At PremiumOnlyPlans.com, our sole focus is IRC Section 125 Premium Only Plan administration. A lot of people ask us why we would specialize in such a simple product. There are a couple reasons.

The first reason is because nobody else does, which creates an opportunity for us to be the very best. While a number of companies offer premium only plans, for many of them it’s more of an afterthought – their primary business might be payroll services, HRA and FSA administration, or even worksite products like accident and critical illness insurance. POPs are just “another product” to some of these companies, and that can be dangerous because of reason number two: these products aren’t as simple as most people think.

While some would have you believe that there’s nothing more to a POP than signing a boilerplate plan document, that’s not actually the case. The plan document is part of it, but did you know that employers are required to perform two types of annual non-discrimination tests? Failing to perform these tests can result in severe penalties if the company is ever audited, up to and including cancellation of the plan and required payment of all taxes since the inception of the plan.

This is not a do-it-yourself job – or at least it shouldn’t be for most employers. While PremiumOnlyPlans.com does sell the plan document for any employers who want to do the non-discrimination testing themselves, we don’t advise it. That’s why we’ve priced our silver level option, which includes both the plan document and all required compliance testing, at a very affordable price. Don’t risk it – leave the heavy lifting to us and rest assured that if you’re ever audited your plan will get a “thumbs up” from the IRS.