Premium Only Plan (POP)

Under Section 125 of the IRS code, an employer may sponsor a plan for its employees that will allow them to pay for group health premiums, other qualified insurance premiums, unreimbursed medical costs, and child/dependent care costs with tax-free dollars! A Section 125 Cafeteria Plan, also called a Premium Only Plan (POP), allows employees to pay their portion of the group insurance premium on a pre-tax basis and is a good start to saving on taxes for the business and the employee.

Northrim Benefits Group can help you set up a POP plan with proper documentation, notify and educate employees, and arrange for necessary non-discrimination testing.

Contact us today to see if your business is eligible for a Section 125 tax-advantaged plan.