Premium Only Plans are the first level of Section 125 allowing insurance premiums including health, dental and vision. These deductions are taken before taxes, therefore, reducing your taxable income.
The employers tax expense is also reduced. Employers are required to match FICA taxes on each employees paycheck up to a taxable base limit. Premium Only Plans eliminate this tax liability on the wages that are deducted as premiums on the employee's paycheck. Workers' Compensation costs are also reduced.
That is why this is refered to as a " Win/Win Benefit".
View the Premium Only Plan savings example. This document requires Adobe Acrobat Reader to view. If you do not have this plug-in, click here to download.
For more information, contact plan administrator Sheakley Pension Administration, Inc. Flexible Benefits Division 1-800-877-6630 email: 125@sheakley.com
Increase Your Employees' Take-Home Pay and Reduce Your Employer Taxes.
