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Plan Documents - Premium Only Plans
PREMIUM ONLY PLANS (POP)
Did you know that you could increase your employees take home pay while decreasing your FICA contributions without increasing salaries?
Section 125 of the Internal Revenue Code allows employees and employers to benefit from tax savings with a benefit plan called a POP or Premium Only Plan.
The Premium Only Plan allows an employee the ability to pay for his/her portion of their health benefit premiums with pre-tax dollars. These dollars are not subject to federal and FICA (social security) taxes and in most cases, state taxes. The employer saves their portion of FICA taxes on these premium contributions as well.
The following list of benefits qualify for tax free status,
Accident Insurance HMO Insurance
Cancer Insurance Vision Insurance
Dental Insurance Disability Insurance*
Group Health Insurance Group Term Life Insurance**
Contact SIEBA today to get started on savings.
* Caution: Disability insurance benefits are taxable when premium are paid for with pre-tax dollars
** Group Term Life Insurance is limited to up to $50,000 for employee only, spouse/dependent life
Not available on a pre-tax basis.
Creation date : 05/29/2009 @ 15h52 |
Flexible Spending Account (FSA)
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