Equifax, Inc. · NYSE:EFX
Equifax — Equifax Product Webinar Series (June 2025)
36 slides from Equifax's conference presentation, Jun 24, 2025
Slide 1: Product Webinar Series: SUB-Pay Plans
EQUIFAX Product Webinar Series SUB-Pay Plans Helping You Maximize Separation Cost Efficiency June 24, 2025
Slide 2: Thanks For Joining Our Webinar
Thanks For Joining Our Webinar Welcome! Questions? Recording Thank you for joining our Please enter your questions This webinar is being webinar. Stay tuned for in the chat box on your recorded. You will receive an more from Equifax! screen at any point during email with a link to view the the prese
Slide 3: To Keep Our Lawyers Happy
To Keep Our Lawyers Happy The information provided herein is intended as general guidance and is not intended to convey specific tax or legal advice. For a legal opinion, please consult your lawyer. This presentation is intended for the education and benefit of our customers and potential customers. T
Slide 4: Today's Subject Matter Expert
Today’s Subject Matter Expert Tom Towson, CPA Managing Director - Employment Tax Consulting Solutions Equifax PROPRIETARY 4
Slide 5: Agenda
Agenda ■ SUB-Pay Plan Overview ■ SUB-Pay Plan Example ■ SUB-Pay Plan Requirements ■ Use of Third-Party Administrators ■ Frequently Asked Questions PROPRIETARY 5
Slide 6: SUB-Pay Plan Overview
SUB-Pay Plan Overview Supplemental Unemployment Benefit Plans PROPRIETARY 6
Slide 7: Severance pay is often granted to employees upon termination
Severance pay is often granted to employees upon termination of employment. It is usually based on length of employment for which an employee is eligible upon termination. There is no requirement in the Fair Labor Standards Act (FLSA) for severance pay. Severance pay is a matter of agreement between
Slide 8: Types of Severance and Separation Benefits
Types of Severance and Separation Benefits Unlike other benefit plans, severance and separation benefit plans are often handled confidentially, making it more difficult to identify industry standards or to perform accurate benchmarking. Without comparison information widely available, many organizations r
Slide 9: History of SUB-Pay Plans
History of SUB-Pay Section 501(c)(17) added to the IRC of 1954 [regulations followed in Plans Rev Ruling 56-249 established 1968]. Rev Ruling 60-330 announced that SUB payments paid The CSX Corporation v. United from an employer’s general assets, States case further established initial guidelines fo
Slide 10: SUB-Pay Plans
SUB-Pay Plans Converting Taxable Severance Pay into a More Tax-Efficient Benefit SUB-Pay Plans are designed to supplement state unemployment insurance (“SUI”) benefits. Cost savings is primarily derived from the following plan features: SUI Supplement Duration Exemption from Cash Offset Cash Offset Employ
Slide 11: Benefits of SUB-Pay vs. Traditional Severance
Benefits of SUB-Pay vs. Traditional Severance Mitigation of Payroll Taxes Economic Benefits Benefit Period can Match Unemployment Period ● Because the IRS classifies SUB-Pay as ● SUI benefits reduce the amount paid ● Because SUB-Pay is tied to state benefits rather than wages, certain by the employer, dol
Slide 12: SUB-Pay Plan Example
SUB-Pay Plan Example PROPRIETARY 12
Slide 13: SUB-Pay Plan Example
SUB-Pay Plan Example An employee with a weekly base pay of $1,000 is laid off and has been with the organization for 12 years. Under a SUB-Pay Plan, the employee applies for state unemployment benefits and is eligible to receive $452 per week.* The company then supplements the difference by paying the
Slide 14: SUB-Pay Plan Requirements
SUB-Pay Plan Requirements PROPRIETARY 14
Slide 15: SUB-Pay Plan Requirements: Written Plan
SUB-Pay Plan Requirements Written Plan ● The Plan must be in writing. ● Employer sponsored benefit plan. ● States generally must be notified of the Plan and in certain states, require approval. ● Plan must be used solely for the purpose of providing supplemental unemployment compensation benefits to pa
Slide 16: SUB-Pay Plan Requirements: Integration with SUI Benefits
SUB-Pay Plan Requirements Integration with SUI Benefits ● Employees must file and be eligible for SUI benefits to be a participant in a SUB-Pay Plan. ● Should the participant find new employment, and is no longer eligible for SUI benefits, the participant and employer are no longer able to treat future p
Slide 17: SUB-Pay Plan Requirements
SUB-Pay Plan Requirements Involuntary Separation Paid Over a Period of Time Income Tax Withholding Benefits must be paid to an SUB-Pay Plan benefits cannot Although exempt from employee because of the be paid in a lump sum.* If a certain employee and employee’s involuntary lump sum payment is made emp
Slide 18: Use of Third-Party Administrators
Use of Third-Party Administrators PROPRIETARY 18
Slide 19: Implementing a SUB-Pay Plan
Implementing a SUB-Pay Plan Phase 1 Phase 2 Phase 3 ● SOW and project setup ● Plan document finalization ● Finalize testing file ● Initial design of SUB plan and sign off exchanges ● Draft of plan documents ● Plan submissions for state ● Finalize IT security protocols ● Define communications approval ●
