Section 125 Premium Only Plans (POP)

Pay for benefits before taxes take their cut.

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Health & Welfare

About this plan

A Section 125 Premium Only Plan (POP) lets employees pay their share of insurance premiums with pre-tax dollars. It's one of the simplest ways to reduce taxes for both employers and employees — with very little administrative lift.

What's Included

Employees pay insurance premiums before federal and state taxes
Reduces FICA taxes for both employers and employees
Minimal administrative burden — easy to set up and maintain
IRS-compliant Section 125 plan document included
Annual non-discrimination testing, handled by NBS
Layers easily with FSAs and other Section 125 benefits

For Employers

One of the lowest-effort, highest-impact benefits you can offer. NBS provides the Section 125 plan document, handles compliance, and keeps it running year after year.

For Participants

Every dollar you contribute toward your insurance premium goes in before taxes — which means a bigger paycheck without changing a thing.

NBS administers more than Section 125 Premium Only Plans (POP)

Many employers use NBS across multiple benefit types — consolidating administration simplifies vendor management and gives your employees a consistent experience. You may also be interested in these related plans.

Questions? We're here to help.

Whether you're an existing client, a participant with a question, or exploring NBS for the first time — our team is ready.