Premium Only Plans (POPs)

Help employees save on federal income taxes and health insurance costs while you save on FICA and FUTA payroll taxes with a Paychex Premium Only Plan (POP).

What Is a Premium Only Plan?

In combination with group health insurance, POP plans pay a portion of employees’ 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 a result, a POP reduces the income amount used to determine your payroll taxes as well.

The Paychex POP

Paychex can help you establish and manage your POP by providing legal documentation, compliance testing, and regular status reports to keep your employees' accounts running smoothly. If you have questions, just call our toll-free support line and our POP experts will be glad to answer them for you.

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