Premium Only Plans (POP)
 If
your employees pay for any part of
their insurance premiums - for
themselves and/or their dependents
- a
Premium Only Plan
(POP) allows them to do so
pre-tax.
The "plan" is a
legal document that makes it
legal for you, the employer,
to withhold money from
employees' paychecks to pay
premiums.
Employees
income is reduced, and
employer payroll is reduced,
which reduces everyone's
taxes. It's a win-win!
Some carriers
have partnerships with
specific POP vendors for
discounts or waivers on
document fees. We can help you
choose a vendor with
reasonable set-up and
renewal fees.
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Flexible Spending Arrangements (FSAs)
 Flexible
spending arrangements (FSAs) allow
the employer and/or employee to
contribute pre-tax dollars to
special accounts to reimburse
medical and dependent care
expenses.
Monies not used during the
calendar year or during
the documented grace period
revert to the employer.
Medical Expense Reimbursement
Can be used to
pay for qualified
medical expenses under IRS
Pub 502, including listed
over-the-counter (OTC) products.
The employer sets a cap on
contributions; the employee
chooses how much to contribute.
Funds are "use it or lose it,"
but current rules allow
employers to offer a 2-1/2 month
grace period after the end of
the plan year.
Dependent Care Expense
Reimbursement
Can be used for
childcare expenses up to $5,000
tax-free per year under IRS
Dependent Care Expenses rules.
If married, both spouses must
earn income to exclude funds
from wages.
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Health Reimbursement
Arrangements (HRAs)
Health Reimbursement
Arrangements are funded by
employers to reimburse employees
for qualified medical expenses
per IRS Publication 502.
Employees can also use HRA funds
to pay for medical premiums.
They can be structured in a
variety of ways, but are often
used in conjunction with a high
deductible health plan.
We recommend an HRA as an option
to meet the City and County
of San Francisco's Employer
Spending Requirement.
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Health Savings Accounts
(HSAs)
Health Savings Accounts are
special tax-qualified accounts
that can only be used with
compatible qualified
High-Deductible Health Plans.
These plans differ from
traditional plans in significant
ways.
Both the employer and employee
can contribute on a pre-tax
basis. Accounts are fully
portable and are owned by the
employee.
We recommend HSA plans as one
choice in a portfolio of
employer plan offerings.
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401k Retirement Plans
With a 401k plan, employers and
employees contribute pre-tax to
a retirement account. Usually
employers will match a
percentage of employee
contributions. Even small
companies can set up a 401k. It
shows employees you care about
their future.
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Pre-tax Transit & Parking
 The
IRS allows public transportation
and parking costs to be paid
for pre-tax, up to annual
limits.
Several vendors provide
services. We use WageWorks -
employees love it because
passes get delivered in the
mail direct to their door! For
employers it's easy to set up
online and easy to administer.
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