Section 125 Series
Premium only plans or POPs allows employees to pay their portion of insurance premiums with pre-tax dollars. With a POP plan, employees have the option of choosing an amount of pre-tax salary that will be withheld from their wages for insurance premiums. Depending on the amount they elect, employees can save up to up to 40% on their payroll deductions due to savings on Medicare, Social Security and unemployment taxes (depending on the state).
Flexible spending accounts or FSAs can save employees money on qualified medical expenses, and reduces taxable wages for both the employer and employees!
Curious about Section 125 programs? Be on the lookout for our upcoming posts coving the basics of Premium Only Plans (POP), Health Savings Accounts (HSA), Flexible Spending Accounts (FSA), and Health Reimbursement Arrangements (HRA).
Health savings accounts or HSAs are a great way to save money and efficiently pay for medical expenses. HSAs are tax-advantaged savings accounts that accompany high deductible health plans.
Health reimbursement arrangements or HRAs are a 100% employer funded reimbursement program that helps employees cover certain medical costs as a way to supplement of replace group coverage. The employer only pays when expenses occur, and the employees receive tax-free reimbursements for their qualified expenses!