No. Administrative costs come out of your pocket, not the fringe.
Costs such as payroll processing, W-2s and recordkeeping cannot be deducted from the health and welfare amount.
The short answer, then the detail.
How it works
- Insurance premiums can be credited when the carrier also pays the claims.
- A third party’s fees may be creditable depending on the facts.
What to watch
- Benefits owed under other law, such as workers’ compensation, unemployment compensation and Social Security, cannot be credited.
- Costs that are primarily the contractor’s business expenses, such as relocation, travel and awards, are not bona fide fringe benefits.
What CFH does
- Separates plan cost from administrative cost in the pricing.
- Flags fees that need a closer look with counsel.
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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