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NAPWC Supplemental Unemployment Benefits

If you’re an employee participant in the NAPWC Supplemental Unemployment Benefits Plan, these are answers to some of the more common questions we get asked!

I have a large account balance. Can I get it out all at once?

SUB distributions are only allowed based on an employee’s eligibility for full or partial unemployment.  Lump sum distributions are not allowed and the money will continue to accumulate for you until such time as underworked hours are reported for you.

I didn’t receive a check this month. Why not?

If the employer did not deem the employee as eligible for full or partial state unemployment benefit during the previous month, the employee would not be placed on the underworked hours report and a distribution check would not be generated for the employee in the current month.  If you feel that the employer did not report the correct underworked hours, please contact your employer to discuss the underworked hours that were reported for you.

When are supplemental unemployment benefit distribution checks sent out each month?

If the TPA receives the contribution check and contribution report by the 15th of the month and underworked hours report by the 20th of the month, then SUB distributions will be sent to the employer by the 25th of the month and distributed to the employees by the 30th/31st.  If the TPA receives the reports or contributions after the 20th of the month, the distribution will be sent to the employer by the 15th of the following month.

Why don’t I get all of the money that is contributed for me back in distributions?

Contributions are assessed a 9% administrative fee when they are received by the TPA.  Distributions are subject to a $3.50 distribution fee and Federal & State Income Tax withholding amounts based on your W-4 filing status.

How do I get my money from the Third Party Administrator (TPA)?

1.  Distributions are calculated based on the employee’s eligibility for full or partial state unemployment.  The employer will determine if an employee is eligible based on their time sheets during the month.  If an employee works less than 32 hours in a one week period in the previous month then he is eligible to receive Supplemental Unemployment benefits.  For example, if an employee worked the following hours in May, he would be eligible for a SUB benefit distribution in June:

Week 1 – 40 hours

Week 2 – 30 hours

Week 3 – 40 hours

Week 4 – 40 hours

2.  Once an employee is deemed eligible for SUB distribution, the employer will send in an Underworked Hours Report.  This report is the only way that a distribution can be sent to the employee.  The employer will calculate your underworked hours based on the straight time hours worked in the previous month and subtract them from 173 hours.  For example, if the employee worked 150 hours in May, the employer will calculate the underworked hours as follows:

173 – 150 straight time hours = 23 underworked hours

3.  Once the Third Party Administrator (TPA) receives the contribution, contribution report and underworked hours report, they will calculate the SUB distribution amount by multiplying the underworked hours by the employees reported highest rate of pay.  If the employer sent in an enrollment form with the highest rate of pay listed as $35 an hour, the TPA would calculate the distribution as follows:

23 underworked hours x $35 an hour = $805 eligible distribution

If the employee only has $500 in his account than he will only be eligible for the $500.  If the employee has $1000 in his account, than he will have $195 remaining in his account after the $805 eligible distribution.

4.  Once the eligible Supplemental Unemployement benefit is calculated, the eligible distribution amount is sent off to the payroll company, where they take out the appropriate taxes and send the distribution checks to the employer for distribution to the employee by the 30th/31st of the month.

How often are Supplemental Unemployment fringe benefit contributions remitted to the Third Party Administrator (TPA)?

Contributions to the NAPWC Supplemental Unemployment Benefit Trust should be remitted on a monthly basis by your employer to the TPA by the 15th of the month following the hours that you worked.  For example, if an employee worked 150 hours in the month of May, the contribution should be remitted to the TPA by June 15th.

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