Premium Only Plan (POP)

Pretax Savings, Simplicity, Low Maintenance.

How Does It Work?

With a Premium Only Plan (POP), employers and employees can maximize their savings through pretax payroll deductions—as simple as converting employee-paid insurance premiums to a pretax status. POP provides tax savings to employers by reducing total taxable payroll, saving 7.65% in FICA taxes. It also offers employees favorable tax treatment on benefits already offered. Pretax contributions are automatically deducted from employees’ salaries, resulting in lower tax liabilities and more take-home money each pay period.

Covered Expenses Include:

• Accident
• Health
• Dental
• Group Term Life (50k or more)
• Vision
• Disability

Who Is Eligible?

Any employee who pays a portion of his/her premium is eligible to be included in the POP, and only the employee portion of the contribution is eligible. Owners (including their spouses and dependents) of an S Corporation, Partnerships, LLC or Sole Proprietorship are not allowed to participate in IRS section 125 POP.

Stay in Compliance.

Key rules that govern a POP include:

• Plan document, Summary Plan Description and Non-Discrimination testing
• IRS Form 5500 annually, if applicable

BeneFLEX provides POP services to help you satisfy the above requirements, including plan document development and installation assistance!

Save BIG with POP!** For every employee that contributes $200 per month to their PPO premium, they save almost $800 per year and save their employers $180 per year!