What Is A Cafeteria Plan?A Cafeteria Plan allows employees to pay for specific medical expenses and premiums with before-tax dollars. Essentially, the employee saves federal income and FICA taxes on the total amount paid through a Cafeteria Plan, and in most states, the employee also saves stat...
Curious about "Cafe 125" on your W-2 form? It refers to IRS Section 125, which pertains to tax-free employee benefit plans like cafeteria plans. Learn how it impacts your taxes.
When you dive into different small business employee benefits, you might consider a section 125 plan. But, what is a section 125 plan? Is it a cafeteria plan? Are section 125 plans pre-tax health insurance? Keep reading to find out the answers to these questions and more. What is a ...
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Medical expenses: While additional medical care plans, such as eye or dental care, are non-taxable, the cost a company incurs for employees' annual medical expenses is subject to tax. Subsidized meals: Meals that an employer provides in the company cafeteria or dining room aren't taxable if ...
Not to be confused with a place to go for coffee, Cafe 125 is short for a “cafeteria plan” established under Section 125 of the U.S. tax code. A cafeteria plan is a type of employee benefits plan that allows workers to choose from a variety of benefits options and generally pay for...
Donotinclude these benefits in a cafeteria plan: Archer medical savings accounts Athletic facilities De minimis (minimal) benefits Educational assistance Employee discounts Employer-provided cell phones Lodging on business premises Long-term care insurance ...
What Is a Cafeteria Plan? Acafeteria planrefers to a suite of fringe benefits that allow employees to choose among them. Often, these benefits will come out of pre-tax dollars and may include insurance plans, and retirement benefits. The name cafeteria is used because it is akin to a menu...