POP Compliance

When companies participate in a Section 125 Premium Only Plan (Bancover's Shared Benefits Plan™), they reduce payroll taxes and Workers' Compensation costs. Plus, they increase their employees' net income.

How Does a POP Work

A Premium Only Plan (POP) gives employees the option to pay their portion of insurance premium and contribute to a Health Savings Account (HSA) on a pre-tax basis. The pre-tax contributions reduce an employee's gross wages by the amount contributed which also lowers their federal, state, and social security taxes, thus increasing their take-home pay.
 

Employer Benefits

  without SBP with SBP
Annual Payroll $250,000 $250,000
Less Employee Contributions $0 $16,000
Taxable Payroll $250,000 $234,000
Estimated FICA & Work Comp Costs $25,000 $23,400
Potential Savings $0 $1,600
Employers savings are approximate. The actual amount may vary depending on the employees' benefit and HSA contributions and Workers' Compensation rates.

 

Employee Benefits

  without SBP with SBP
Employee Income $40,000 $40,000
Less Health Premium (pre-tax) $0 $2,400
Taxable Payroll $40,000 $37,600
Estimated Federal, State, Social Security $10,800 $10,152
Income after Taxes $29,200 $27,448
Less Health Premium (post-tax) $2,400 $0
Take Home Pay $26,800 $27,448
Increase in Take Home Pay $0 $648
Tax reduction savings are approximate. The actual amount may vary depending on the employee's specific tax requirements, including contributions to an HSA are taxable income in California.

The Shared Benefits Plan™ can save employers and employees hundreds, even thousands of dollars a year! By implementing the Shared Benefits Plan™, you are reducing every participant's out-of-pocket costs. Best of all, it doesn't cost employees anything to participate.

How Does a Group Obtain a POP?

Call 888.294.0651, use the Shared Benefits Plan™ forms provided below or visit www.bancover.com. The plan is only $150 per year, which includes an annual review of plan documents to ensure they remain current with legislative requirements.

A $50 annual commission is available to the referring broker or it may be waived to reduce the annual fee. Not only that, the Share Benefit Plan™ is free for the first year for any Beere&Purves client (commission is not available when the plan is free). See BrokerPicks for more information.

 

 

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