The Premium Only Plan (POP) is a tax-savings plan for groups where employees share in the cost of benefits through payroll deduction.
Employees save $25 to $40 on every $100 they contribute through payroll deduction. Qualified contributions include an employee's share of employer-sponsored health, dental, disability, accident, and group-term life insurance. An employee's share of contributions to a Health Savings Account (HSA) will also qualify for tax savings when paid through payroll deduction.
The Premium Only Plan saves the employer taxes as well. That's because the employer saves about 8% (the FICA payroll tax match) on every dollar employees contribute through payroll deduction.
Use the links above to learn more about Premium Only Plans.
Click here for important information about states that have mandated employers have Premium Only Plans.
Click here for the Insights EZPOP newsletter.