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Professional Employer Organization

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so you can focus on managing your business.

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Premium Only Plan

A Premium Only Plan (POP) is a simple way for employees to reduce some of their health insurance costs while maximizing their tax savings potential. With a POP, employees pay a portion of their insurance premiums on a pre-tax basis, which reduces their taxable income and helps them save on FICA, federal, and (where applicable) state and local taxes as well. A POP also provides tax savings for employers by helping to reduce your payroll taxes.

Let Paychex Business Solutions (PBS) help you establish and administer a POP, so you and your employees can start enjoying the benefits.

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Tax Savings

With a POP, employees' premium contributions are automatically deducted from their salaries on a pretax basis. This results in significant tax savings for you and your employees.

Taxable income is reduced by the amount contributed, so employees pay less in taxes.
With employee pretax income lowered, your company pays less in social security (FICA) payroll taxes.*

* For applicable state legislation, consult your tax advisor.

Employee Retention

The tax benefits of a POP are a powerful incentive that can help you retain your most valued employees.

Automatic Payroll Deductions

We can integrate a POP with your payroll to automate employees' pretax deductions.

Comprehensive Services And Easy Recordkeeping

PBS not only establishes your POP, we help you manage it. We provide legal documentation, compliance testing, and regular status reports to keep employees' accounts running smoothly.

Enhance your Employee Benefits

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Health Insurance

PBS offers services to help you choose an appropriate health insurance plan for your company, with support through Paychex' relationships with national and regional carriers. Learn More.

Flexible Spending Account (FSA)

Our FSA includes a POP. Beyond premium payments, an FSA helps employees pay out-of-pocket medical, dental, and dependent care expenses while decreasing your company's payroll taxes. Learn More.

For more information about our products and services, please contact a Paychex representative at 800-322-7292, Monday through Friday from 8:00 a.m. to 8:00 p.m. ET. Or, complete our online form for a no-obligation quote.

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