Locations
Shelton Office
112 Huntington Street
Shelton, CT 06484
Phone: (203) 926-0001
Toll-Free: 888-397-3772
Middletown Office
573 Newfield Street
Middletown, CT 06489
Phone: (860) 346-9661
Toll-Free: 888-397-3772
Southington Office
276 North Main Street
Southington CT 06489
POP
A Premium Only Plan
Cut the Cost of Payroll Taxes with a Section 125 premium Only Plan.
A Premium Only Plan (POP) lets you cut payroll taxes without cutting your payroll. A Section 125 Premium Only Plan (POP) saves you and your employee’s money by reducing payroll taxes. It works by making one simple adjustment in your payroll process. Employees pay their portion of insurance premiums on a pre-tax basis rather than on an after-tax basis.
The Premium Only Plan reduces your taxable payroll by reducing your employee’s taxable income. So both you and your employees pay less in taxes.
Relieve the Pressure of Rising Health Care Costs
Let’s face it, with the rising cost of providing health care to your employees, it seems that the only ones who are benefiting are the large health care organizations. Serra & DelVecchio Insurance offers you a solution where everyone wins. We can help you reduce the amount you pay in payroll taxes and, at the same time, increase your employees’ take home pay! That solution is Serra & DelVecchio Insurance.
Serra & DelVecchio Insurance can generate FICA savings for employers and can increase their employees’ spendable income through the use of Premium Only Plan (POP).
Internal Revenue Code Section 125 allows employees to sect certain benefits normally paid on an after-tax basis and instead, pays for them pre-tax.
With a POP, the contributions an employee makes for insurance premiums for health, dental, disability and group term life insurance programs can be paid for pre-tax. The net results are that the employee saves at least 22% in Federal and FICA taxes.
When employees pay for theses benefits pre-tax, it allows them to increase their spendable income while giving their employer substantial FICA tax savings. In fact, it could save your company thousands of dollars in payroll taxes a year depending on the size of your company! It may even cover the total cost of processing your payroll!
You are asking your employees to pay more in premiums and the benefits they receive cover less. Why not give your employees a tool to help them manage this increase in cost?
| Monthly Income | $3,000.00 |
| Less Taxes | $750.00 |
| Net Pay | $2,250.00 |
| Less Group Medical | $300.00 |
| Spendable Income | $1,950.00 |
| Monthly Tax Savings | $0.00 |
| Annual Tax Savings | $0.00 |
| Monthly Income | $3,000.00 |
| Less Taxes | $750.00 |
| Net Pay | $2,700.00 |
| Less Group Medical | $675.00 |
| Spendable Income | $2,025.00 |
| Monthly Tax Savings | $75.00 |
| Annual Tax Savings | $900.00 |
| Monthly employer's Tax Savings | $22.95 |
| Annual Employer's Tax Savings | $275.40 |
Testimonials
“As a customer of fifteen years, I am so pleased year after year with the service you have provided to M.T. Maritime. I wanted to extend my sincere appreciation for the exceptional services and performance you and your staff have always provided to our company and the personal attention you have given to our employees. Your staff is extremely knowledgeable, experienced and so very nice to work with. I have completed my year end analysis on our newly implemented Health Reimbursement Arrangement medical program, and I am pleased to report that we saved a significant amount of money as a result. The employees have been very receptive and happy with this plan. I am grateful to you and your staff for your knowledge and experience and for always delivering new and creative ways in this difficult time of inflated medical costs. Thank you very much for your hard work, dedication and for your outstanding service that you have provided to us year after year.”
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