Hour banking supports both contractors and employees, helping contractors avoid overpayment of health and specialty benefit premiums, It provides employees with a proven method for extending coverage during work stoppages.
How Hour Banking Works
Benefits are provided and tracked in hourly increments. Our administration team bundles the monthly costs of benefits such as medical, dental, vision and life insurance and converts them to an hourly equivalent cost. Employees can bank premium hours during peak work periods, then draw from excess hours to maintain coverage should there be a reduction in hours.
Our system makes accounting for hours worked and their corresponding fringes both seamless and transparent. Contractors only pay for actual hours worked, which means that spending time trying to get premiums refunded from insurance carriers is a thing of the past. If you experience rapid increases or decreases in employee numbers due to the nature of a contract, or downtime between contracts, hour banking is a practical solution.
- Employees accumulate premium credits for excess hours worked.
- The possibility of ineligibility under traditional programs is eliminated.
- Employees are protected during layoffs.
- Employees may bank up to seven months of benefits.
- Employers pay for actual hours worked, which prevents over payment of premium.
- Allows precise per hour cost in the bidding process.
SERVICES / SUB PLAN
- “Money Now” Prevailing Wage Benefit
- Provides employees immediate cash during slower periods or between jobs
- Seamless administration and employee reporting