• Plan complies with all IRS and DOL regulations.
• All money is paid directly to the U.S. Bank NA, trustee.
• All dollars are invested in fiduciary approved money market accounts.
• The employer gets a complete write-off for fringe dollars - no payroll taxes.
• The only bona fide benefit payout left in control of the employer.
• Dollars are paid when the employer terminates or lays off employees.
• Employers receive monthly statements showing plan activity.
• The plan trustee provides all withholding and IRS filings.
• Easy one page reporting.

Supplemental Unemployment Benefit (SUB) Plan for Prevailing Wage Employers and Employees

We offer this SUB plan to companies who have employees that are subject to the Davis-Bacon Act, Service contract Act, and/or the State Prevailing Wage Law. When an employee is on a prevailing wage job, a deposit is made to the trust in accordance with the company wage policy and the applicable prevailing wage contract. This contribution is usually the balance of fringe payments after paying for eligible health care benefits. More information can be found at the Department of Labor web site.

Plan Fees

All plan fees are paid from the trust. The only cost to the employer is the annual PWCA membership of $200. Give your employees the benefit of cash and do it in a way that helps you and your employees save taxes.

Employees Benefit from the SUB Plan

• Employees get cash when they need it most - during period of unemployment.
• Prompt payouts made after employer notification.
• Money paid directly from the plan trustee, the U.S. Bank NA
• All required withholdings are made for employees.
• SUB payments are paid in addition to the state unemployment benefit.
• Benefit payments are not subject to Social Security or Medicare taxes.
• Monthly plan activity reports made to the employer.

Benefits are payable immediately upon a qualifying break in service as described in the summary plan description. However, when interest, forfeitures, and tax advantages are added, experience shows that employees are likely to receive benefit dollars greater than what they would have received had the fringe dollars been paid as wages.

Learn more about how the plan works.