A Section 125 Premium Only Plan (POP) is a qualified employee benefit plan. When an employer offers health benefits to its employees, it can allow their employees to pay for their contributions to the health/vision/dental/disability/group term life insurance programs with pre-tax dollars. With this plan, employers and employees have the ability to make contributions pre-tax and earn significant savings every year. POP Is a great way to earn significant tax savings every year.
With our FSA administrative service, employers receive a POP for free from PrimePay. With a POP in place, Employers can save both themselves and their employees on pretax deductions by establishing pre-tax deductions in payroll. Deductions could include benefits like medical, dental, vision, etc.
Employers realize 7.65% in FICA tax savings. Employees average a 25% tax savings.