The Pension Service
TPS 3(16) Service
Payright Payroll Affiliates
Benefits Plus
TPS Group Medical
- TPS Group
- Areas Served
- Westbrook, ME
- Benefits Plus
- Premium-Only Plans
Premium-Only Plans in Westbrook, ME
POP plans are limited scope Section 125 plans that allow employers to pay health insurance premiums without FICA taxation. Employees also save by paying their portion of health insurance premiums with pre-tax income.
TPS Group offers customized Premium Only Plans (POP) for small businesses in Westbrook, ME & surrounding states. If you’re a small business looking to save on taxes, a POP could be the perfect fit. Section 125 of the IRS code allows small businesses to make a simple change to the company’s payroll process that reduces employees’ taxable payroll. Every employees’ premium contribution through a premium only plan can be deducted from the overall taxable payroll amount.
What is a Premium Only Plan?
When combined with group health insurance, POPs pay a portion of employees’ insurance premiums on a pre-tax basis, which reduces their taxable income. As a result, a Premium Only plan reduces the income amount used to determine your payroll taxes as well. A POP offers a win-win situation for employers and employees alike.
Benefits of POPs in Westbrook, ME
The Premium Only Plan is the building block of the Section 125 Plan. It allows for certain employee-paid group insurance premiums to be paid with pre-tax dollars. A few benefits of POPs are:
- Lower Employer Taxes
- Lower Employee Taxes
- Easy set-up
- Happier Employees
- More Take-Home Pay
Who can sponsor a POP Plan?
Any employer can sponsor a Premium Only Plan. Regular corporations, partnerships, S corporations, limited liability companies (LLCs), sole proprietors, profession corporations, and not-for-profits can all save money on payroll taxes by establishing a Premium Only Plan. While regulations prohibit a sole proprietor, partner, members of an LLC (in most cases), or individuals owning more than 2% of an S corporation from participating in the POP, they may still sponsor a plan and benefit from the savings on payroll taxes.
If you’re interested in POPs, you may also be interested in:
- Flexible Spending Accounts in Westbrook, ME
- Group Health Insurance in Westbrook, ME
- Health Reimbursement Accounts in Westbrook, ME
- Section 125 Cafeteria Plans in Westbrook, ME
Related to: Payroll Provider in Westbrook, ME, Payroll Processing in Westbrook, ME
Further Reading: Premium-Only Plans
Resources
Internal Revenue Service (IRS)
- Federal tax laws, rules and forms
- Businesses and individuals
- Independent contractor rules for IRS
U.S. Department of Labor (DOL)
- Federal wage and hour law
- Exempt and non-exempt employee status
- Compliance assistance
- Independent contractor rules for DOL
Employee Benefits Security Administration
Benefit plan compliance and assistance (health and retirement) COBRA HIPPA
Affordable Care Act Information and Health Insurance Marketplace
U.S. Bureau of Labor Statistics (BLS)
Labor statistics & wage data
Reviews
We look forward to working with TPS Group next year
As another year ends, I want to express my sincere gratitude and appreciation to you and TPS Group for assigning us Krista Blier. Krista provides exceptional customer service and has been a major asset to me and Lynch, Traub, Keefe & Errante, P.C. She is extremely knowledgeable and always accessible. Always on top of the RMD’s, giving me an explanation on form 5500-SF to present to Mr. Keefe & keeping us updated with any account changes as well as specifics. It is a relief knowing I have full faith in Krista and can turn a blind eye to our account. I cannot tell you how many vendors/brokers I have to stay on top of and babysit to make sure our deadlines are met and to perform their job duties. Krista is a pleasure to work with and we look forward to working with her and TPS Group next year.
- Michael Panela
Highly impressed with their level of expertise and outstanding customer service.
I highly recommend TPS Group and their quality third-party administration for our 403(b) plan. During our long relationship with TPS Group, we have never failed to be impressed with their level of expertise and outstanding customer service. They keep their promises and it’s easy to work with them. Having our own rep Lauren McNabb is a plus!
- Don Senecal
"Extremely Helpful to Our Business"
Malinda deserves special recognition. She is prompt, courteous, and professional. We find her to be extremely helpful to our business.
- Angela Simino
"Wonderful To Work With"
My go to professional is Des. A wonderful person to work with. We can count on him to handle all of our needs.
- Andrea Blakeslee
"Answers All Of My Questions In A Clear Manner"
Our case administrator, Susan, has been absolutely wonderful and is a joy to work with. She is very knowledgeable, patient, answers all of my questions in a clear manner, and is professional.
- Kathy Townsend
Extremely Valuable to Myself and Our Company
Kathleen has helped me gather info and understand text so many times and is extremely valuable to myself and our company.
- Elizabeth Robison
They are a pleasure to work with and we highly recommend their services.
For many years we’ve relied on TPS Group’s extensive knowledge and industry expertise to keep us in compliance with state and federal regulations as well as changes in the law. Their attention to detail is just what we need to keep our business operations running smoothly. They are a pleasure to work with and we highly recommend their services.
- Dan Neal
Dependable, experienced, and professional
Dependable, experienced, and professional, our TPS Group recruiter was an invaluable resource, helping us locate and vet quality talent.
- Tyler R. Vunk
