The Premium Only Plan* (P.O.P.)

Through an arrangement with Ceridian Benefits Services, Inc., UniCare is pleased to offer a valuable small group service: the Premium Only Plan (P.O.P.). With a simple change in your payroll process, your and your employees can generate immediate, significant tax savings!

P.O.P. Plan Advantages

You can:

• Generate significant company tax savings through a reduction in their taxable payroll
• Receive P.O.P. for only $125 per year
• Consider applying their tax savings toward the purchase of enhanced employee benefits, increasing employee satisfaction

Your employees can:

• Increase their take-home pay
• Defray part of the cost of their premiums with associated tax savings
• Reduce FICA, federal or, where applicable, state or local taxes on their portion of employer-sponsored plan insurance premiums

How the P.O.P. Plan Works

P.O.P. is made possible through certain provisions of Section 125 of the Internal Revenue Code. The total taxable payroll of a company is reduced by the amount of your employees’ premium contributions. The savings to you depend on the total company payroll and the dollars your employees contribute toward their benefits. Employees use pre-tax dollars to pay their share of monthly premiums and also save by paying lower FICA, federal and applicable state/local taxes.**

This means savings to you and your employees without impacting their underlying coverage decisions.

For more information regarding how you can make P.O.P. work for you, please contact your authorized UniCare agent or refer to the Employer’s Guide to The Premium Only Plan (P.O.P.).

Consult with a tax or legal advisor for questions regarding the Internal Revenue Code.

*The services described for the Premium Only Plan are not insurance services or products. Administrative services for the Premium Only Plan are provided by Ceridian Benefits Services, Inc. which is an independent company not affiliated with UniCare.

**This information should not be construed as legal or tax advice.You may wish to consult your legal or tax advisor regarding tax laws.