 More
and more employers are asking employees to share in their
health insurance premiums. Allowing employees to do so
pre-tax makes sense for everyone.
To do so legally under Section 125 of the Internal Revenue
Code, special forms must be completed and filed before the
plan is in place.
Tax benefits of a POP
POP plans have several tax advantages:
- Employees save on income and FICA taxes
- Employee take-home pay increases
- Employers save on payroll taxes
How to establish a POP
Carriers: Most carriers offer a "Premium Only Plan"
option which provides annual POP plan administrative
services for a fee (or sometimes for free).
POP services are provided through a third party, such as
Ceridian, Conexis or Legal Systems Marketing Corporation.
Fees run approximately $100- $125 per year.
Attorneys: Document filing services are also
available from attorneys, usually at higher fees.
If you are interested in setting up a POP plan, call us
for information about your specific carrier. 415.543.8949
Questions? Email us at
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