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Premium Only Plan (POP) Tax Savings

Everyone saves

A Premium Only Plan ( POP ). is a simple, IRS-approved change in your payroll process that allows you to use pre-tax salary dollars to pay your employees’ share of benefit premiums. Any size employer can take advantage of this special provision of Section 125 of the IRS code.

As a result, both employers and employees profit. Employees reduce their taxable income, which lowers their taxes and increases their take-home pay. You cut your payroll taxes by decreasing your total taxable payroll. Everybody wins – and saves.

POP Employer Advantages

  • Lower payroll taxes means more company funds can be used for other business needs
  • Increased employee satisfaction
  • Low pricing at $69 per year
  • Simple and quick plan set-up

POP Employee Advantages

  • More take-home pay
  • Reduced taxes
  • Tax savings pays for partial costs of premiums

Employer & Employee Tax Savings

Premium Only Plan POP Employee & Employer Tax Savings
How a POP Plan Works
  • Any size employer can take advantage of a Premium Only Plan
  • All you do is adjust your payroll process to deduct the employee portion of your group insurance premiums on a pre-tax basis instead of after-tax.
Types of Insurance Plans that Qualify
  • Group Medical Insurance
  • Group Dental Insurance
  • Group Vision Insurance
  • Accident Plans
  • Short & Long-term disability plans (taxes may apply to claims)
  • Group term life (up to $50,000 of coverage)
  • Health Savings Account (HSA) Contributions
A POP can be established for any employee, including:
  • Members of a controlled group of corporations
  • Members of a group of commonly controlled trades or businesses
  • Members of an affiliated service group
The IRS prohibits certain individuals from participating in a POP:
  • Sole proprietors
  • Partners within a partnership including LLC and LLP members
  • Owners of an S corporation

Even though these individuals cannot participate in a Premium Only Plan personally, their businesses can still benefit from the tax advantages of setting up a POP. for their employees.

Complete the below form and start saving on taxes today!  You’ll be taken to the online checkout (one-time fee of $69) area upon form completion..

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