Fringe Benefits Solutions

Make the switch today to reduce your payroll costs and increase cashflow for your business. Provide your employees with competitve benefits and give them the flexiblity to withraw cash as needed

Reduce tax liability

Be more competitive

Give your employees flexibility with cash access 

Win more bids

 

Fringe Benefits Reinvented

Using an eBacon Fringe Benefit trust allows you to provide employees with access to benefits and cash.

Easily Withdraw Cash

Cash can be distributed by direct deposit or through a pay card each week!
 
 

Available Savings Funds

Employees can choose traditional benefits like health, FSA and 401k but also have a cash option for their fringe benefit.

Benefits Automatically Allocated

Our system helps you determine and claim the correct amount of fringe credits,eliminate fringe overpayment and avoid common errors.

Substantial Savings for Employers

Trusts are a great way to pay fringe benefits because they can provide employer-side savings on taxes, workers’ compensation and general liability. This makes them the clear choice for handling fringe payments.

Residential Carpenter
  • 50% Certified
  • $20.65/Hour Fringe Benefit
Example #1
Fringe Paid in Cash (Monthly)
Fringe Benefit Paid to employees per month $1,789.67
Employer Payroll Taxes $136.91
Workers Comp Rate $143.17
General Liability Rate $17.90
Total Amount Paid $2,087.65
Gross Employer Monthly Savings $0.00
Gross Employer Annual Savings $0.00
Example #2
eBacon Fringe Saver Trust* (Monthly)
Fringe Benefit Paid to employees per month $1,789.67
Employer Payroll Taxes $68.45
Workers Comp Rate $71.59
General Liability Rate $8.95
Total Amount Paid $1,938.66
Gross Employer Monthly Savings $148.99
Gross Employer Annual Savings $1,787.88
Example #3
Supplemental Unemployment Trust* (Monthly)
Fringe Benefit Paid to employees per month $1,789.67
Employer Payroll Taxes $0.00
Workers Comp Rate $0.00
General Liability Rate $0.00
Total Amount Paid $1,789.67
Gross Employer Monthly Savings $297.98
Gross Employer Annual Savings $3,575.76

Illustration of Employer Savings using eBacon Fringe Saver Trust

Residential Carpenter: Example #1 Example #2 Example #3
  • 50% Certified
  • $20.65/Hour Fringe Benefit
Fringe Paid in Cash (Monthly) Supplemental Unemployment Trust* (Monthly) eBacon Fringe Saver Trust* (Monthly)
Fringe Benefit Paid to employees per month $1,789.67 $1,789.67 $1,789.67
Employer Payroll Taxes $136.91 $68.45 $0.00
Workers Comp Rate $143.17 $71.59 $0.00
General Liability Rate $17.90 $8.95 $0.00
Total Amount Paid $2,087.65 $1,938.66 $1,789.67
Gross Employer Monthly Savings $0.00 $148.99 $297.98
Gross Employer Annual Savings $0.00 $1,787.88 $3,575.76
*Assumes 100% fringe benefit is added to the trust

You’ll save money and your employees will be happy.

With the Fringe Trust employees can:

  • Get their fringe direct deposited or on a pay card each week.
  • Take charge of their future by leaving fringe in a 401(k), HSA or FSA.
  • Have little impact on their net pay when choosing the immediate cash option if you currently pay fringe in all cash.

 

How an eBacon fringe trust is different 

We’re a third-party administrator and a software company, so we can do things that other companies can’t. We’ve automated much of the administrative work that it takes to distribute funds, and we have the built-in ability to deliver them. This makes it easy for us to give employees the option to leave their fringe payments in the trust or take them out each week. 

How it works 

Companies put their fringe benefit payments into our bona fide fringe trust, which is a traditional 401(k) plan. This means that companies using our trust get to use pre-tax dollars to handle their fringe obligations. The savings can be huge, and it’s completely compliant with all applicable laws, including: 

  • Employee Retirement Income Security Act (ERISA) 
  • Internal Revenue Service rules and regulations outlined in Section 401(k) 
  • Davis-Bacon and Related Act regulations 

Employees can then choose traditional benefits like health, FSA or a retirement plan or they can have the money distributed via direct deposit or to a pay card each week. IF they withdraw funds, all required taxes are paid at that time and it’s reported to the IRS on a 1099-R, with all required information. 

Fringe benefit management

Some companies try to simplify things by paying fringe benefits in cash. While this may make the paperwork easier, it can cost tens of thousands of dollars in overpayment. Fortunately, there is an easier, and more cost-effective way of dealing with fringe benefit requirements.

Our Fringe Saver combines fringe trust management with sophisticated certified payroll reporting technology to help your company save in taxes, workers’ compensation and general liability. Our system helps you determine and claim the correct amount of fringe credits, eliminate fringe overpayment and avoid common errors.

Effortless Compliance

The system automatically calculates the correct fringe benefits based on applicable local and federal regulations. You can have piece of mind that employees are being paid correctly.

  • Easily and automatically stay compliant with applicable local and federal fringe laws.
  • Create reports showing fringe benefits compliance
  • Reports are ready whenever an audit comes up

FAQ

Will my employees still be able to withdraw fringes in cash?

Yes, if an employee elects not to allocate their fringes into different funds, they will receive the fringe portion as a separate check (minus required taxes). By implementing our fringe management service, your employees will have greater flexibility to save for the future or access cash as needed.

What types of savings funds will be available to my employees?
  • FSA or HSA (depending on medical plan)
  • Dependent Care (DCA)
  • Parking & Mass-Transit Commute
  • Deduction Reserve Account
  • College or First-Time Home purchase
  • 401(k) Retirement Investment
How will my business benefit from implementing the trust?

By properly allocating fringes, your business will benefit from having a reduced tax liability and reduce workers’ compensation costs.

Our system also automatically assigns the correct and exact fringes for the jobs worked, so you can have peace of mind that employees are paid correctly. As a business, you can expect significant savings on payroll taxes and workers’ compensation premiums.

How will my employees be able to see their benefits allocations?

Our fringe benefits management system is integrated directly into eBacon, so in addition to using eBacon’s self-service system for time tracking, PTO request, employees are able to manage their fringe benefit allocations.

They will be able to request a cash withdraw or reimburse for tax free spending on medical, dental, dependent care, mass-transit, parking, college or first-time home buying.

Want to reduce your fringe payments by an average of 35%?

Explore the Fringe Saver today