POP | Premium Only Plan
MAXIMIZE TAX SAVINGS.
IRC SECTION 125 CAFETERIA PLAN
To get the most out of your group-sponsored benefit plan, employees should have the option to make premium payments on a pre-tax basis. But the IRS requires a Premium Only Plan (POP) to facilitate the necessary payroll deductions.
Group health insurance plans
Health Savings Account (HSA) contributions
Voluntary premiums (e.g. vision and dental care)
Group-term life insurance premiums (under $50,000)
COMPLY WITH CONFIDENCE
Choose a partner with the experience and expertise to help you get it right—right from the start.
MAXIMIZE TAX SAVINGS
Give your people an instant raise by enabling them to save on income and payroll taxes. Or you can share more of the premium costs without reducing employee take home pay. Plus, your organization will be able to capitalize on FICA tax savings—nearly 8% on every dollar.
DON’T RISK NONCOMPLIANCE
Failure to adhere to Section 125 regulations can bring unwanted headaches. Deductions may be disallowed back to inception. Employers and employees may be taxed on past deductions (with interest). And the IRS may assess “improper withholding” penalties, which may require repayment for FICA taxes.
SIMPLICITY AT EVERY STEP
Get up and running quickly. Our team will help you create, populate and file all the necessary documents in only a few weeks.
We make it easy to maintain compliance. Each year we’ll help you update, amend and re-file your POP.
Our team is available for you every day of the week. We’ll help you get the most from the benefits you offer.
Ready To Act?
We make IRC Section 125 compliance easier than ever.
Contact the POP Team
For questions about your account, submitting your application or general inquiries.
HealthEquity does not provide legal, tax or financial advice.