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.