Corporate Benefits, ERISA & PEO Glossary | Master Technical Guide (2026)

A Professional Employer Organization meeting rigorous IRS financial auditing, background checks, and surety bond requirements.

Contractual arrangement where the PEO acts as administrative employer of record for payroll taxes, while the client company directs operations.

Insurance policy protecting self-funded employer health plans against catastrophic individual or aggregate claims.

Hybrid health insurance model where employers pay fixed monthly premiums with surplus refunds in low-claim years.

Federal statute establishing fiduciary standards, disclosure mandates, and claims procedures for employer health and retirement plans.

Mandatory federal report filed with the IRS and DOL detailing financial conditions of employee benefit plans.

Statutory document required by ERISA explaining benefit coverage, claim procedures, and plan rules in plain language.

Multiplier applied to employer workers' compensation insurance premiums based on historical workplace injury claims.

Third-party administrator managing prescription drug programs and negotiating drug manufacturer rebates.

IRS-sanctioned benefit plan allowing employees to pay health insurance premiums and HSAs using pre-tax payroll dollars.

Federal mandate requiring employers to provide temporary continuation of health coverage following employee separation.

Federal regulation mandating that mental health and substance use disorder benefits receive equal coverage to medical/surgical benefits.

Affordable Care Act requirement that employers with 50+ full-time equivalent employees offer affordable, minimum-value health coverage.

Benefit of PEO co-employment where client companies can adopt the PEO's favorable State Unemployment Tax rate.

Corporate insurance policy protecting company executives from personal liability arising from ERISA benefit management errors.