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Premium Only Plan

Name: Premium Only Plan
SKU: FA-001
Availability: InStock

$425.00

What Is a Section 125 Premium Only Plan?

A Section 125 Premium Only Plan (POP) allows employees to pay their share of employer-sponsored health insurance premiums with pre-tax dollars rather than after-tax income. By making this simple adjustment to payroll deductions, both employees and employers can realize significant tax savings.

Under a Premium Only Plan, employees elect to have their portion of health insurance premiums deducted from their pay before federal income taxes and, in most cases, Social Security and Medicare taxes are calculated. As a result, taxable wages are reduced, lowering tax liability for both the employee and the employer.

How Employees Benefit

Employees typically save between 20% and 40% on the portion of health insurance premiums paid through a Section 125 Plan, depending on their tax bracket and state of residence. Because premium contributions are made on a pre-tax basis:

Federal income taxes are reduced.
State and local income taxes may be reduced, where applicable.
Social Security and Medicare taxes are generally reduced.
Take-home pay increases without any increase in gross compensation.

These tax savings help make health insurance coverage more affordable for employees and their families.

How Employers Benefit

Employers also benefit from implementing a Section 125 Premium Only Plan because employee pre-tax deductions reduce taxable payroll. As a result, employers generally save on:

Employer-paid Social Security taxes
Employer-paid Medicare taxes
Federal unemployment taxes (FUTA), in certain situations
State unemployment taxes, where applicable

Depending on state law, some employers may also experience reductions in workers’ compensation premiums due to lower taxable payroll. These savings can often offset or exceed the cost of establishing and maintaining the plan.

A Section 125 Premium Only Plan is one of the simplest and most effective employee benefit strategies available, providing meaningful tax advantages for both employees and employers while helping make health insurance coverage more affordable.

Here’s what will happen next:

Step 1: Complete the enrollment form below

Step 2: A benefit plan advisor will review your questionnaire for completeness.

Step 3: Once the review is complete, we’ll prepare and email your Plan Document, SPD, Forms, helpful guides, and easy-to-follow signing instructions.

Options

Purchaser Name(First/Last) : *

Purchaser Address/City/State/Zip : *

Purchaser Phone : *

Purchaser E-mail : *

Employer : *

Employer Address/City/State/Zip : *

Document Signer(First/Last Name) : *

Employer Phone : *

State of Incorporation : *

Number of Employees : *

Name of Benefit Programs to be Offered: (Check those you wish to include): *

Accident Insurance :

Cancer Insurance :

Dental Insurance :

Group Term Life :

Health Insurance :

HSA :

Vision Insurance :

Eligibile Employee Work More than _____ hours per week. : *

Effective Date *

Effective Date :

Description

Description

Premium Only Plan includes:

Resolution to Adopt a Plan- Includes minutes of the meeting to adopt the HRA Plan as an employee benefit.
Plan Document – Plan Documents are personally prepared for each church and kept on file for review for IRS, etc.
HRA Summary Plan Description (SPD) – Explains the Plan Purpose, Who is Eligible, How To Enroll, etc. in easy to read language. Also includes all information required by the Internal Revenue regarding the Plan Year Start and End Dates, Agent for Legal Service, Fed. ID#, and information regarding COBRA, FMLA, and required DOL information.
Election and Claim Form – Personalized for your church, it will include the Election Agreement and Claim Form to submit bills to the church for reimbursement.
Administrative Handbook – Includes sections on Administration, Non-Discrimination Testing, and Reporting and Disclosure information.

Premium Only Plan

Premium Only Plan

Options

Name of Benefit Programs to be Offered: (Check those you wish to include): *

Effective Date *

Description

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