SECTION 125 PREMIUM ONLY PLANS (POP) POP plans reduce employee taxes as well as employer matching FICA taxes for group insurance (typically health and dental) premiums. By pre-taxing their share of premium costs, employees save up to 35% depending on their tax bracket. As an employer, you save on the matching Social Security and Medicare (FICA) and Federal unemployment taxes for an approximate savings of 8%. FLEXIBLE SPENDING ACCOUNTS (FSA) The FSA principle is the same as the POP yet, an FSA allows you to expand the range of pre-tax deductions to include dependent care, dental, vision care, as well as out-of-pocket medical expenses such as deductibles and co-payments. DEPENDENT CARE PLAN A dependent care plan allows you to pay day-care expenses with pre-tax dollars. For employees with growing families or senior care responsibilities, a dependent care plan is a great way to reduce the financial burden on your employees. MEDICAL EXPENSE REIMBURSEMENT This plan allows employees to pay for out-of-pocket medical expenses not covered by insurance like: deductibles, co-payments, prescriptions, dental expenses, vision care, glasses, contacts, medically necessary over-the-counter drugs, etc. This plan puts more money in the employee’s pocket and reduces your payroll taxes. COMMUTER EXPENSE REIMBURSEMENT A Commuter Expense Reimbursement plan allows employees to pre-tax mass-transit and parking fees. If your employees’ commuting and parking costs are high, this can be a great employee benefit.