 | Jim Schartz
has been involved in the oil industry for over 40 years in a variety of Administrative and Management capacities for Derby Refining Co. and Coastal Mart, Inc. Currently, as owner of J & S Consultants, he works with all types of businesses in several areas, with particular emphasis in employee benefits. J & S Consultants is an independent representative for United Services Association for Health Care (USA +), providing individuals and employees (through employee benefit programs), an average savings per household of $400 per month on expenses including but not limited to medical, dental, hearing, pharmaceuticals, legal, travel, hotel, and grocery coupons. Jim can be contacted by phone at (316) 531-2684 or by e-mail jjsconsult@yahoo.com |
Business Consulting
2002-08-01 12:08:00
Premium only plans
Jim Schartz
Question: What is a Premium Conversion plan?Answer: Also known as a Premium Only plan, or a POP, a premium conversion plan is a type of Section 125 plan where the only benefits accorded the pre-tax treatment are the employees contributions toward health life, dental, vision care, prescription drugs and disability, although the wisdom of including this last type is debatable. A Premium Only Plan (POP) is one of the easiest cost savings measures to implement. The employees do not pay federal income tax or FICA taxes on their contributory share of the premiums, and some states also exempt the contributions from state income tax. The employer gains increased employee awareness and appreciation of the benefits portion of their compensation package, is excused from matching FICA taxes and state and federal unemployment taxes, and is not required to take on significant additional costs or burdensome procedures.
