA legal advice has been impossible. That’s why ESC is excited to announce a new partnership with myHRcounsel that provides you with affordable access to reliable legal advice.

For as little as $37.50 per month, ESC clients can obtain an ERISA-compliant Wrap document solution and access to a compliance calendar, library of legal forms, and notices. For just $105 per month ESC clients can receive all of the above AND unlimited phone and email access to myHRcounsel’s ERISA, ACA compliance, and HR issue attorneys in all 50 states. ($165 per month if creation of IRS Form 5500 is included). 
 
Click here now to request more information on this game-changing service partnership.
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