Premium Only Plan
Section 125 Application

Here's another great benefit of Chamber membership. The Chamber's Premium Only Plan can save you and your employees money. Here's how:

The Premium Only Plan lets you cut payroll taxes without cutting your payroll

The Section 125 Premium Only Plan (POP) saves you and your employees money by reducing payroll taxes. It works by making one simple adjustment in your payroll process: Employees pay their portion of insurance premiums on a pre-tax basis rather than an after-tax-basis.

The Premium Only Plan reduces your taxable payroll by reducing your employees' taxable income. So both you and your employees pay less in taxes.

One of the best tax savings allowed by the IRS

IRS-sanctioned Premium Only Plans were created by the Revenue Act of 1978 and are governed by Internal Revenue Code Section 125.

• Employees don't pay FICA, federal or, where applicable, state or local taxes on money used to pay for their portion of employer-sponsored insurance premiums.
• Employees' tax savings help to defray the cost of insurance premiums.
• Employees can increase their take-home pay.
• The Premium Only Plan reduces your taxable payroll by the total amount of employer contributions for benefits. Low taxable payroll means lower payroll taxes.
• You can allow employees to realize an increase in pay and take credit for a terrific new benefit, while still saving money.
• You can increase your employees' share of insurance premiums without negatively affecting their take-home pay.
• If you are not requiring employees to contribute to the cost of their insurance, this Section 125 Premium Only Plan allows you to do so with the lease impact on employees salaries.

The suggested retail price: $630 Per Kit, special price through Greater Kansas City Chamber: $430 Per Kit.

For questions call: Mayer Hoffman McCann L.C. (816) 968-1250