Employees can pay premiums with pre-tax dollars
IRS Section 125 allows employees to pay their portion of certain employee benefit premiums using pre-tax dollars. PaySphere can help construct a plan—known as a premium only plan (POP)—which allows employees to do use pre-tax dollars to pay some of their employee benefit premiums. Also known as a cafeteria plan, a POP is a separate written plan maintained by an employer for employees who meet specific requirements and regulations of the IRS Section 125. A qualified benefit is a benefit that does not defer compensation and is excludable from an employee’s gross income.
Typical Group Employee Benefits that qualify include:
Dental and Vision
Group Term Life Insurance