Premium-Only Plans

Premium-Only Plans

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.

Premium-Only Plans

TPS Group offers customized Premium Only Plans (POP) for small businesses in Connecticut & 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 CT

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
  • More Take-Home Pay
  • Happier Employees
  • Easy Set-Up

Who can sponsor a Premium Only 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:

Related to: HR Consultant, HR Consulting Firm, Payroll Provider, Payroll Processing

Reviews

Highly impressed with their level of expertise and outstanding customer service.

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"

"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"

"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"

"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

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

Very Responsive And Clear To Requests And Questions

Our service representative, Carol, is outstanding and very responsive and clear to requests and questions. Very professional yet pleasant.

- Jane Surmecewicz

They are a pleasure to work with and we highly recommend their services.

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

TPS filled in the gaps within our small HR department

Working with Kim and her talented team helped us fill in the gaps within our small HR department. I strongly recommend TPS for HR tasks that don’t warrant hiring a full-time team. Thanks again Kim!

- Jake F

Knowledge and Expertise

Excellent customer service can be hard to find, but not with TPS Group! I know when I do business with Phil Coco, I can expect a quick response. I rely on his knowledge and expertise, and highly recommend TPS Group for their pension services.

- Mark Catullo

Dependable, experienced, and professional

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

Contact us about Premium-Only Plans

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