2012-09-26 CC Packet - Laserfiche WebLink

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with an HSA. Plan Sponsor acknowledges that Agent may, from time to time, change the Custodian and may subcontract other aspects of its performance. Agent may not, however, require any participant to close an HSA with the then current Custodian. Agent shall have no responsibility with respect to contributions paid by Plan Sponsor, participants or other contributor or transferor to the HSAs, other than to allocate the contributions in accordance with clear instructions received from Plan Sponsor, participants, or other contributor or transferor. Agent shall have no obligation to take affirmative actions to collect monies paid as contributions, such as, by way of example, to pursue a check or electronic payment transfer from Plan Sponsor or a participant or other contributor or transferor that does not clear. If this Agreement is terminated mid plan year, Plan Sponsor shall continue to be responsible for payment of administration fees set forth in the Group Plan Application for the entire plan year. Administration fees shall be calculated on a minimum or per participant basis, whichever is greater. For purposes of calculating fees on a per participant basis, the number of participant shall be determined as of the invoice date and shall include any employees terminated mid year. In addition to the administration fees set forth in the Group Plan Application, Agent shall also be entitled to payment from the Plan Sponsor of all expenses and costs reasonably incurred by it in the administration of the HSAs, including, but not limited to, reimbursement for the cost of debit card transactions, including any fraudulent charges, unless such expenses and costs are paid directly by participants. DirectPay Fraudulent claims by Plan participants (regardless of whether by use of the debit card, web submitted, TASC submitted, medical provider or manually submitted) and amounts distributed to Plan participants that exceed the Plan participants' account balances are the Plan Sponsor's responsibility. The Administering Agent also reserves the right to request a deposit or payment when the fund account goes into a negative account balance. Fees are calculated at the minimum administration fee or health enrolled fee which ever is greater. Fees are also calculated on the number of health enrolled in the Plan, including terminated employees at the time of invoice. The Plan Sponsor is responsible for administration fees for the entire Plan year, including the run out period. Standard run out period is 90 days following the end of the Plan Year. COBRAToday The Administering Agent will forward onto the Plan Sponsor the COBRA continuee premium amounts. COBRAToday charges the COBRA continuee an additional two percent above the premium amount for handling the payments. This two percent is maintained by COBRAToday. If the COBRA continuee's premium check is rejected due to non - sufficient funds, the Plan Sponsor will be responsible for reimbursing the Administering Agent any distributed amounts for the continuee while the Administering Agent attempts to collect dollars from the COBRA continuee. FMLAMatters The Plan Sponsor agrees, as is necessary for the Administering Agent to complete its responsibilities herein, to provide the Administering Agent with the following information. The Plan Sponsor understands they are responsible for notifying the Administering Agent when certain qualifying events occur, and that the Administering Agent cannot carry out its responsibilities without notification as defined, with relations to the Plan Sponsor's employees. 1) Absences, or proposed absences, in excess of 3 days from regularly scheduled work for the circumstance(s) of a birth, adoption or placement in foster care of a child, the care of a seriously ill child, spouse or parent, or the employee's own illness, 2) Eligibility of the proposed employee; employment by the Plan Sponsor in excess of 12 months and cumulative work hours of 1,250 in the preceding 12 months, 3) Notification to the Administering Agent if an employee who has been out on leave has returned to work. The Plan Sponsor must provide to the Administering Agent and keep the Administering Agent currently informed, of all pertinent information relating to the Plan Sponsor at the inception of the contract and as may be later modified by the Plan Sponsor, including but not limited to: 1) Advise the Administering Agent of any changes in employee population per location that may affect FMLA administration (increase or decrease with relation to the minimum of 50 employees per covered location), 2) Advise the Administering Agent of any newly acquired locations, in order to ensure compliance with FMLA administration, 3) Advise the Administering Agent of any divested location (closing or sale to separate organization) that affects FMLA administration, 4) Provide Administering Agent with current information regarding all benefit programs; providers rates and other pertinent information. PayPath 1. TASC'S RESPONSIBILITIES: a. Tax filings. TASC will serve as a limited agent for Administrator only for purposes of any required deposits and filings with the Internal Revenue Service and /or any state reporting agency. TASC is not otherwise an agent of Administrator, nor is TASC in partnership or otherwise affiliated with Administrator's business. Any requests to deviate from the current withholding tax tables must be made in writing and will be the responsibility of the Administrator. TASC will not be responsible for tax deposits or tax reporting for payrolls that were not processed by TASC. b. Penalties and other assessments. Notwithstanding anything to the contrary in Section I of this Agreement, if TASC makes an error or omission that results in an assessment by a taxing authority against Administrator that includes penalties and /or Interest, then TASC's sole liability will be to pay the penalties and /or interest. It remains Administrator's responsibility to pay any uncollected tax due. TASC will not be responsible for penalties, interest or other damages or liabilities otherwise assessed against Administrator, including due to: i) tax deposits or other amounts that are returned for insufficient funds ( "NSF ") from Administrator account, a closed Administrator account, or any other reason beyond TASC's reasonable control; or ii) Administrator's submission of untimely, inaccurate or illegible information to TASC. Administrator agrees to hold TASC harmless from any and all such penalties and interest (other than as described in the first sentence of this subsection 1.d.), and other damages and liabilities, which will be Administrator's sole responsibility. 2. ADMINISTRATOR'S RESPONSIBILITIES: Administrator agrees to accept the following obligations and responsibilities with respect to the Plan and PayPath services: a. Administrator will submit to TASC Administrator's payroll data no less than three (3) business days in advance of the date payroll is to be effective. Once payroll data is submitted, Administrator cannot change the data. Administrator will make sufficient funds for direct deposit available to TASC in escrow no less than two (2) business days in advance of the date payroll is to be effective. Failure to timely submit payroll data and /or funds may result in delay of payment to employees, additional charges, or in Administrator default. b. Administrator will notify TASC in writing within fifteen (15) business days of any voided checks, overpayments, underpayments, or other payroll errors. If timely notice is not provided to TASC, additional charges may apply to correct these errors. TASC will not be responsible for uncollectible overpayments to employees, unless such overpayments are due solely to TASC's negligence. c. Administrator will notify TASC in writing no later than fifteen (15) days prior to any changes to Administrator's: (1) bank accounts that will affect the Plan or provision of PayPath services, including but not limited to payroll, reporting, fee collection, or tax deposits; (2) filing frequency; or (3) tax rate or tax jurisdiction. Administrator will notify TASC promptly if Administrator expects to employ, or has employed, persons in tax jurisdictions not presently included in the Plan. TASC will not be responsible for late or incorrect tax deposits due to Administrator's failure to provide TASC with timely notifications. d. Administrator will make TASC aware of any local tax or state unemployment insurance requirements. TASC will not be responsible for ascertaining the Administrators' responsibility for local taxes or state unemployment insurance. It also shall be Administrator's responsibility to determine whether an individual constitutes an employee or independent contractor for tax and unemployment insurance purposes. Administrator will be responsible for forwarding any W -4 forms that require forwarding to IRS or any state agency. TC- 3923 - 080111 Employer Initial I , f` TASC 25