Section 125 Document And IRS Section 125 Plan

Tax Free Premiums offers an automated, convenient, low cost, and 100% compliant IRS Section 125 Premium Only Plans for you and your employees.

What is the difference between a full blown Section 125 Plan and a Section 125 Premium Only Plan?

A premium only plan contains limited language of the section 125 plan document that only allows for eligible benefit premiums and HSA (health savings account) contributions to be withdrawn from payroll on a pre-tax basis.

A full irs section 125 plan allows for FSA (Flexible Spending Accounts) and dependent child care to be deducted from payroll on a pre-tax basis for eligible out of pocket expenses, but also most commonly includes the Premium Only Plan language with the eligible benefit premiums.

How much does a Premium Only Plan cost?

Typically a plan document and necessary forms will cost anywhere from $100-$600 through an attorney or tax advisor. Many payroll providers charge set-up fees as much as $600 but once you have the document you will be required to update as new legislation is available. A Premium Only Plan will cost only $89 a year if you choose www.taxfreepremiums.com as your section 125 document provider, which includes all mandated updates.

What is included with your service?

As part of our service you are provided with:

1. The Plan Document
2. The Summary Plan Description
3. Default Enrollment Notice Forms
4. Non-discrimination Testing Software
5. Compliance Updates – Any time there is a change to the law that requires your plan document to be changed, we will update the document online and let you know when it is ready for you to download and print your updated document.

Why should I renew annually with TaxFreePremiums.com?

As laws change, your Premium Only Plan will become out of date. When the laws change it will become necessary to update your document. Instead of worrying about tracking the law yourself, let TaxFreePremiums.com do it for you. When the laws change, we will update the document and let you know to download and print the updated the document.

When do you have to do the non-discrimination testing for a Premium Only Plan?

Every year when the plan year ends is the appropriate time to do the non-discrimination testing for the Premium Only Plan.

How do I setup an account?

To setup your account today go to: taxfreepremiums.com/main/signUpCompany. You will be able to create a username and password. On the next page you will enter the billing information for the annual fee. After the billing information, you will be asked a few questions about your benefits. After the additional information you will be able to download all of your documents and a checklist that will walk you through the implementation of the Premium Only Plan.

Tax Free Premiums : Sec 125 Pop Plan

A convenience you can afford. Effortlessly void expensive penalties with the peace of mind that your section 125 plan documents will always be in compliance. Click Get Started now to enter your information, and in less than 5 minutes your section 125 compliant document will be ready to print.

Convenience

With online access 24/7, you can make updates to your POP plan documents at any time in just moments.

Timely Updates

Our access to a legal team that is constantly involved with the latest legistlative changes enables you to get timely, automated updates to your sec 125 pop plan documents.

Safe & Secure

Our site uses the latest in Internet security to protect your sensitive company information.

Cost Effectiveness

While most companies have yearly document fees and charge per ammendment, our low annual fee includes all amendments and critical updates to your documents.

Avoid Expensive Penalties

With timely updates made automatically to your documents and immediate online access, we make it easy to stay in compliance with IRS section 125 pop in the event of an audit.

FREQUENTLY ASKED QUESTIONS

What is the difference between a full blown Section 125 Plan and a Section 125 Premium Only Plan?

A premium only plan contains limited language of the Section 125 Plan that only allows for eligible benefit premiums and HSA (health savings account) contributions to be withdrawn from payroll on a pre-tax basis.

A full Section 125 Cafeteria Plan allows for FSA (Flexible Spending Accounts) and dependent child care to be deducted from payroll on a pre-tax basis for eligible out of pocket expenses, but also most commonly includes the Premium Only Plan language with the eligible benefit premiums.

How much does a Premium Only Plan cost?

Typically a plan document and necessary forms will cost anywhere from $100-$600 through an attorney or tax advisor. Many payroll providers charge set-up fees as much as $600 but once you have the document you will be required to update as new legislation is available. A Premium Only Plan will cost only $89 a year if you choose www.taxfreepremiums.com as your document provider, which includes all mandated updates.

Section 125 Plan By Tax Free Premiums

Tax Free Premiums offers an automated, convenient, low cost, and 100% compliant IRS Section 125 Premium Only Plans for you and your employees.

A POP section 125 plan is an effective way to save on tax expenditures for employers and employees. Whether you have one employee or a thousand of them, Premium Only Plans can help companies achieve significant tax savings without reducing salaries and employee benefits.

Sad to say, however, Section 125 POP plans remain undervalued and underutilized by most companies. Why is that? It is hard to imagine why a tax saving measure designed by the federal government to help increase the average employee earnings and provide companies a way to add to the operational funds could be met with lukewarm response said.

The truth is that not many people know about irs section 125 plan and the many benefits that can be had to implement it. Apart from the limited information on POP plans, there is also the idea that these plans are difficult to implement and even harder to stay in compliance.

Contrary to popular belief, however, an employer must not jump hoops to sponsor a Section 125 POP. In fact, there are a lot of service companies these days that offer the full set of Section 125 plan documents and compliance requirements for a very reasonable price. With the right provided information, documents can be prepared in a matter of days, even minutes!

The 125 Premium Plan Document Basic Documents section also known as COP or Cafeteria Plan is available for only $ 99 No matter what name goes, which is an essential part of any group health insurance or employer-sponsored fringe benefit program.

Internal Revenue Code Section 125 allows employees to purchase health insurance and other ancillary benefits tax free. A Section 125 Plan legally allows its employees to use pre-tax or tax-free dollars to pay its share of health insurance premiums and other ancillary benefits premiums.