Premium Only Plans
Premium Only Plans (POP) are a win-win for both you and your employees:
- Employees make contributions on a pre-tax basis, which lowers their taxable income and makes participation in the group benefits plan more affordable, with typical savings of 25% to 40%, depending on the employee's tax bracket
- As an employer, you can benefit by saving nearly 8% on matching Social Security (FICA) and federal unemployment tax contributions.
Here's how the annual savings works for you as an employer:
| Without POP | With POP | |
|---|---|---|
| Weekly Pay | $1000 | $1000 |
| Medical Deduction | $100 | $100 |
| FICA Tax | $76.50 | $68.85 |
Annual savings for employer in taxes on one employee: $405.60
With a POP plan through PayChoice, you can reduce your tax liability, offer employees more affordable coverage, retain key staff members and take advantage of convenient, low-cost plan set up. Contact PayChoice now to learn more about POP options.
