By PeopleKeep Team on November 15, 2012 at 4:46 AM
By PeopleKeep Team on November 15, 2012 at 4:46 AM
A Section 125 Premium-Only-Plan (POP) is a cafeteria plan that allows employees to pay their health insurance premiums with tax-free dollars. Since 2009, employees have been able to use POP plans to pay individual health insurance premiums with tax-free dollars.
Using Section 125 POP to pay for insurance premiums benefits both employers and their employees. Several states actually require Section 125 plans for certain employers, and other states have enacted specific regulations without requirements. Be sure to check your state’s regulations.
*Note: Long Term Care Premiums are not reimbursable by a Section 125 POP plan.
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