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Cafeteria plan - Wikipedia, the free encyclopedia
A cafeteria plan is a type of employee benefit plan offered in the United States pursuant to Section 125 of the Internal Revenue Code. Its name comes from the earliest such plans that allowed employ...
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cafeteria plan - definition of cafeteria plan - A benefits plan that allows employees to select from a pool of choices, some or all of which may be tax-advantaged. Potential choices include cash,... ... cafeteria plan in the news...
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Business term Cafeteria Plan defined ... Cafeteria plans, also known as Section 125 plans (because of the section of the IRS code that covers them), and flexible spending plans allow employees to use pretax dollars to choose among different types of benefits. ... Home > Encyclopedia > Category > Employee Benefits > Cafeteria Plan...
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Using a cafeteria plan employees pay for the benefits they select before taxes are calculated on their wages. In other words, they get to use 100% of those designated dollars for benefits rather than using after tax dollars.
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PR: Employers nationwide are learning how to offset high insurance rate increases by reducing payroll taxes with Section 125 Cafeteria Plans. In many cases, employer savings can add up to as much as 20 percent of every dollar being passed through the plan. ... 3. Dependent Care Assistance Plan flexible spending accounts (FSA).
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