A POP (Premium Only Plan) part of IRC Section §125 is an excellent method for the employees to pay theirs and their dependent's portion of the group medical premiums and have them be tax deductible for themselves and the employer's FICA and SDI contributions.
To enroll the Employer just fills out a one page application, in one of the brochures below and pay a nominal fee, around $130/year for ALL employees. The Employees just fill out a salary reduction form (which will be sent to the Employer after enrollment) and either elect or decline participation in the POP plan.
 
Employer Links
IRS Site - FAQ's
IRS Guide to Fringe Benefits pdf
Allowable Medical Expenses -
IRS Section §213
Publication 502
Cash payments rather than Health Insurance? No
IRS Withholding Calculator
W-4 Form
California Payroll Reporting DE 6 or 9
EDD Employer's Guide 137 Pages
EDD Taxability of Employee Benefits DE 231 EB
Ceridian.com
Federal Insurance Contributions Act (FICA) tax
(Wikipedia)
Schedule A Itemized Deductions
1040
Medical & Dental Expenses Page 99 - A -1
Publication 502
IRS form 5500 is not required.
Administrators
Ceridian
Email Ceridian
1-800-767-4969
Ceridian Administrators Guide
Technical & Research Links
Cal Broker 125 Providers
Final Regulations IRS
Definition of Key Employees IRC §416 (i) (1) (A)
Treasury Regulation on Discriminatoin§1.125-7
FICA - US Code
Mr. Shorr,
I'm doing research on using 125 plans for employees who purchase individual insurance, and found your website very helpful, so I thought I would share the following legal analysis of mine, which might be helpful to others:
HIPAA_125_Policy_Brief
Mark A. Hall, J.D.
Professor of Law and Public Health
Wake Forest University
Winston-Salem NC 27109-7206
hallma@wfu.edu 336-758-4476
faculty/profile
                
   
Broker ONLY
MHM Agent Guide
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