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
|
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 |
|
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 |
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.
