Premium Only Plan, an employee benefit that can help both you and your employees reduce tax expenses by letting employees pay part of their health insurance premiums with pre-tax dollars.You and your employees pay less in taxes. With a POP, you can save money by lowering your tax expenses, and help your employees keep more money in their pockets.These Plans are for employers who do not want to offer a full Flexible Spending Account (FSA) Plan, but still want to offer a tax benefit for their eligible employees.

A POP is a Section 125 Cafeteria Plan that allows employer-sponsored premium payments to be paid by the employee on a pre-tax basis instead of after-tax. Coverage may include the following: Group Medical, Group Dental, Group Vision, Group Disability, Group Term Life.

Why offer a POP?
A POP provides a cost-effective alternative to satisfy an employer’s legal obligation when offering a pre-tax option for employer-sponsored benefits such as group insurance, or a Health Savings Account (HSA). However, it does not provide the same services and benefits as those available through a standard FlexSystem Flexible Spending Account (FSA).

Employer Benefits, Reduces payroll taxes (including Social Security and Medicare) for every dollar of employee contribution into the POP, employers save 7.65%. FICA taxes. Saves on the cost of administration: the tax savings gained often covers the entire cost of Plan administration.