Wheels, a small bike sales and repair shop, has ten employees, 5 full time and 5 part time. Walt Morgan, the owner, can’t afford to provide many employee benefits, but he does provide all employees three full-pay sick days a year.
Wheels, a small bike sales and repair shop, has ten employees, 5 full time and 5 part time. Walt Morgan, the owner, can’t afford to provide many employee benefits, but he does provide all employees three full-pay sick days a year. He funds the sick pay out of his general assets. He also provides his full time employees with basic health insurance that has a high deductible to keep costs down. Walt pays an annual premium for this insurance out of his general assets. Under ERISA:
A – Walt must provide employees with a Summary Plan Description
B – Walt qualifies for the small welfare plan exemption
C – Walt must file an annual report to the IRS
D – Walt must do either a or b
E – Walt must do both a and b