Pop Insurance Plans

Premium only plans pop can generally be defined as a type of cafeteria plan where the only pre tax benefit available to employees are for those of insurance premiums.

Pop insurance plans. This helps them save on health insurance costs while you save on certain payroll taxes. The premium only plan is the building block of the section 125 plan. Tax benefits for your business. Insuranceopedia explains premium only plan pop the premium only plan essentially allows employees to save money on taxes by using some pre tax income to pay the premiums on various types of employer sponsored insurance.

The section 125 premium only plan pop which is a very common type of cafeteria plan allows employers to offer benefits in accordance with section 125 of the internal revenue code hence the name. Use the calculator below to determine how much your business can save annually. It does not provide the same services and benefits as those available through a standard fsa. A pop provides a cost effective alternative to satisfy an employer s legal obligation when offering a pretax option for employer sponsored benefits such as group insurance or an hsa.

Each type of health insurance system will offer different options as you obtain services and the services are received through a network. Why choose a pop plan. Reduce your payroll tax costs social security medicare and other payroll tax expenses. Those benefits include group health insurance and supplemental benefits such as group term life insurance disease specific insurance accidental death insurance and others.

Start running payroll and benefits with gusto specifically a cafeteria plan allows employees to either. The pop is often used to pay for health insurance dental insurance and hospital indemnity. Now whenever non taxable benefits are involved the irs will usually have some strict rules in place that must be followed. In other words the premiums are tax free within a pop or cafeteria plan.

It allows for certain employee paid group insurance premiums to be paid with pre tax dollars. Health maintenance organization hmo preferred provider organization ppo point of service pos and exclusive provider organization epo plans are all types of managed healthcare. Pop benefits both you and your employees. In combination with group health insurance a premium only plan pop pays a portion of employee paid insurance premiums on a pre tax basis.

The qualified premiums if offered by employer are.