Premium Only Plans (POP Kits)

What is a POP Kit?

It is a Flexible Benefit Program that enables employers to allow their employees to pay their share of health premiums with pre-tax dollars. Pop plans are often referred to as premium only cafeteria plans.

What types of health premiums may be put in a POP Plan?

  • Medical
  • Dental
  • Cancer
  • Group Term Life
  • A D & D (Accidental, Death & Dismemberment)
  • Disability (If premium is taken pre-tax, benefit is taxable)

Who needs a POP Plan?

  • Employers who want to do cost shifting because of rising health cost
  • Employers who want to save on payroll taxes
  • Employers who want to give their employees a benefit that will save them taxes

Who may not participate in a POP Plan?

  • Partners in a partnership
  • 2% Shareholders in a sub chapter s corporation, including relatives through the attribution rules, such as a spouse, child or parent
  • Sole Proprietors
  • Partners or Proprietors in a LLC or PLLC treated as a partnership or proprietorship

What services are required for a POP Plan?

  • Written Plan Document & Summary
  • Plan Description
  • Annual Discrimination Testing
  • Enrollment Forms
  • Federal Updates
  • Annual 5500 (Tax Return), when applicable
  • Annual 5500 (Tax Return), when applicable