Of all the Prevailing Wage products available, the most advantageous cash plan for employers and employees alike is a Supplemental Unemployment Benefit Plan. The plan saves money for the employer and helps relieve lost wages for employees during slow work periods. The NAPWC’s Supplemental Unemployment Benefit Plan is accepted by the IRS and is approved by the Department of Labor as a bona-fide prevailing wage fringe benefit. When included in a well balanced Prevailing Wage product portfolio such as Health, Life, and Pension, this product offers an attractive benefit when employees need it most.
By default, many prevailing wage fringe dollars are paid out through payroll as it is not feasible to put all available fringe monies into medical and pension. Many times, merit shop contractors are unaware of their choices in allocating fringe monies. The Supplemental Unemployment Benefits Plan does make it possible to put all prevailing wage fringe dollars into a bona-fide benefit instead of being paid out through payroll creating a higher tax burden on the employer. However, the SUB Plan may best be used in a balanced portfolio allocating fringe money to medical, pension, and other bona-fide benefits offered through the NAPWC.