As the HR manager, you've been looking for creative ways to provide employees with greater benefits without incurring significant additional costs. Your company already has a POP in place. Which of the following would you be most likely to recommend?

Question

Quizplus · Accepted Answer

Like a POP (premium only plan) an FSA (flexible spending account) falls under Section 125. An FSA goes one step further than a POP by allowing employees to set aside pre-tax dollars to pay for medical expenses that are not covered by insurance. This lowers the employee's taxable income, which benefits the employer as well as the employee.
Key Takeaway: PCA refers to the Walsh-Healey Public Contracts Act, which was passed in 1936. An ESOP (employee stock ownership plan) involves the distribution of stock, and establishing one is much more complex than establishing and FSA. Creating an ESOP has many implications and would not constitute an appropriate solution for a problem such as this. PNG is not a commonly known acronym in HR.

As the HR Manager, You've Been Looking for Creative Ways