POP

A Premium Only Plan

Cut the Cost of Payroll Taxes with a Section 125 premium Only Plan.

A Premium Only Plan (POP) lets you cut payroll taxes without cutting your payroll. A Section 125 Premium Only Plan (POP) saves you and your employee’s money by reducing payroll taxes. It works by making one simple adjustment in your payroll process. Employees pay their portion of insurance premiums on a pre-tax basis rather than on an after-tax basis.

The Premium Only Plan reduces your taxable payroll by reducing your employee’s taxable income. So both you and your employees pay less in taxes.

Relieve the Pressure of Rising Health Care Costs

Let’s face it, with the rising cost of providing health care to your employees, it seems that the only ones who are benefiting are the large health care organizations. FW Serra offers you a solution where everyone wins. We can help you reduce the amount you pay in payroll taxes and, at the same time, increase your employees’ take home pay! That solution is FW Serra.

FW Serra can generate FICA savings for employers and can increase their employees’ spendable income through the use of Premium Only Plan (POP).

Internal Revenue Code Section 125 allows employees to sect certain benefits normally paid on an after-tax basis and instead, pays for them pre-tax.

With a POP, the contributions an employee makes for insurance premiums for health, dental, disability and group term life insurance programs can be paid for pre-tax. The net results are that the employee saves at least 22% in Federal and FICA taxes.

When employees pay for theses benefits pre-tax, it allows them to increase their spendable income while giving their employer substantial FICA tax savings. In fact, it could save your company thousands of dollars in payroll taxes a year depending on the size of your company! It may even cover the total cost of processing your payroll!

You are asking your employees to pay more in premiums and the benefits they receive cover less. Why not give your employees a tool to help them manage this increase in cost?