SRA

SRA (Smart Return Account) - The SRA is a bona fide fringe benefit plan that allows the contractor to contribute Service Contract Act wage fringe benefits for the benefit of their employees who can utilize their SRA account balance to help pay for qualified medical expenses on a pre-tax basis.

The benefits of the SRA include:

• Contractor saves all labor burden costs on fringe contributions.
• Employee saves FICA, federal, and state income tax on contributions deposited into their SRA account.
• Employee’s SRA account is 100% vested hour one.
• If employee terminates employment, account balance in SRA belongs to employee.
• Employee can continue to use account balance to pay qualified medical expenses.
• Contractor and employee can view account balances 24 hours a day, 7 days a week.