Premium Only Plan
As a feature of Paychex Premier® Human Resources, 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. With a POP, 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, your employees' premium contributions are automatically deducted from their salaries on a pretax basis, resulting in significant tax savings for you and your employees.
- 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 you retain your most valued employees.
We can integrate a POP with Paychex payroll to automate your employees' pretax deductions.
Paychex Premier helps establish and administer your 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 payroll taxes. Learn More.
Section 125 White Paper
"POPs, FSAs, HSAs, and HRAs: Understanding Your Options When Helping Employees Pay for Health Care"
Download our FREE white paper for information on a number of employer-provided benefits to help employees cover health care expenses.
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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