Required document · Section 125
POP / Section 125 Plan
The premium-only plan document that lets your employees pay their health premiums pre-tax — legally. Most employers deduct pre-tax without ever having one on file.
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POP / Section 125 Plan
maple-manufacturing-premium-only-plan.docx
Maple Manufacturing Premium Only Plan
Premium Only Plan — Internal Revenue Code Section 125
Effective January 1, 2026 · Plan Year: January 1 – December 31 · ERISA Plan Number: 502
1. Adoption of the Plan
Maple Manufacturing, LLC, a Michigan employer (the “Employer”), adopts, effective January 1, 2026, the Maple Manufacturing Premium Only Plan (the “Plan”), a premium only plan established under Section 125 of the Internal Revenue Code. The Plan is identified by ERISA Plan Number 502. The purpose of the Plan is to permit eligible employees to pay their share of the premiums for the benefits described below on a pre-tax basis, in accordance with Section 125 of the Internal Revenue Code and the regulations issued under it.
2. Eligibility and Participation
Eligibility to participate in the Plan is determined by class, not by individual. The following employees are eligible to participate: all employees regularly scheduled to work 30 or more hours per week. Coverage begins after 60 days. Eligibility is described by class only. The Plan does not require, and this document does not contain, any list of individual employees.
3. Benefits and Premium Conversion
Each eligible employee may choose either (a) to receive their full compensation in cash, which is taxable, or (b) to have a portion of that compensation applied, before taxes, toward the premiums for one or more of the qualified benefits listed above. This choice between taxable cash compensation and pre-tax qualified benefits is the election the Plan offers under Section 125 of the Internal Revenue Code. An employee who makes no election receives their full compensation in cash.
7. Adoption Signature
______________________________________ Dana Whitfield, Operations Manager ______________________________________ Maple Manufacturing, LLC ______________________________________ Date
Maple Manufacturing Premium Only Plan — Premium Only Plan (IRC §125) — effective January 1, 2026 — generated by MiCompli
How it works
- 1
Tell us how employees contribute
How premiums are split and deducted from pay.
- 2
We generate a signature-ready POP
A written Section 125 plan document that actually satisfies the requirement.
- 3
Put it on file before deductions run
The document has to exist before the pre-tax deduction begins — we make sure it does.
- 4
Keep it current
As your plan changes, we keep the document aligned.
Without a written §125 document on file before deductions begin, pre-tax premium deductions can be disallowed — making them taxable and exposing you to back payroll taxes on every pre-tax dollar. A payroll provider running the deduction doesn't mean the document exists.