Premium Only Plans

*** As a third party administrator we do NOT sell insurance products and our administrative services are totally independent of the policies, benefits carrier, or insurance broker relationship an employer group already has in place.***

Premium Only Plans – for employers/ for brokers

A Premium Only Plan, or POP is the only way to enhance your employee benefit package while actually saving you money! The POP is an exciting concept in employee benefit programs created through certain provisions of Section 125 of the Internal Revenue Code. IRC Section 125 provides for tax-exempt treatment of employee premium contributions to certain employer sponsored group benefit plans.IRC Section 125 considers POP pre-tax premium contribution dollars as employer dollars for tax purposes. As a result, your company’s total taxable payroll is reduced by the amount of the employee contributions. A reduced payroll results in lower payroll-related taxes! The amount of savings depends on total company payroll and how much employees contribute toward their benefits, but any size company can implement a POP plan and save money!

The same kinds of savings are available to every employee in your company who makes a contribution toward their insurance benefits. Because employees reduce their taxable income by the amount of that premium contribution, they pay less income and Social Security Taxes – This savings actually increases their take home pay!

Premium Only Plans can be established for any single employer or certain “related employers,” including members of a controlled group of corporations, members of a group of commonly controlled trades or businesses, or members of an affiliated service group. Certain individuals however are prohibited from participating in a POP plan. These include sole proprietors, partners within a partnership or owners of a Sub-Chapter S Corporation.

Since you can have a short plan year, there’s no reason you can’t start right now.

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