My Compliance Solution: A Friendly Reminder that Taxfreepremium POP Plan Nondiscrimination Due Date is Almost Here

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My Compliance Solution is reminding employers currently utilizing a Taxfreepremium POP to complete their nondiscrimination testing before end of the year. Taxfreepremiums provides free nondiscrimination testing software, so subscribing employers should be well equipped to meet all necessary testing requirements.

There is no reason for the process of nondiscrimination testing to threaten the tax-free savings employers under a POP enjoy.

December 31 is nearly upon us, and for employers currently utilizing a Taxfreepremium premium only plan (POP), the due date for nondiscrimination testing is almost here. Employers failing to correctly complete their nondiscrimination testing face a barrage of relatively stiff financial penalties; in order to maintain their POP and continue to accrue the tax savings they provide, employers must file their nondiscrimination testing before the end of the plan year.

Nondiscrimination testing ensures that highly compensated and key employees, as defined by the IRS, are not provided an unfair portion (25% or more) of the nontaxable benefits offered through a POP plan. Highly compensated employees include those individuals within a company who are:

  •     Officers
  •     Are 5% shareholders
  •     Accrue an annual compensation of more than $110,000
  •     Are a spouse or benefiting dependent of a highly compensated employee

Employees falling under the IRS Key Employee classification include any employee who has within the last 4 years were:

  •     Officers who earned a gross annual compensation of over $160,000
  •     Employees owning at least 5% of the company
  •     employees owning at least 1% of the company with gross annual compensation over $150,000

Taxfreepremiums provides free nondiscrimination testing software with every POP plan purchased, so employers currently utilizing their services should be more than equipped to complete all necessary nondiscrimination testing. Concerned employers with any questions concerning nondiscrimination as well as other annual POP requirements should visit

As a technology driven industry leader, My Compliance Solution, inventor of, helps employers, insurance advisors, CPAs, attorneys, and payroll providers get in and stay in POP compliance. They are the industry leader in Section 125 POP Plan Documents and provide a compliance package through an annual subscription service. This service provides a virtual toolkit with all required documents and a step by step process designed to get an employer in compliance with IRS and DOL requirements. The service provides automated compliance updates, archived documents, and now, Non-Discrimination Testing Software at a low annual fee. Learn more at

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Grant Bagby
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