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.
