| Tip Pre-Tax
Premium Plans
A Premium Only Plan is a Section 125 plan that allows your employees
to pay their share of the medical or dental premium with pre-tax dollars.
This means, with a Premium Only Plan, your employees’ insurance
payments are taken out of their paycheck before Federal, State, and Social
Security (7.65%) is deducted. Their taxable income is reduced, which
means more take-home pay.
As an employer, you also save on the Social Security deduction – which
in many cases pays for the cost to implement the Premium Only Plan. |
