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).
• Reduces payroll taxes (including Social Security and Medicare):
for every dollar of employee contribution into the POP, employers save 7.65%
• Saves on the cost of administration: the tax savings gained often covers the entire
cost of Plan administration.
|Number of POP
|National Average Paid
|Plan Year||Pre-Tax Dollars
Spent Per Year
|30||x||$300 per month||x||12 months||=||$108,000|
• 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:
Call us at 1-888-595-2261, ext. 17730 or email firstname.lastname@example.org.
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.
Premium Only Plan (POP)