The fringe still runs to that employee.
The obligation is stated per employee. Because it can be met with an equivalent cash payment, that is the route the regulations allow for someone who is not enrolled.
The short answer, then the detail.
How it works
- The fringe is owed to each covered employee, enrolled or not.
- An equivalent cash payment can discharge it.
- That payment is recorded separately from wages.
What to watch
- Treat a waiver as the start of a payroll question, not the end of one.
- Confirm the treatment for your contract with your contracts counsel before you set the enrollment rules.
What CFH does
- Models likely opt-out rates and the cash equivalents they create.
- Gives payroll per-employee numbers.
General information, not legal advice. Your wage determination and contract clauses govern, and contracts counsel decides how they apply to you. We bring counsel in.
Send us your renewal.
We’ll tell you whether it looks competitive, where we see opportunity, and the five questions we’d put to your carrier. No cost, and no obligation to move anything.
The renewal letter
Your current plan summary
Contribution split by tier
Enrolled counts by tier
Four documents, two more if your group is 50 or more. Nothing else; every extra one is a reason to postpone.
An independent employee benefits consulting firm. We look at the entire benefits program — cost, plan performance, risk and administration.
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