Trust DirectAdvisors for Seasonal Layoff Security
Would your employees like to receive double unemployment benefits and fully paid uninterrupted medical insurance during the seasonal layoff?
As I drove to the office this morning the temperature on my dashboard read -6 degrees. Most of our clients, at least the ones who work outside, are shut down for the next few months. The good news for our clients is that their employees will be receiving double unemployment benefits and their medical insurance coverage will continue uninterrupted — without them needing to make payments under COBRA.
Our clients contribute prevailing wage fringe benefit supplements for their employees to our qualified bona fide benefit trust – The DirectAdvisors Trust. The trust provides bona fide benefits such as medical, dental, life and disability insurance, health savings accounts, apprentice training, paid-time off, supplemental unemployment and retirement benefits.
For our clients with seasonal layoffs, we design the plan to budget savings for the layoff so that benefits will continue uninterrupted for the employees. It’s great for the employees and their families but it’s also a huge time savings in administration for the office staff since we eliminate most of the work related to benefit interruption (COBRA notices, collecting payments, etc.).
It gets better.
By including a supplemental unemployment benefit plan as one of the bona fide benefit offerings through our trust, employees will receive payments each week in addition to their state unemployment benefits. These payments typically match the amount they are receiving from the state and they do not reduce or affect the amount they receive from the state in any way.
Could it get any better? It sure can, because supplemental unemployment benefits paid from our trust are exempt from FICA taxes. That’s a 7.65% savings for both the employee and the employer!
If you would like to learn more about how our Davis Bacon and state prevailing wage bona fide benefit programs work please take a few minutes and watch our video www.directadvisors.com/prevailingwage or contact us with any questions.