Payroll practices from an employer's general assets are welfare benefit plans covered by the Employee Retirement Income Security Act (ERISA).

Question

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Under the Employee Retirement Income Security Act (ERISA), a welfare plan is any plan, program, or fund that the employer maintains to provide the following: medical, surgical, or hospital care; benefits for sickness, accident, disability, or death; unemployment benefits; vacation benefits; apprenticeship and training programs; day care centers; scholarship funds; prepaid legal services; or severance pay. However, payroll practices from the employer's general assets are not welfare benefit plans covered by ERISA.

Payroll Practices from an Employer's General Assets Are Welfare Benefit