Palmetto Goodwill & GSA National – A Partnership in AbilityOne Compliance

Palmetto Goodwill Services of Charleston, South Carolina have provided cost effective contract services to the federal government since 1982 through the AbilityOne Program. Palmetto Goodwill is the largest employer of people with disabilities in South Carolina and continues to expand services through their Commercial services division. Palmetto Goodwill understands that compliance with the Service Contract Act (SCA) has always been complicated and in recent years 78% of contractors audited by DOL were found to be non-compliant. We pride our self on being 100% compliant with our SCA contracts and our partnership with GSA National allows us to deliver to our employees the best possible benefits available.

Starting in the first quarter of 2019 Palmetto Goodwill partnered with GSA National as their Third Party Administrator for the management of their SCA employee’s Health & Welfare (H&W) obligations. The relationship began with GSA National setting a knowledge base for critical staff through onsite SCA training before providing Fringe Benefit Accounting & Trust Services.

The SCA requires the H&W amount to be funded through wages or “bona fide” fringe benefits. GSA National showed us that a Trust is the most effective and efficient method used to meet the SCA H&W obligation. The trust was established as an irrevocable, tax-exempt trust, for the benefit of our employees, and is being used to fund a number of Plans. This helped us meet the strict definition of a “bona fide” plan as set forth in forth in 29CFR.

Starting in the first quarter of 2019 Palmetto Goodwill partnered with GSA National as their Third Party Administrator for the management of their SCA employee’s Health & Welfare (H&W) obligations. The relationship began with GSA National setting a knowledge base for critical staff through onsite SCA training before providing Fringe Benefit Accounting & Trust Services.

The SCA requires the H&W amount to be funded through wages or “bona fide” fringe benefits. GSA National showed us that a Trust is the most effective and efficient method used to meet the SCA H&W obligation. The trust was established as an irrevocable, tax-exempt trust, for the benefit of our employees, and is being used to fund a number of Plans. This helped us meet the strict definition of a “bona fide” plan as set forth in forth in 29CFR.

GSA National’s services for managing Palmetto’s health and welfare contributions:

  • Consolidated invoicing, premium allocation and recordkeeping
  • Tracking plan contributions at contract, location and participant level to include:
    • H&W contributions, payroll deductions, and benefit allocations
    • Payroll-related fringe costs
    • Tracking short-falls within individual employee accounts
    • Surplus benefit reporting to plan sponsor and third-parties
  • Invoices reconciled to client source files
  • Carrier billing reconciliations and payments
  • Quarterly financial statements and cost per hour reports
  • Direct assistance with regulatory filings
  • Assisting with DOL Audits
  • Employee Premium Reserve Account (PRA) Statements

Why is in-house compliance a risk to your service contract?

Industry experts estimate that at least 50% of contractors, including AbilityOne contractors, are currently out of compliance.

Not knowing your duties is not a defense against compliance deficiencies! With penalties and sanctions becoming more frequent and often substantial, now is the time to put a strategic partner to work for you and your bottom line.

Do You Need SCA Compliance Experts?

Are you prepared for a Department of Labor (DOL) audit?
With GSA National providing your compliance reporting, audit concerns are over. GSA functions as a main point of contact during a DOL audit providing thorough and accurate reporting. We strive to ensure your compliance model will result in no monetary or debarment penalties.

Do you provide statements detailing how Health & Welfare dollars are allocated?
GSA National provides statements to employees on either a monthly or quarterly basis, detailing each employee’s Health and Welfare dollar allocations. We brief employees on how their dollars are being spent, while maintaining report compliance.

Is your staff spending too many hours managing Health & Welfare Fringe Dollars?
On average, employers spend over 100 staff hours a month managing the Health and Welfare Fringe Dollars. With GSA National administering your H&W Fringe, you can free up your staff to work on more strategic initiatives, increasing productivity.

Are you paying your staff to administer the fringe Health and Welfare, and not offsetting that against the fringe dollars?
With GSA National’s Trust Accounting and Premium Reserve Solution, you will become more profitable in managing the Fringe.

Are you tired of experiencing cost overruns?
At GSA National we work with your current insurance broker/consultant to help determine cost-effective benefits packages that meet your obligation to provide meaningful benefits package. We are NOT an insurance broker.

If you answered YES to any of these questions, call us at 1-800-250-2741 ext. 172 or fill out the form below to discuss your compliance efforts and how we might be able to help you get on track!