As a cost-saving and effective healthcare strategy, POP (or Prescription Ointment Program) has gained a lot of popularity. Their popularity has increased and the IRS has been referred to by the Federal and state legislatures to provide POP to help increase affordability for sponsored healthcare.
At present, at least four states require tax-free premium-only plan compliance services to be used by businesses that sponsor health care. Private small and large companies can subscribe to a premium-only plan at their own discretion, saving tax on employee premium contributions.
Employers of all levels of business can benefit from a premium-only plan. This brief overview will help employers in strengthening the financial stability of their sponsored health insurance programs.
A series of administrative documents are required to be completed for the initial filing procedure for IRS premium-only plans. A plan document is first and foremost. POP plans include details about employee benefits, participation policies, ordinances, election procedures, annual contribution limits, and election procedures.
Employers must provide a summary plan description to all participants in POP. The SPD (Summary Plan Description) provides details about POP plan nuances and claims filing procedures, as well as information pertinent to POP administration and sponsorship.
Employers may start deducting employee premium contributions from their regular state and Federal taxes once the premium-only plan filing procedures have been established.
It is for these reasons that it is strongly recommended that employers use a POP service provider to help them acquire premium-only plan tax-free savings.