Advanced Flex Plan Administration with the Human Touch
Advanced Flex Plan Administration with the Human Touch
Premium Only Plan
A Premium Only Plan (POP) allows both the Employer and employees to save taxes on employee paid group health and other insurance premiums. Regulations require Employers who allow employees to pay for premiums with pre-tax funds to have a Premium Only Plan document in place at all times.
Eligible Pre-tax Premiums
- Medical insurance premiums
- Dental insurance premiums
- Vision premiums
- Accidental death and dismemberment
- Employer group term life insurance (subject to restrictions)
- Short-term and long-term disability coverage
- Accidental death and dismemberment
How a POP Saves
Employers
- Employers save FICA matching tax on employee premiums.
Participants
- Depending on income, each employee can save 25% to 40% on premiums.
How it Works
Premium Only Plan Document
EMPOWER creates an IRS compliant Plan Document the first year customized to meet the Employer’s specific needs. Then, on an annual basis, EMPOWER amends and restates document to ensure compliance.
Summary Plan Description
EMPOWER creates a Summary Plan Description (SPD) that explains the plan details to employees in simple language.
Election Form
An Election Form and Compensation Reduction Agreement is provided to enable employees to enroll in the Plan.
Benefit Change Form
EMPOWER provides a Change in Status Form that employees may use to change an election and/or leave the Plan if they have a qualifying event.
Discrimination Testing
The IRS requires that Employers who adopt a POP perform discrimination testing annually. This testing ensures that the Plan does not discriminate in favor of highly compensated or key employees. EMPOWER provides a discrimination testing form that the Employer completes to ensure IRS compliance.
Ongoing Plan Support
EMPOWER provides ongoing support throughout the Plan Year.
