Premium Only Plan
Premium Only Plan (POP) allows for employees to pay for a variety of employer-sponsored benefits, such as health, dental, and vision with pre-tax dollars, ultimately reducing taxable compensation.
Benefit to Employer:
The employer saves on the amount of matching FICA tax the employee has withheld from their paychecks on a pre-tax basis. If only a few employees choose to take advantage of the ability to pay health insurance premiums with pre-tax dollars, the employer can still realize a net financial gain.
Easy and Inexpensive Set Up.
Employers are able to add value and savings to their benefit package with one quick payroll adjustment. The POP is an effective way for business owners to allow employees to pay for employer sponsored group health care by utilizing pre-tax dollars.
Benefit to Employee:
Increased Take-Home Pay.
Participating employees benefit from the ability to pay their share of employer-sponsored benefit premiums, including health, dental, and vision, with pre-tax dollars through salary reduction. This saves employees Federal, State and FICA taxes.
Affordable Health Care.
Depending on an employee’s family income, the amount of money that individuals can save by paying for health insurance this way is between 25 to 50% of their total insurance premium. Ultimately this benefit provides a tax savings, while also helping to defray the cost of insurance premiums.
Continue to POP: Eligibility