Section 125/Premium Only Plan

The Payroll Source provides a way for you and your employees to enjoy various tax savings. A premium only plan (POP) allows employees to make contributions to their group health, dental, and term life insurance 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 employee medical deductions. We can assist you with the administration and plan requirements in order for you to save time and money.