What Is A Wrap Document?
The purpose of a Wrap is to provide a breakdown of benefits offered to employees, including disclosures and information. It is a requirement of ERISA due to insurance policy issued SPD (Summary Plan Documents) rarely meeting the ERISA Plan Document requirements.
Wrap Document Benefits
A benefit of this requirement, saving time and money. An employer with a Wrap in place will save hours and money at tax time. By allowing employers to file a single Form 5500 instead of a Form 5500 for each health and welfare benefit offered, filing business taxes becomes simplified.