Why do I need a Premium Only Plan?

Employees may be required to contribute towards the premium cost of their company benefits such as:

• Health Insurance
• Dental Vision
• Group Term Life (Up to first $50,000 of benefit)
• Disability
• Cancer
• Accident
• Supplemental Health

Contributions are taken after payroll taxes are calculated, leaving employees taxed on these payments.

Employers also must pay all applicable payroll taxes associated with any wages paid to the employees, including premium payments.

You need a Premium Only Plan to keep pace with your competition and implement programs that will reduce your total cost of providing benefits.

Solution

Internal Revenue Code Section 125 allows you, the employer, to establish a written plan that would permit your employees to have their payments taken from each paycheck on a pre-tax basis. The contributions are exempt from Federal, FICA, and State taxes. The election is normally voluntary on the employee's part and if chosen, would immediately increase the employee's net or take home pay.

You, the employer, are now also exempt from any matching FICA taxes on the employee contributions as well. This benefit increases your employees’ take home pay while decreasing the employer's overall payroll costs!!!

• Annual Savings to the Employee is $ 756 !!!
• Annual Savings to the Employer is $ 206 !!!

THESE SAVINGS REPRESENT ONE EMPLOYEE!!

A PREMIUM ONLY PLAN IS A WIN-WIN FOR BOTH THE EMPLOYER AND EMPLOYEE!!

The P & A Premium Only Package

• Installation
  • Customized Enrollment Forms (if required)
  • Customized Plan Document
  • Preparation of Summary Plan Description
• Annual Administration
  • "800" Line for Customer Service Support

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