A Supplemental Unemployment Benefit Plan (SUB Plan) uses fringe dollars to pay employees for involuntary short work periods. Employers direct excess fringe dollars to the SUB Plan. That money is held in a trust account and paid to employees when they involuntarily miss work.

The SUB Plan is part of an employee’s compensation package provided for working prevailing wage jobs. Other benefits can include health insurance and retirement plans. Unlike a 401(k) or other retirement plans, employees can receive payouts from this plan immediately, without waiting until retirement and without incurring IRS penalties.

The SUB Plan is sponsored by PWCA (Prevailing Wage Contractors Association) and administered by Service Contract Administrators, Inc. (SCA)

What are the benefits of providing a SUB Plan for your employees?

By directing fringe dollars into the SUB Plan, employers save on matching payroll taxes. Associated payroll expenses, including general liability insurance and worker's compensation premiums may also be reduced. By reducing these labor costs, you have the ability to win more jobs.

What are the perks of participating in a SUB Plan?

By having fringe dollars directed to a SUB Plan, employees know that they will have continued income during periods of short or long term unemployment. The funds employees receive from the SUB Plan can end up being more than they would have received if those same fringe dollars were paid on their paychecks.