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Premium Only Plan (POP)

Save on group insurance premiums with pre-tax dollars

For some employers, Premium Only Plans (POPs) are a great solution! These Plans are for employers who do not want to offer a full Flexible Spending Account (FSA) Plan, but still want to offer a tax benefit for their eligible employees.

A POP is a Section 125 Cafeteria Plan that allows employer-sponsored premium payments to be paid by the employee on a pre-tax basis instead of after-tax. Coverage may include the following...
...Group Medical
...Group Dental
...Group Vision
...Group Disability
...Group Term Life Insurance

The result is a tax savings for employers and employees alike!

Why offer a POP?
A POP provides a cost-effective alternative to satisfy an employer's legal obligation when offering a pre-tax option for employer-sponsored benefits such as group insurance, or a Health Savings Account (HSA). However, it does not provide the same services and benefits as those available through a standard FlexSystem Flexible Spending Account (FSA).

      Employer Benefits...
      ...Reduces payroll taxes (including Social Security and Medicare):
          for every dollar of employee contribution into the POP, employers save 7.65%
          FICA taxes.
      ...Saves on the cost of administration: the tax savings gained often covers the entire
          cost of Plan administration.

Number of POP
Participants
  National Average Paid
Employee Premiums
  Plan Year   Pre-Tax Dollars
Spent Per Year
30 x  $300 per month x 12 months = $108,000
Employer FICA savings = $8,262 annually

      Employee/Participant Benefits...
      ...Reduces income taxes (Federal, State, and FICA): pre-tax payroll deductions
          result in a lower taxable salary.
      ...Increases take-home pay.

Why choose FlexSystem?
FlexSystem takes the administrative burden out of offering a reimbursement program. We manage all aspects of administration and work closely with employers to ensure complete satisfaction, including seamless implementation, accurate ongoing administration, and dependable compliance. 

Employers and employees alike enjoy unrivaled services and innovations with our FlexSystem Plans:

      For Employers...
      ...Plan Document
      ...Summary Plan Description
      ...POP Special Safe Harbor
         Non-Discrimination Test

For Employees...
...Non-Discrimination Testing
...Money Back Guarantee

Establish a FlexSystem POP today!

Call us at 1-888-595-2261, ext. 17730 or email insidesales@tasconline.com.
Current FlexSystem Clients and Participants: Please login to your MyTASC account,
select Contact Us, and submit a MyService Request, or call 1-800-422-4661 for assistance.

FSA - SECTION 125 - FLEXIBLE SPENDING ACCOUNTS | HRA - SECTION 105 - HEALTH REIMBURSEMENT ARRANGEMENTS | HSA - HEALTH SAVINGS ACCOUNTS | COBRA ADMINISTRATION | FMLA ADMINISTRATION | ERISA ADMINISTRATION | PAYROLL ADMINISTRATION

Premium Only Plan (POP)