Should I Get a Wrap Plan Document?
If your company offers multiple welfare plans (medical, dental, life insurance, etc.) to your employees, you may want to consider combining your welfare benefits under a wrap plan. Wrap plans are legal documents that combine all group insurance policies and contracts of a plan sponsor into a single plan. Adoption of a wrap plan means that your company is only required to file one annual Form 5500, rather than multiple forms for each welfare benefit. A significant advantage of the wrap plan is that it reduces administrative costs by reducing the number of Forms 5500 that must be filed, and consequently reduces the risk of a late or missed filing and the associated penalties. Wrap plans are an excellent tool to simplify administration and improve legal compliance of your plans. Sound appealing? Click here for a new EisnerAmper article outlining what you need to know regarding wrap plan documents.