A Premium Only Plan (POP), established by the Internal Revenue Code (IRC) Section 125, allows employees to pay their portion of the premium for eligible employer sponsored benefits -such as health, dental, vision, and health savings account (HSA) contributions – with pre-tax dollars rather than after tax dollars! Using the pre-tax application of contributions saves the employee and employer money! Both have reductions of the FICA and Medicare contributions and the employee saves with less income tax deduction!
TCO provides professional POP document preparation, annual updates, and annual testing.
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