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Premium Only Plan Employer Brochure

Our Premium Only Plan saves you and your employees tax dollars by allowing employees to pay for their portion of employer-provided health and/or dental plans with pre-tax dollars. By using pre-tax dollars, employees will see their take-home pay increase. You save too, since your taxable payroll decreases. This is an Internal Revenue Code (IRC) Section 125 plan.

Employer savings example

  With Further® Without Further®
Annual payroll (30 employees x $40,000) $1,200,000 $1,200,000
Employee POP contribution (30 employees x $150 x 12 months) $54,000 $0
Net payroll subject to payroll expense $1,146,000 $1,200,000
7.65% payroll expense (FICA) $87,669 $91,800
Payroll expense savings $4,131 None

This company saved $4,131 in annual payroll expense with the Premium Only Plan. The company had 30 employees with an average annual compensation of $40,000. Each employee contributed $150 per month toward the medical premium. 

Benefits of the plan

  • Easy to implement and administer
  • Saves tax dollars
  • Can be used with any group health or dental plan
  • No risk of loss
  • Helps ease employee cost sharing

Tax savings without a big administrative cost

Further® can help get you started. Our services include:

  • Providing plan document and Summary Plan Description drafts
  • Performing IRS nondiscrimination testing
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