POP documents
If employees pay their share of health premiums through payroll before taxes, you need a written Section 125 Premium Only Plan. We prepare it for our clients at no cost.
Pre-tax premiums save your whole team money. We'll set it up for free.
What is a POP document?
A Premium Only Plan (POP) is the simplest form of a Section 125 cafeteria plan. It lets employees pay their share of health, dental and vision premiums with pre-tax dollars, saving both the employee and the employer payroll taxes. The IRS requires a written plan document adopted before the plan year begins, and elections can only change mid-year after a qualifying life event.
How we help
Written plan document
Required before pre-tax deductions start; without it, those deductions can be treated as taxable.
Summary for employees
A plain-language summary employees can keep.
Election rules
Elections are locked for the plan year unless there's a qualifying event, such as marriage, birth or loss of other coverage.
Nondiscrimination
Basic testing to make sure the plan doesn't favor highly compensated or key employees.
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Frequently asked questions
What does POP stand for?
Premium Only Plan, a Section 125 cafeteria plan that allows employees to pay insurance premiums with pre-tax money.
Do small employers need a POP document?
Yes, any employer that takes employee premiums out of pay pre-tax needs one, regardless of size.
Do you charge for POP documents?
No. We prepare POP documents for our benefits clients at no additional cost.
Schedule a commitment-free meeting
Tell us what's working and what isn't. We'll review your benefits or coverage and give you an honest plan, at no cost.