Premium Only Plan (POP)
The Premium Only Plan is an IRS approved tax-savings plan for groups where employees share in the cost of benefits through payroll deduction. Employees save $25 to $40 on every $100 they contribute through payroll deduction because their contributions are deducted from pay before taxes are taken out.
Qualified contributions include an employee's share of employer-sponsored health, dental, disability, accident, and group-term life insurance. An employee's share of contributions to a Health Savings Account (HSA) will also qualify for tax savings when paid through payroll deduction.
Employers also save about 8% (the FICA payroll tax match) on every dollar employees contribute through payroll deduction.