Can my company pay the Health and Welfare in the check as cash in lieu of actual benefits?
Providing cash payments of fringe benefit dollars is the most expensive means of complying with the Health and Welfare requirements since your company must also pay all applicable payroll taxes and payroll related expenses (FICA, FUTA, SUI, Workers’ Compensation, etc.). Your company actually loses money by paying the Health and Welfare in the check. Moreover, as contracts become increasingly more price sensitive and competitive, a company which pays cash in lieu of benefits risks reducing profitability and increasing costs, which can result in lost contracts.
Related Questions
- In our company, employees have part of their health and welfare contributions deducted directly from their pay check. How can we collect this money from them once they leave employment?
- I currently receive $2.56 per hour for health and welfare benefits. How will the new single benefit rate affect me?
- How much can my company save by providing actual benefits instead of paying cash?
