SCA, Inc., SUB Plan, Supplemental Unemployment Benefit Plan

PWCA Supplemental Unemployment Benefit Plan

Seasonal layoffs and short work periods are a common occurrence for employees in the construction industry. The PWCA Supplemental Unemployment Benefit Plan, or SUB Plan, uses fringe benefit dollars to provide income replacement for employees who face these involuntary work stoppages.

Employers deposit fringe dollars on behalf of employees who work on prevailing wage or public works jobs. These fringe dollars are credited to the employees' accounts in the PWCA SUB Plan. Once the employee experiences an involuntary short work period or layoff, the PWCA SUB Plan can pay cash benefits, based on the employee’s credited balance, directly to the employee.

By directing fringe dollars into the SUB Plan, employers save on matching payroll taxes and possibly reduce their general liability and workers compensation costs. By reducing these labor costs, you have the ability to win more jobs.

The SUB Plan is part of an employee’s compensation package provided for working prevailing wage jobs. Other benefits can include health insurance and a retirement plan.

The PWCA SUB Plan helps you take those fringe dollars off of payroll, thereby avoiding the tax ”penalty” of paying fringe benefit dollars as cash.

This Is True Of Any Bona-Fide Fringe Benefit Plan… So Why The PWCA SUB Plan?

The best employers are those that understand the needs of their employees. Many Employers find that their employees need their fringe dollars to purchase medical benefits. Others find that their employees really want retirement benefits. However, nearly all employers would agree that their employees would prefer to receive cash benefits.

This is where the PWCA SUB Plan comes in.

Unlike a 401(k) or other retirement plan, employees can receive payouts from the PWCA SUB Plan immediately after experiencing an involuntary work stoppage, without waiting until retirement, without having to quit their job, and without incurring IRS penalties.

The PWCA SUB Plan is as close to paying in cash as you can get, while still realizing the payroll tax savings benefit of taking those dollars off of payroll.

And as a member of the PWCA SUB Plan, you’ll have access to our state-of-the-art employer website that allows you to manage your employees accounts, request distributions, upload documents and download Plan materials.

Can I add the PWCA SUB Plan to my existing package of Benefits?

Absolutely. In many ways the PWCA SUB Plan works best as one of many benefit plans provided to your employees. For example…

If after paying premiums and making retirement plan contributions, there are still fringe dollars leftover, the PWCA SUB Plan can be used as a “catch-all”, a place to deposit those unused fringe dollars.

If high fringe rates means that you are running into retirement plan contribution limits, the PWCA SUB Plan can be used as an additional place to deposit those fringe dollars

If you prefer to give your employees the choice of where to deposit their fringe dollars, the PWCA SUB Plan would be a popular option.

Already using the PWCA SUB Plan for your employees? Sign In here

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