Premium-Only Plan

Premium-only plans (POP) offer a way for you to control the cost of benefits and enjoy substantial savings by converting insurance premiums from an after-tax expense to a pre-tax expense.

How do premium-only plans work?
POPs reduce payroll taxes on the premium contributions of participating employees.

• POPs save employees an average of 30 percent in state and federal income taxes and FICA.
• As an employer, you save an average of 10 percent on FICA and other payroll taxes on the contributions of participating employees. Overall savings depend on total company payroll and the dollars employees contribute toward their benefits.

What expenses qualify?
Qualified, non-taxable insurance premiums and health plan dues that can be converted to pre-tax expenses include:

• Health
• Dental
• Vision
• Group term life/AD&D
• Disability
• HSA contributions

Calculate your company’s estimated tax savings.

Apply for a premium-only plan (pdf).

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