A POP. (Premium Only Plan) 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 Power Point Slide Show
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
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, HealthNET, 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
