section 125 premium only plan

Section 125 - Premium Only Plan Documents (POP)

Why is a Premium Only Plan Important to Employers and Employees?

POP plans are governed by Section 125 of the IRS tax code. A Premium Only Plan (POP Plan) is also known as a Cafeteria Plan.  Employees enrolled in a POP plan can set aside insurance premiums and other funds pretax that you can use for certain qualified medical and child care expenses. Since more participants in the plan equate to more tax savings for the employer, it’s suggested that the employer contributes to each employee’s plan to promote increased participation by those not yet in the section 125 plan. We offer a way for you to control the cost of employee benefits and enjoy substantial savings.

  1. The most significant advantage of a Section 125 Premium Only Plan (POP) is its tax-advantaged status.
  2. When you pay for insurance through a Section 125 POP plan, the premiums are deducted from your paycheck on a pretax basis – that means they come out of your taxable income, reducing both your income tax and FICA taxes. It’s like getting an instant pay raise!
  3. Remind your employer that he gets this benefit too – his matching share of FICA and Medicare are reduced, as are FUTA and possibly state unemployment taxes.
  4. Employers can increase their employees’ share of insurance premiums without negatively affecting their take-home pay.

We make it easy to file your POP Documents

HR Service provides online –  24/7  – POP Document Services that include:

  • Create, store and edit section 125 POP documents within our online management system.
  • Documents are updated automatically with required IRS changes.
  • Includes 125 POP Summary Plan Description (SPD).

Why Choose HR Service for Section 125 (POP) Reporting?

One Low Annual Fee

While most companies have yearly document fees and charge per amendment, our low annual fee includes all amendments and critical updates to your documents.

Fast, Easy and Accurate

We keep your document current when there are changes in the IRS requirements. We provide everything you need for a formal plan document. Best of all, it only takes a few minutes to create.

Law Requirements

Federal law requires all employers to submit a Section 125 if offering tax-free benefits to their employees.

Updated & Automated

Many companies have a Section 125 POP plan document on file, but it is out of date. Our automated and real-time updates make staying in compliance with a breeze.

pop premium only plan
Let us Help You with Your POP Docs Today!

Just complete the form or email or call toll free 833.685.8400 x1

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