AmeriFlex PresentsAmeriFlex Presents

Your POP Plan: A Guided TourYour POP Plan: A Guided Tour

Outline of PresentationOutline of Presentation

►What is a POP Plan?What is a POP Plan?►How do you start a POP plan?How do you start a POP plan?►The Plan DocumentsThe Plan Documents►Enrollment ProceduresEnrollment Procedures►Payroll AdjustmentsPayroll Adjustments

What is a POP Plan?What is a POP Plan?

►““POP” = Premium-Only PlanPOP” = Premium-Only Plan Insurance premiums onlyInsurance premiums only Employee share of the pieEmployee share of the pie Example: 80%/20% arrangementExample: 80%/20% arrangement

►80% of premium from employer80% of premium from employer►20% from employee through the POP plan20% from employee through the POP plan

►““Pre-tax” = not counted for Pre-tax” = not counted for purposes of calculating taxable purposes of calculating taxable incomeincome Example: $30,000 salary - $3,000 pre-Example: $30,000 salary - $3,000 pre-

tax = $27,000 of taxable incometax = $27,000 of taxable income Also means no “payroll tax” (“FICA”)Also means no “payroll tax” (“FICA”)

What is a POP Plan?What is a POP Plan?

►For different types of insurance For different types of insurance productsproducts HealthHealth DentalDental VisionVision AccidentAccident LifeLife DisabilityDisability

The Plan DocumentsThe Plan Documents

►Two important documentsTwo important documents The Plan DocumentThe Plan Document

►The plan’s “rulebook”The plan’s “rulebook”►LegaleseLegalese►Guided tour in a separate presentationGuided tour in a separate presentation

The Summary Plan Description (SPD)The Summary Plan Description (SPD)►The explanation of the rulesThe explanation of the rules►Plain languagePlain language►Guided tour in a separate presentationGuided tour in a separate presentation

NotNot optional optional

Enrollment ProceduresEnrollment Procedures

►Annual “Open Enrollment”Annual “Open Enrollment” All eligible employeesAll eligible employees Choice of optionsChoice of options Make electionsMake elections

►NOTE: They are electing not just the NOTE: They are electing not just the benefit, but the salary reductionbenefit, but the salary reduction

►Mid-Year Election Changes & Mid-Year Election Changes & EnrollmentsEnrollments

Payroll ProceduresPayroll Procedures

► In-HouseIn-House Make sure that person/office in charge Make sure that person/office in charge

has the correct informationhas the correct information Double-check the payroll runs for the Double-check the payroll runs for the

first couple of pay cyclesfirst couple of pay cycles Mistakes can be time-consuming to Mistakes can be time-consuming to

correctcorrect►OutsourcedOutsourced

Experienced payroll services Experienced payroll services understand how salary reductions workunderstand how salary reductions work

Make sure you provide the correct Make sure you provide the correct information to theminformation to them

ConclusionConclusion