Premium Only PLan
Premium Only Plan (POP)
The Premium Only Plan (POP) is an employee benefit that assists both the employer and the employees in lowering their tax expenses by allowing employees to pay a portion of their health insurance premiums with pre-tax dollars.
Benefits of a Premium Only Plan
For the employer:
- Reduces payroll tax costs (Social Security, Medicare and other payroll tax expenses)
- Off sets costs of increased benefit premiums with payroll tax savings
- Decrease health insurance contributions with minimal effect on employee costs:
- If employees are not contributing to their health insurance premiums, you can implement a strategy to require a contribution with minimal salary impact
- If employees contribute to their health insurance premiums, you may be able to increase their contribution without impacting their take-home pay
For your employees:
- Taxable salary is reduced because pre-tax dollars are used to pay a portion of their insurance premiums
- Because less tax is paid, amount of take-home pay is increased
With the Premium Only Plan, our dedicated staff will help calculate your savings and assist you in implanting your plan while you stay in compliance.
If you are using Worksite Pay payroll services, your POP integrates seamlessly with the existing payroll process. Materials needed for enrollment, plan management, a Premium Only Plan document, plan summary, and plan reporting will be provided to you. As an added service to you, we maintain the required documentation necessary to keep you in compliance.