What is POP and do I need it?

PrimePay Payroll Tax & HR

Premium only plans (POP), also referred to as Section 125 Plans, are part of the IRS Section 125 code that helps make benefit programs more affordable for your employees.

In order for the consumer driven health plans that you offer to be tax deductible, you need a POP.

POP is the avenue that allows your employees to pay their consumer driven health plan premiums with tax-free dollars. Plus, employers don't have to pay FICA/FUTA taxes on the money that employees use toward their individual or group health plan premiums.

Great news is, when you choose a pre-tax health plan with PrimePay, POP will automatically be included. Our goal is simplify the benefits process for you – and this is just one way we do it!