A Health Savings Account (HSA) is a healthcare savings vehicle open to workers covered by a high-deductible health plan (HDHP). Both employers and employees can contribute on a pre-tax basis to HSAs, and withdrawals can be made tax- and penalty-free at any time for certain medical expenses.

Although written documentation for pre-tax health FSA contributions and dependent care (DCRA) benefits is required by section 125 of the Internal Revenue Code, the WrapDoc360 system currently only provides documents for Premium Conversion Plans.

Our PCP Plan Document states that only "Eligible Employees" can participate in the plan, and an Employee is defined as "any person providing services to the Employer or Participating Employer as a common law employee." Because S-Corp owners (i.e., 2% owners), sole proprietors, and partners in a partnership are not common law employees, none of these individuals can participate in the plan.

According to the U.S. Department of Labor, a short-term or long-term disability plan is deemed to be a non-ERISA payroll practice if the benefits are paid to current employees out of the employer's current assets. If the benefit is funded through a trust or insurance, it is ERISA-covered and should be included in the Wrap documents.

The Wrap templates are designed to comply with the federal laws governing employee benefit plans, especially the Employee Retirement Income Security Act of 1974, or ERISA.