Press "Enter" to skip to content

Posts tagged as “Premium Only Plan”

Pre-tax or Post-tax Deductions (aka Pay Now or Pay Later)


Under regulations of Section 125 of the Internal Revenue Code, an employer can implement various Plans which allows employees an opportunity to receive certain benefits on a pre-tax basis.   In this article, we will look at the Premium Only Plan (POP), where employees can elect to pay their portion of insurance premiums on a pre-tax basis, creating a savings for both the employee and the employer. Setting up a POP is simple and you just need to have a Plan Document and Summary Plan Description in place that describes all benefits and establishes the rules for eligibility and elections.  (If…