Wrap Document & POP Plan
Make sure your business stays ERISA compliant with up to date Wrap documents and a POP plan. With the tryHRIS system, fill in the questions step by step and your business documents are created effortlessly.
Premium Only Plan Documents (POP) can usually be created in less than 30 minutes. Wrap Documents can usually be completed in less than an hour.
What is a wrap Document?
The purpose of a Wrap is to provide a breakdown of benefits offered to employees, including disclosures and information. It is a requirement of ERISA due to insurance policy issued SPD (Summary Plan Documents) rarely meeting the ERISA Plan Document requirements.
Wrap Document Benefits
A benefit of this requirement, saving time and money. An employer with a Wrap in place will save hours and money at tax time. By allowing employers to file a single Form 5500 instead of a Form 5500 for each health and welfare benefit offered, filing business taxes becomes simplified.
DOL and ERISA Penalties
Employers without a Wrap document may face:
- A penalty of $152 a day for failing to provide documents requested by the Department of Labor.
- A penalty of $110 a day for failing to produce the document within 30 days of an employee’s written request.
- filing an individual form 5500 for each benefit offered to employees and as such applicable late tax penalties as accessed.
The tryHRIS system guides you through your Wrap doc creation so you can have yours done within an hour. We offer these individually priced or are available as one of many features included in our membership.
What is a POP Plan?
A POP Plan is also known as a Section 125 (or Cafeteria 125 plan). It allows employees to pay their premiums for their health insurance tax free. This saves employees on Federal, State and Social Security taxes while lowering employers taxes towards Social Security match. In order to allow your employees to pretax certain benefits on their paychecks, you need to have a compliant section 125 premium only plan document (POP).
Section 125 Benefits
Employer’s benefit from the POP Plan by reducing payroll taxes. Employer’s save 7.65% on every dollar of employee contribution to the POP on average. This tax savings is often equivalent to the entire cost of the plan administration.
How to Set up a Section 125 Plan
tryHRIS’s system makes setting up your Section 125 plan easy. On our pricing page, select if you would like to purchase the POP document individually or choose the membership option, which includes both POP and Wrap documents. Login and begin by selecting create document and answer simple questions such as your plan’s information and start date. The step by step process walks you through the entire creation within 30 minutes.