SECTION 125 PREMIUM ONLY PLAN Employee Election Form Employee Date Employer Name We are pleased to provide you with a new employee benefit which will increase your takehome pay. Its called the Premium.

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How to fill out the SECTION 125 PREMIUM ONLY PLAN Employee Election Form online

Completing the SECTION 125 PREMIUM ONLY PLAN Employee Election Form online is a straightforward process that can enhance your financial benefits. This guide aims to provide you with step-by-step instructions to ensure a smooth and efficient completion of the form.

Follow the steps to complete the form accurately online.

  1. Click ‘Get Form’ button to obtain the form and open it in the editing interface.
  2. Begin by filling in your name and the date at the top of the form. This information identifies you as the employee making the election.
  3. Enter your employer's name in the designated field. It's important to provide accurate employer information, as it links your election to the correct company.
  4. In the Plan Election Section, carefully read the options provided. You can choose to participate in the Premium Only Plan or opt-out. Indicate your choice by marking the appropriate box.
  5. If you choose to participate, enter the amount for your Monthly Pre-tax Deduction in the specified field. Ensure accuracy, as this amount will affect your take-home pay.
  6. Sign your name and include the date at the end of the Plan Election Section. This signature confirms your understanding and agreement to the terms stated.
  7. If applicable, move to the Election Change Section. Here, indicate any changes in your family or employment status that justify a change in your premium deductions.
  8. Mark the relevant checkbox for your status change and provide the new Monthly Pre-tax Deduction amount along with the date of the status change.
  9. Lastly, sign and date the Election Change Section if you’ve made any updates. Ensure all information is clear and legible.
  10. Once all sections are completed, save your changes. You may download, print, or share the form as needed.

Complete your SECTION 125 PREMIUM ONLY PLAN Employee Election Form online today to maximize your benefits.

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What is a Section 125 form?

The written plan must specifically describe all benefits and establish rules for eligibility and elections. A section 125 plan is the only means by which an employer can offer employees a choice between taxable and nontaxable benefits without the choice causing the benefits to become taxable.

Get your written plan today Work at no cost or risk with a certified plan consultant via email or call 1-888-755-3373. Or, go ahead and order your Core 125 plan document package (below) and we'll call you if we have questions on the information you provide us.

Starting a section 125 plan requires following these three simple steps: Complete the necessary plan documents. Notify employees that you are offering a Section 125 cafeteria plan. Hire a TPA to administer your Section 125 plan and process reimbursements.

A premium only plan (POP) is the most basic – and most popular – type of Section 125 Cafeteria Plan that allows employer-sponsored premium payments to be paid by the employee on a pre-tax basis instead of after-tax.

With Section 125 Spending Accounts, you can use pre-tax earnings to pay for two types of expenses: (1) dependent day care costs, in or out of your home; or, (2) health care expenses like medical plan co-pays, deductibles, or other expenses that are not covered under your health insurance plan.

IRS code Section 125 allows an employer to set up a Premium Only Plan (POP), where an employee's insurance premium contributions can be deducted from his or her payroll on a pre-tax basis. This can save employees up to 40% on income taxes and payroll taxes. The employer also saves on these taxes.

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