Apr 27, 2019
by Tiffany Gorrell
Taxes. Did that word give you a little shudder? Maybe you cringed a little when you read it. The word on its own tends to bring about a strong, visceral reaction in most people. But what if you thought about the combined words, lower taxes? Likely also a visceral reaction, but a much more pleasant one.
A Premium Only Plan (POP) is an easy, inexpensive way to lower taxes for both employers and employees. It allows insurance premiums to be paid on a pre-tax basis. For employees, this lowers their taxable income, and therefore their tax bracket which could save them at the end of the year. For employers, it reduces the amount of FICA (Federal Insurance Contributions Act), FUCA (Federal Unemployment Tax Act) and state taxes.
With the cost of a POP plan coming in at under $150, on average (for a basic POP plan), and renewal only once every 5-10 years, it’s a great way to build on a benefits package that is attractive, both to the employer and to the employees.
Contact your local LISI Sales Representative today to learn more about POP and other pre-tax plans.
