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This entire site is for educational or informational purposes only. You are not to use the forms, concepts, strategies, or knowledge without assistance from a professional. The author, the corporation, the ISP, Bob Parrish CPA, Bob Parrish CPA, P.C. or other parties related to those or this site do not guarantee or warrantee in any manner the suitability, usefulness, accuracy, timeliness, or results of any portions of this site, nor the links contained in this site which link to other areas. At times, information is taken from other sources and is believed to be accurate, but no verification or confirmation is performed. Furthermore, if any federal or state law invalidates a portion of this disclaimer, the other portions still apply. In addition, any allegations or actions are restricted to arbitration only and must be arbitrated by the Better Business Bureau in Sarasota Florida. Reading of these pages constitutes complete acceptance and agreement with all disclaimer provisions on all pages of this site. .......
Saturday, June 05, 2004 09:39 AM
Welfare Benefit Plans
Before an employer adopts any welfare plan, it is important to consider whether the plan will be covered by ERISA. Welfare plans are defined as any plan, fund or program maintained by an employer or by an employee organization, or by both, to the extent that such plan, fund, or program is for the purpose of providing for its participants or their beneficiaries --
• medical, surgical, or hospital care or benefits, or benefits in the event of sickness, accident, disability, death or unemployment, or vacation benefits, apprenticeship or other training programs, or day care centers, scholarship funds, or prepaid legal services, or
• any benefit described in §302(c) of the Labor Management Relations Act, 1947 (other than pensions on retirement or death, and insurance to provide such pensions). ERISA §3(1).
Examples of plans that are exempt from ERISA include plans that provide for overtime pay, shift premiums, holiday premiums, weekend premiums, payment while absent due to medical reasons, vacation and holiday pay, payment while absent on active military or jury duty, payment while engaged in training, on sabbatical leave, or while pursuing further education. 29 CFR 2510.3-1(b) also exempts certain benefits paid from general assets of the employer as a payroll practice.
"Welfare benefit fund" defined.
A "welfare benefit fund" is any "fund":
1 which is a part of a plan of an employer, 23 and
2 through which the employer provides "welfare benefits" to employees or their beneficiaries. 24
23 Code Sec. 419(e)(1)(A).
24 Code Sec. 419(e)(1)(B).
illustration: Corporation X sets up a trust to administer its self-insured medical reimbursement plan for the benefit of X's employees. X's arrangement is a welfare benefit fund.
A welfare benefit is any benefit other than deferred compensation or property transferred for services rendered. 25
25 Code Sec. 419(e)(2).
Severance pay and death benefits provided under a multiple employer plan were welfare benefits, not deferred compensation, since benefits were payable if an uncertain event would occur. The benefits weren't deferred compensation merely because an employer could voluntarily terminate its participation in the multiple employer plan, thereby controlling the timing of income to its employees. 25.1
25.1 Booth, Robert, (1997) 108 TC 524, 21 EBC 1494.
A welfare benefit fund includes a voluntary employee beneficiary association ("VEBA") under Code Sec. 501(c)(9). 26
26 Code Sec. 419(e)(3)(A).
Law (commentary and citation)
Regs (commentary and citation)
Cases (commentary and citation)
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§274(d)
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This is about Activity Based Taxplanning - maximizing deductions, minimizing cash outlay and maximizing the amount of cash retained and the net worth.
Tax is a subject that many view in order to cut costs. Taxes are a cost just as any other cost. It happens this cost is somewhat intangible and is defined by legislation without a tangible item to view and control. The money is spent and the control of the expenditure is more appropriately administered by someone trained in the law.
This is about Activity Based Costing - methods to cut costs, management accounting, management information systems, decision support systems - in general about being a manager.
From Banking Records
From Customer Records
From Signed Documents
From Your Other Business, or Financial Records
From Corporation or Organization Records (meetings, etc.)
What to do:
Assistance - What to do
Forms - Checklists - Etc.
Financial Statement Presentation
Notes to Financial Statements
How to Make Entries
What Kind of Records to Keep
Bookkeeping Methods - Cash, Accrual and Other
How the Business Entity Affects the Recording
Sole Proprietor
Corporation - C & S
Partnerships - General, Limited, Limited Liability Company, Registered Limited Liability Partnership or Company
Trusts
Tax Exempt
Alerts & Dangers - Risks
Asset Protection
Your Defense
