Premium Only Plan
A Premium Only Plan (POP) is a simple way for employees to reduce some of their health insurance costs while maximizing their tax savings potential. Paychex Premier® Human Resources can help you establish and administer a POP so employees can pay a portion of their insurance premiums on a pre-tax basis; reduce their taxable income; and save on FICA, federal, and (where applicable) state and local taxes as well.
A POP also provides your company with tax savings by helping to reduce payroll taxes.
With a POP, employees' premium contributions are automatically deducted from their salaries on a pretax basis, resulting in significant tax savings for employees and your company.
- Employees' taxable income is reduced by the amount contributed.
- With employee pretax income lowered, you pay less in social security (FICA) payroll taxes.*
* For applicable state legislation, consult your tax advisor.
The tax benefits of a POP are a powerful incentive that can help your company retain its most valued employees.
We can integrate a POP with Paychex payroll to automate your employees' pretax deductions.
Paychex Premier helps establish and administer your company's POP. We also provide legal documentation, compliance testing, and regular status reports to keep employees’ accounts running smoothly.
Enhance Your Employee Benefits
Paychex can help you select an appropriate health insurance plan for your company's needs. Once your plan is in place, we help simplify ongoing administration by integrating the plan with your Paychex payroll information. Learn More.
When you sign up for Paychex Premier, it includes an FSA plan to help your employees pay out-of-pocket medical, dental, and dependent care expenses, and decrease your company's payroll taxes. Learn More.
For more information about our products and services, please contact a Paychex representative at 800-322-7292, Monday through Friday from 8:00 a.m. to 8:00 p.m. ET. Or, complete our online form for a no-obligation quote.
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