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Premium Only Plan (Section 125) New York

The Premium Only Plan (Section 125) can help you in a number of areas. It provides employers with a way of reducing payroll taxes and helps employees with the cost of health insurance and various medical expenses, as well as the cost involved in caring for children and other dependents.

1. Local Companies

2. What Is A Premium Only Plan (Section 125)?

3. Who Can Benefit From A Premium Only Plan (Section 125)?

4. Details Of A Premium Only Plan (Section 125)

5. Featured Local Company

1 . Local Companies

EBS Benefit Solutions, Inc.
(585) 421-4400
30 Perinton Hills Mall
Fairport, NY

Liberty Mutual
(845) 471-6500 ext.53445
1110 Rt. 55
LaGrangeville, NY

Coughlin Group
(212) 593-0200
52 West 22nd Street, Suite 1
New York, NY

Atlantis Health Plans
(212) 577-4360
140 Fulton St
New York, NY

Health Care Strategies Group
(212) 417-9367
420 Lexington Ave Rm 840
New York, NY

HIP
(646) 625-2380
55 Water St Ste Conc1
New York, NY

DMAS Mortgages
(718) 981-0700
1132 Forest Ave
Staten Island, NY

Monroe County Aging Office
(585) 753-7455
111 Westfall Rd
Rochester, NY

David Noard/Vincent Van Gogh
(603) 868-0765
160 E. 25th Street
New York, NY

Arxcel Inc.
(716) 204-3393
6400 Sheridan Dr., Ste. 206
Buffalo, NY

2 . What Is A Premium Only Plan (Section 125)?

An IRS Section 125 Premium Only Plan is also often referred to as a POP Plan. This Premium Only Plan (Section 125) is of benefit to both employers and employees, in that it helps both to lower their lower income tax liabilities. In a nutshell, it makes it possible for employees to use tax-free or pre-tax income to pay medical insurance premiums. This, in turn, helps reduce payroll taxes. The Premium Only Plan (Section 125) is sometimes also known as a cafeteria plan, because it allows people to make a choice of benefits, as if selecting from a menu.

Employees who elect to make special salary deductions as part of an IRS Section 125 Premium Only Plan can make savings on their federal, state, and city income taxes. The savings in federal taxes alone can amount to as much as 40% of the pre-tax or tax-free income. With taxable income reduced, take home pay increases, putting more dollars in your pocket for you and your family to enjoy.

As well as helping employees, the IRS Section 125 Premium Only Plan also has great advantages for employers. With a Premium Only Plan (Section 125), an employer can benefit from reductions in Social Security in Medicare taxes. There may be savings on federal unemployment taxes in a number of states.

3 . Who Can Benefit From A Premium Only Plan (Section 125)?

There are many people who can participate in a Premium Only Plan (Section 125). If you are employed by a corporation, an S corporation, a partnership, a not-for-profit organization, a limited liability company, a sole proprietorship, or a professional corporation, you can benefit from an IRS Section 125 Premium Only Plan. Even when a sole proprietor, a member of a limited liability company, a partner, or a person who owns more than 2% of an S corporation is not eligible to participate actively in a Premium Only Plan (Section 125), the owners of such businesses are still allowed to sponsor the IRS Section 125 Premium Only Plan for their employees, thus earning valuable savings on payroll taxes.

People who already have an IRS Section 125 Premium Only Plan in place can make the most of the plan and its pre-tax benefits. In fact, if you want as many tax-free dollars as possible in your pocket, it would be to your advantage to update your Premium Only Plan (Section 125). If the plan is five years old or more, you should make it a priority to do this, so you can be sure the provisions of your IRS Section 125 Premium Only Plan are keeping pace with any changes that have taken place in the IRS Code in the past few years.

4 . Details Of A Premium Only Plan (Section 125)

The pre-tax contributions that employees can make to group insurance programs, as part of a Premium Only Plan (Section 125), ensure they will be able to take home a bigger paycheck on a permanent basis. This is because you will reduce your taxable income when you participate in an IRS Section 125 Premium Only Plan. As well as adding tax-free dollars to your income, a Premium Only Plan (Section 125) also makes a difference to payroll taxes, a consideration that employers should find well worth considering.

There are a number of eligible programs associated with an IRS Section 125 Premium Only Plan. As well as health programs, they include vision and dental insurance, as well as disability insurance. Group term life insurance, up to a total of $50,000 per policy, is also among the insurance programs to which an employee can contribute through a Premium Only Plan (Section 125) and through which you can gain pre-tax benefits. The tax-free savings gained through an IRS Section 125 Premium Only Plan, including savings on federal, state, and social security taxes, can make your life easier by providing you and your family with more ready cash. Employers also benefit from a Premium Only Plan (Section 125) because they save money on payroll taxes.

5 . Featured Local Company

EBS Benefit Solutions, Inc.

(585) 421-4400
30 Perinton Hills Mall
Fairport, NY

Read more about Premium Only Plan (Section 125)

- Flexible Spending Accounts (Section 125) New York

In the United States, employees can have flexible spending accounts set up through their employers. Under Section 125, as an employee, you can take advantage of a cafeteria plan to have a portion of your earnings set aside to help pay for expenses.

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