A POP. (Premium Only Plan) IRC Section §125 Internal Revenue Code is a way for the employees to pay their portion of the medical premiums and have it be tax deductible for employees and the employer saves on payroll taxes (FICA) this is a simple, IRS-approved change in your payroll process that allows you to use pre-tax salary dollars to pay your employees’ share of medical benefit premiums. Employees fill out a salary reduction contributions form either elect or decline participation in the POP plan. Changes to the POP plan can be made at plan anniversary, more details are in the brochures and law below. Premium contributions are only for employee and dependent coverage, they may not be given back in cash to the employee. IRS form 5500 is not required. Video Explanation
Brochures
Health Net What is a POP Application Brochure 14 pages
Blue Cross Ceridian Brochure P.O.P. Quote Engine FSA & POP Pages
Blue Shield POP Brochure
Aetna Brochure on POP
POP plan administration - Ceridian Current Clients - Ask Ceridian for help POP Savings Calculator - FICA only.
All of the Employer Group Companies work with this feature, Kaiser, Health NET, Blue Cross, Blue Shield, AETNA, Cal Choice, PacifiCare, if you don't find what you need, just email us.
Links
IRS Site - FAQ's
IRS Guide to Fringe Benefits pdf
Allowable Medical Expenses - IRS Section §213 Publication 502
Pay Check City - Deduction & Payroll Calculator
FICA - US Code Wikipedia
IRS Withholding Calculator
W-4 Form
Technical & Research Links
Cal Broker 125 Providers
Excel Spreadsheet
Final Regulations IRS
POP Discrimination Testing Worksheet
Definition of Key Employees IRC §416 (i) (1) (A)
Treasury Regulation on Discriminatoin§1.125-7
Ceridian Administrators Guide
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
