Section 125/Premium Only Plan

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The Payroll Source provides a way for you and your employees to enjoy various tax savings. A premium only plan (POP) allows employees to pay premiums for their group health, dental and vision insurance and other eligible voluntary benefits before taxes are calculated. Under section 125 of the Internal Revenue Code, employees save FICA and federal income tax on their insurance deductions with every paycheck. The Payroll Source can show how employers can save too, showing how eligible businesses do not pay FICA matches or FUTA tax on qualified employee payroll deductions. We can assist you with the administration and plan requirements in order for you to save time and money.