A tax-free way to help employees pay for health insurance premiums.
A Premium Only Plan, or Section 125 Plan, allows benefit premium payments to be paid on a pre-tax basis. POP plan documents help employers and employees save hundreds of dollars in taxes every year.
At Clarity, we offer two kinds of POP administration—Basic and Advanced. Basic administration does not include nondiscrimination testing. Advanced administration includes full nondiscrimination testing, which we provide on an annual basis. No matter which path you choose, we make Premium Only Plan administration straightforward
HOW IT WORKS
Employees make contributions to their group health, dental, and term life insurance before taxes are calculated, enabling them to save FICA and federal income tax on their insurance deductions with every paycheck. Employers save on FICA taxes.
With Clarity Premium Only Plans (POP), employees and employers keep more money.
Employees save about 30% on their insurance premiums and employers realize FICA tax savings of 7.65%.
- Employees take home an extra $1,500 annually on average.
- Employers save between $500 and $2,500 per employee on average.
A DEDICATED SPECIALIST
We offer our clients one point of contact because we believe a familiar voice is important in this business. So from day one, you have the support of a dedicated specialist who can answer questions and guide you through choices and implementation options so you can make the best decision for your company.
FLEXIBLE + FULL SERVICE
With Clarity by your side, you have a true partner that can adapt to your business—and do it with a smile. When you work with us, you get a full-service benefits administration and technology provider, which means you’ll lay a solid foundation for today and prepare for education, compliance, and cost challenges you may face tomorrow.