Wage-Loss Replacement Plan (WLRP)

A plan to which is any arrangement, however it is designed, between an employer and employees, or between an employer and a group or association of employees, under which arrangements are made for indemnification of an employee, through benefits payable on a periodic basis, if an employee suffers a loss of employment income due to an illness, pregnancy, or accident. This arrangement typically is formal in the set up such as with a contract between an employer and employees. Income from these plans are generally considered taxable.