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AmeriFlex PresentsAmeriFlex Presents
Your POP Plan: A Guided TourYour POP Plan: A Guided Tour
Outline of PresentationOutline of Presentation
►What is a POP Plan?What is a POP Plan?►How do you start a POP plan?How do you start a POP plan?►The Plan DocumentsThe Plan Documents►Enrollment ProceduresEnrollment Procedures►Payroll AdjustmentsPayroll Adjustments
What is a POP Plan?What is a POP Plan?
►““POP” = Premium-Only PlanPOP” = Premium-Only Plan Insurance premiums onlyInsurance premiums only Employee share of the pieEmployee share of the pie Example: 80%/20% arrangementExample: 80%/20% arrangement
►80% of premium from employer80% of premium from employer►20% from employee through the POP plan20% from employee through the POP plan
►““Pre-tax” = not counted for Pre-tax” = not counted for purposes of calculating taxable purposes of calculating taxable incomeincome Example: $30,000 salary - $3,000 pre-Example: $30,000 salary - $3,000 pre-
tax = $27,000 of taxable incometax = $27,000 of taxable income Also means no “payroll tax” (“FICA”)Also means no “payroll tax” (“FICA”)
What is a POP Plan?What is a POP Plan?
►For different types of insurance For different types of insurance productsproducts HealthHealth DentalDental VisionVision AccidentAccident LifeLife DisabilityDisability
The Plan DocumentsThe Plan Documents
►Two important documentsTwo important documents The Plan DocumentThe Plan Document
►The plan’s “rulebook”The plan’s “rulebook”►LegaleseLegalese►Guided tour in a separate presentationGuided tour in a separate presentation
The Summary Plan Description (SPD)The Summary Plan Description (SPD)►The explanation of the rulesThe explanation of the rules►Plain languagePlain language►Guided tour in a separate presentationGuided tour in a separate presentation
NotNot optional optional
Enrollment ProceduresEnrollment Procedures
►Annual “Open Enrollment”Annual “Open Enrollment” All eligible employeesAll eligible employees Choice of optionsChoice of options Make electionsMake elections
►NOTE: They are electing not just the NOTE: They are electing not just the benefit, but the salary reductionbenefit, but the salary reduction
►Mid-Year Election Changes & Mid-Year Election Changes & EnrollmentsEnrollments
Payroll ProceduresPayroll Procedures
► In-HouseIn-House Make sure that person/office in charge Make sure that person/office in charge
has the correct informationhas the correct information Double-check the payroll runs for the Double-check the payroll runs for the
first couple of pay cyclesfirst couple of pay cycles Mistakes can be time-consuming to Mistakes can be time-consuming to
correctcorrect►OutsourcedOutsourced
Experienced payroll services Experienced payroll services understand how salary reductions workunderstand how salary reductions work
Make sure you provide the correct Make sure you provide the correct information to theminformation to them
ConclusionConclusion