1. Allied provides the required tax documents and assistance, free of charge, for an Allied group health plan or large ancillary group (26+). For smaller ancillary groups, we'll provide the documents for a small charge (only $50 a year).
2. When an employee signs the pre-tax document, premium contribution amounts are automatically deducted from their salary before taxes are calculated, which lowers the income amount.
3. Once the pre-tax income is lowered, the group will contribute less to Social Security and Medicare payroll taxes. State taxes also may be lowered if the state recognizes POP plans.