Supplemental Unemployment Benefit Plans
A Bona Fide Benefit Plan
Introduced by the Department of Labor in the early 1950s and approved by the IRS in 1956, company-financed SUB plans comply with federal Davis-Bacon and prevailing wage regulations in all 50 states.
Flexible by design, your company can customize your SUB plan to cover all or selected employees. In turn, enrolled employees will receive supplemental unemployment benefit payments when they meet your state's unemployment eligibility guidelines and experience a reduction in hours or loss of employment. In other words, as long as there is money in their individual accounts, employees receive full compensation when they need it most - even when hours worked are as little as 4 hours short of a 40-hour work week.*
If your company is engaged in prevailing wage work, a SUB plan is a tax-free option for employers who contribute fringe benefit dollars directly to the plan on behalf of employees.
If your company is engaged in non-prevailing wage work, you can offer a SUB plan as an employee benefit - and still reduce your overall cost by lowering your FICA tax responsibility.
Calculate your estimated savings now.
* To be eligible, employees must qualify under their state's unemployment guidelines.