Core Documents

  When employers offer educational benefits, having the correct   Section 127 EAP documents   is essential. These documents establish the legal framework that ensures tax‑free assistance under Section 127 of the Internal Revenue Code. With the program set to end student loan reimbursement after   December 31, 2025 , employers should take action now to align their documentation and policies. What Are Section 127 EAP Documents? Section 127 documents for an Educational Assistance Program (EAP) typically include: A  written plan document  outlining all program terms A  Summary Plan Description (SPD)  that simplifies the rules for employees Enrollment and claim forms  for participants An  administration guide  for HR and benefits teams A  resolution by leadership  formally adopting the EAP These components ensure compliance with IRS and Department of Labor standards, providing clarity for both administrators and participants. W...

  For working parents, the high cost of childcare can feel overwhelming. But many employers and employees overlook one powerful tool that can help reduce that burden—the Dependent Care Assistance Plan (DCAP), also known as a Dependent Care Flexible Spending Account (FSA). By taking advantage of this benefit under IRC Section 129, both employers and employees can   save on childcare costs and payroll taxes . What Is a Dependent Care FSA? A Dependent Care FSA allows employees to set aside pre-tax dollars—up to $5,000 per household per year—to pay for eligible childcare expenses. This includes daycare, preschool, before- and after-school programs, and even some summer camps for children under the age of 13. Because the contributions are made pre-tax, employees don’t pay federal income tax, Social Security, or Medicare tax on that portion of their salary. This can lead to significant annual savings—often ranging from $1,000 to $2,000, depending on the employee’s tax bracket. Payro...

  In today’s ever-evolving regulatory landscape, compliance with ERISA and the Affordable Care Act (ACA) is more crucial than ever. A key requirement under these laws—the Wrap Summary Plan Description (SPD)   plan document—has become a vital piece of employee benefit plan management. Understanding this, many employers are turning to   Wrap SPD design consulting   to navigate the complexities and safeguard against expensive non-compliance penalties. What Is a Wrap SPD? A Wrap SPD is a comprehensive document that consolidates all necessary health plan information mandated by ERISA and ACA. This includes coverage details, eligibility rules, cost structures, and employee rights. Importantly, while insurance carriers provide standard plan documents, they do  not  offer the SPD—that responsibility lies squarely on employers. Why Employers Need Wrap SPD Design Consulting High Stakes for Non‑Compliance Starting January 1, 2014, ACA introduced stiff penalties most n...

Employers offering group health insurance must comply with federal ERISA and Affordable Care Act (ACA) requirements—or face steep fines. A critical component of compliance is the  Wrap SPD plan document , which ensures plan participants receive clear, legally complete disclosures. This article explains what a Wrap SPD is, why it matters, and how it protects employers and employees alike. What Is a Wrap SPD Plan Document? A  Wrap SPD  (Summary Plan Description) is a supplemental document created by an employer to meet ERISA’s disclosure requirements. Because insurance carriers’ benefit booklets or Certificates of Coverage often omit core ERISA provisions, the employer drafts a wrap document that “wraps around” those materials, combining them into a legally compliant SPD and plan document . In legal terms, the Wrap SPD and the carrier’s certificate together constitute the official plan document and SPD that employers are required to deliver to participants . Why Employers N...