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Dwayne B.
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Category: Employment Law
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Experience:  Employment Law Expert
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Small business who offers health insurance to s employees.

Customer Question

Small business who offers health insurance to his employees. Both company and employees contribute to their health insurance premiums. Do I need a fiduciary and documents under ERISA?
Submitted: 1 year ago.
Category: Employment Law
Expert:  Dwayne B. replied 1 year ago.

Hello and thank you for contacting us. This is Dwayne B. and I’m an expert here and looking forward to assisting you today. If at any point any of my answers aren’t clear please don’t hesitate to ask for clarification. Also, I can only answer the questions you specifically ask and based on the facts that you give so please be sure that you ask the questions you want to ask and provide all necessary facts. Please note: This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.

Many of the actions taken by an employer providing health insurance under a plan whereby a portion is contributed by the employee will make the employer a "fiduciary" to that employee. That is a position created by the nature of the actions as opposed to only being created by some type of "paperwork".

You do need a "plan" which includes documents which contain a description of the plan as well as various other items. Most small employers find it is a better idea to hire a third party administrator to handle this rather than doing it themselves since any mistakes can have serious repercussions from the government or from the employees.

The Department of Labor has a very detailed web page that explains all of these issues at

It is pretty lengthy but it is comprehensive and reading through it will quickly give you an idea of why most small businesses hire a third party administrator.

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