HR Glossary

Premium only plan (POP)

Premium only plan refers to the section 125 of the IRS Code, a type of cafeteria plan that allows employees to change taxable cash benefits such as salaries into non-taxable benefits.

what-is-premium-only-plan-pop

Premium only plan definition (POP)

Premium only plan refers to the section 125 of the IRS Code, a type of cafeteria plan that allows employees to change taxable cash benefits such as salaries into non-taxable benefits. They use those benefits then to pay for qualified benefit premiums before any taxes are deducted from their paychecks.

Benefits of premium only plans

1. Lower employer taxes

2. Lower administrative costs

3. Easy to set-up via the payroll system

4. Happier employees

5. Lower employee taxes

6. Lower insurance costs

7. Better health coverage

See TalentLyft in action

Applicant Tracking, Recruitment Marketing, Sourcing and Talent CRM software are powerful alone, but unstoppable when used together!

Related content

  • Behavioral-Based Interview

    Behavioral-based interview is an interviewing technique which employers use to evaluate candidate's past behavior in different situations in order to predict their future performance.➡️ Download The...

  • Cafeteria Plan

    Cafeteria plan refers to a type of employee benefit plan in which an employer offers employees a set of different taxable and non-taxable benefits.Cafeteria plan definitionCafeteria...

  • Counter Offer

    A counter offer is an offer given in response to a salary offer from an employer. It implies rejection of the original offer.Counter offerOffer given in...

  • Direct Placement

    Direct placement refers to the bringing together of a potential employee and a prospective employer for the purpose of a permanent employment relationship. Introduction to Direct...

Explore more topics

  • Culture Fit

    Ensure culture fit in your hiring process with strategies that align candidates’ values and behaviors with your company’s culture. Learn how to assess cultural compatibility during interviews, foster a positive workplace environment, and build a team that not only excels in skills but thrives within your organization's unique culture.

    Learn more

  • Recruitment Process

    You are here to improve and optimize your recruitment process and that is exactly what we'll do for you. Sit back and dive into the best strategies, practices and tips to attract and hire candidates in the most streamlined and efficient way.

    Learn more

  • Candidate Experience

    Candidate experience is a critical factor in shaping a positive employer brand and attracting top talent. Learn how to deliver a personalized and engaging candidate experience that reflects your company's values, fosters long-term relationships with candidates, and enhances your reputation as an employer of choice. Secure the best candidates with a standout hiring process.

    Learn more

  • Coronavirus (Covid-19)

    Discover how to navigate and survive the coronavirus (Covid-19) crisis by turning challenges into opportunities. Learn strategies for adapting your workforce, supporting remote work, maintaining employee engagement, and ensuring business continuity. Stay resilient and transform obstacles into growth during this unprecedented time.

    Learn more

  • Recruitment Trends

    Stay up-to-date with the latest trends shaping the recruitment industry. From AI and automation to remote hiring and employer branding, discover how modern recruitment strategies are evolving. Learn to adapt to these trends and enhance your talent acquisition process to attract top candidates in a competitive market.

    Learn more

  • Training and Development

    Training and development of your existing and new employees is what drives organizational success in the long term. By giving your people opportunities to educate themselves and improve their skills and expertise, you create a culture of learning, reducing turnover and improving productivity. Learn all the best practices and set up your employees for success!

    Learn more

Simple and affordable recruitment software

Schedule a Demo Start Free Trial