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Monthly Archives: November 2011

Section 125 Premium Only Plans (POP Plans)- Equal Opportunity and the Importance of Nondiscrimination Testing

Section 125 Premium Only Plans (POP Plans)- Equal Opportunity and the Importance of Nondiscrimination Testing [read more...]

November 30th, 2011 • 0 Comments

Premium Only Plans-A Tool to Compensate for Inadequate Employee Wages

With the mounting pressures placed legislatively on health care providers, premiums have seen a mounting increase over the last several years.   With the average cost in family health care premiums increasing 113% in the last decade, and businesses struggling to continue providing sponsored health benefits at reasonable prices, employees are feeling the squeeze where their finances are concerned.  Employees of businesses offering sponsored health insurance should promote the utilization of a Premium Only Plan for their sponsored health insurance.  Between the tax-savings POP plans provide employees and the increase in affordable benefit options premium only plans allow your company to offer, employee POP plan literacy and promotion is invaluable as a money saving strategy for employees. [read more...]

November 16th, 2011 • 0 Comments

Who Can Take Advantage of a Section 125 POP Plan?

Federal law (Section 125 of the IRS code of 1986) allows all employers to offer their employees the option to have payroll deductions for benefits like health insurance premiums to use pre-tax dollars. Also referred to as “cafeteria plans”, the basic version is a “premium only” or “POP” plan, allowing a company to facilitate pre-tax deductions for insurance premiums. This plan is relatively easy to set up, cost-effective to run, and simple to maintain. It puts more take-home pay in the hands of employees, and garners significant payroll tax savings for an employer who offers the plan. [read more...]

November 11th, 2011 • 0 Comments