Slide 20: Plan Design Considerations
Plan Design Considerations SUB-Pay Plans offer significant design flexibility, allowing for either enhanced benefits for departing employees Written Plan or optimized cost savings for the employer. SUB-Pay Plan design options include: ● A re-employment bonus (typically a percentage of the remaining bene
Slide 21: Third-Party SUB-Pay Plan Administrators
Third-Party SUB-Pay Plan Administrators Dedicated to the Design, Implementation, and Administration of SUB-Pay Plans Plan Sponsor (Employer) Support ● Customize plan communication materials (e.g., Summary Plan Descriptions or SPDs). ● Comprehensive outsourcing, including payroll. ● Tracking of all c
Slide 22: Third-Party SUB-Pay Plan Administrators
Third-Party SUB-Pay Plan Administrators Dedicated to the Design, Implementation, and Administration of SUB-Pay Plans Participant (Former Employee) Support ● Dedicated “high touch” participant support. ● Research and help respond to all plan participant questions. ● Assist participants who have issue
Slide 23: Sample Employer Experience
Sample Employer Experience Notify Preparation and Payroll Dedicated Plan Real-time and Administrator of Distribution of Administrator On-Demand Termination EE Packages Reporting ● Before employee is ● Important ● Calculate benefit ● Direct line access, ● Plan savings advised (if possible) Information
Slide 24: Sample Employee Experience
Sample Employee Experience Materials Materials from File Claim for Administrator SUB SUB-Pay from HR Administrator SUI benefits Client Services Payments Services ● Separation letter ● Important ● State UI benefit ● Dedicated 800# ● Withholding ● No Response ● FAQs Information letter claim document ● P
Slide 25: Frequently Asked Questions
Frequently Asked Questions PROPRIETARY 25
Slide 26: Frequently Asked Questions
Frequently Asked Questions Q: When Should I Consider Implementing A SUB-Pay Plan? It’s always a good time to consider implementing a SUB-Pay Plan. Whether you don’t have any A: layoffs planned, have an upcoming RIF, or are currently in the process of transitioning employees, the nature of SUB-Pay Pla
Slide 27: Frequently Asked Questions
Frequently Asked Questions Q: Are SUB-Pay Plans only for permanent Reductions in Force (RIFs)? In addition to permanent RIFs, SUB-Pay Plans offer a valuable solution to temporary furloughs A: and operational downtimes. During downtimes, a SUB-Pay Plan allows employees to maintain a secure, more relia
Slide 28: Frequently Asked Questions
Frequently Asked Questions Q: I have never heard of a SUB-Pay Plan. Why? Severance and Separation Benefit Plans are typically kept confidential and are disclosed A: minimally, and thus it is predictable that people who have not worked for a company with a SUB-Pay Plan are unaware of its existence. The
Slide 29: Frequently Asked Questions
Frequently Asked Questions Q: Is a SUB-Pay Plan a fit for my organization? An important aspect of a company’s severance plan is that it fit the culture. For instance, if A: your organization subscribes to an “entitlement culture,” paying out a lump-sum windfall in amounts correlating to a job level mi
Slide 30: Frequently Asked Questions
Frequently Asked Questions Q: Do employees still have to file for SUI? Yes, employees have to file for SUI benefits. However, the entire A: process can be done online (with some exceptions) and with the assistance from an Administrator. PROPRIETARY 30
Slide 31: Frequently Asked Questions
Frequently Asked Questions Q: Is this legal in my state? Yes! Unlike traditional severance payments, all 50 states A: allow released employees to collect SUI benefits and company-sponsored SUB-Pay concurrently. PROPRIETARY 31
Slide 32: Frequently Asked Questions
Frequently Asked Questions Does a SUB-Pay Plan encourage former employees to file for unemployment, Q: which could drive up SUI tax rates over time? ● It is possible that former employees could collect SUI benefits under a SUB-Pay Plan versus under a traditional severance plan A: that could have an im
Slide 33: Frequently Asked Questions
Frequently Asked Questions Q: My organization doesn’t have any layoffs planned. Why should I do this? It’s important to begin the SUB-Pay Plan implementation process before layoffs A: occur. After a RIF has been announced, it’s often too late to change your severance policy. The best time to evaluate
Slide 34: Frequently Asked Questions
Frequently Asked Questions Q: Isn’t this a lot of administrative work for me? No! Working with a third party puts most of the A: administrative work in the hands of the experts. PROPRIETARY 34
Slide 35: Q&A
EQUIFAX Q&A
Slide 36: Next Steps
Next Steps 1 SURVEY 2 CONTACT 3 CONNECT Complete the survey Want to talk to someone about Subscribe to Let’s Talk HR for updates: through the webinar your Tax strategy? Click on the workforce.equifax.com/insights console “Want to Get In Touch” button on your webinar console or contact us at: workfor