Example of POP Employee savings

John Doe: Single, no exemptions

Without POP

With POP

Annual salary

$  30,000

$  30,000

Pre-tax health plan contributions

0

-2,400

Taxable income

30,000

27,600

Estimated taxes (28.65%)

-9,195

-8,460

After-tax health plan contributions

-2,400

0

Net take-home pay

18,405

19,140

Increase in take-home pay

$         0

$   735

Annual health plan contributions by employee are based on a monthly premium of $200.

Estimated taxes (28.65%) based on an average 20% federal, 5.65% FICA and 3% state
tax rates (where applicable).

Note: Social Security benefits at retirement could be affected.

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