Why SBA for POP Administration?
Sound Benefit Administration provides a Section 125 Premium Only Plan that meets all compliance requirements.
Our knowledgeable staff can help with non-discrimination testing and distributing required paperwork to participants. We help employees understand the benefits and cautions of pre-taxing their premiums allowing them to make an informed decision before electing or waiving this benefit.
Is your POP in compliance?
While a Premium Only Plan may be a generally simple plan to administer when compared to other tax-savings plans, there are certain compliance requirements that must be met. For example:
- Is there a plan document?
- Is non-discrimination testing on the plan performed annually?
- Is a Summary Plan Description distributed to each employee participating in the plan?
- Do employees complete election forms to participate or waive enrollment in the plan?
- Do participants complete Change of Status forms when they change the amount they have deducted mid-plan year to conform to qualifying change-of-status requirements?
If you cannot answer yes to these questions, your plan will not pass a Department of Labor audit.
For ongoing POP administration, SBA provides:
- Plan Document
- Adoption Agreement
- Summary Plan Description
- Discrimination Testing
- Election forms
- Bookkeeper instructions
- Checklist for compliance
- 3-Ring Binder to keep archived plan years organized
- Plan Documents ONLY if material changes are made in Section 125 Premium Account regulations
- Annual renewal checklist
- Non-discrimination tests updated with indexed amounts
- Election forms