Cafe 125 refers to IRS Section 125, which covers cafeteria plans. These cafeteria plans allow employees to set aside pre-tax income for certain benefits, including dependent care assistance, group term life insurance, and adoption assistance. Learn more
Common fringe benefits are basic items that are often included in hiring packages. These includehealth insurance,life insurance, tuition assistance, childcare reimbursement, cafeteria subsidies, below-market loans, employee discounts,employee stock options, and use of a company-owned vehicle. Uncommon fri...
Running a robust payroll process is a key responsibility for all employers. Employees deserve to get paid correctly and on time. Businesses also need to be sure they are always tax compliant. Regular payroll audits play a big part in ensuring payroll is effective and efficient. So, what’s t...
IRS Section 125 is responsible for the governing of a Cafeteria Plan. It is a reimbursement plan that allows employees to direct a specific dollar figure of their gross income to one or more accounts. The contribution is taken before taxes are calculated. Qualified expenses include coverage for ...
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...
The next step is a bit tricky. Be sure to differentiate between employee contributions to Federal Insurance Contributions Act (FICA) taxes and employer contributions to FICA taxes. The latter will be a portion of your accrued payroll; the former was already accounted for in gross pay. Next, ad...
What is a partial plan termination? Internal Revenue Service: Internal Revenue Service (IRS) works on collecting taxes in the United States. Furthermore, IRS does proper administration of internal revenue codes. Answer and Explanation: Learn more about this topic: ...
What is life insurance? What is a partial plan termination? What is a cafeteria-style benefit plan? What are compensation plans in HR? What is a severance package? What is a 409A plan? What is a rollover IRA? What is a disposition in investing?
What is a Health Flexible Spending Account (FSA)? A health FSA is an employer-established benefit plan. Your employer can offer them with other benefits as part of a cafeteria plan. A health FSA allows you to be reimbursed for qualified medical expenses, including co-pays, eyeglasses, prescr...
Professionals who purchase goods for their trade in a jurisdiction where there is no sales tax but will be used in an area where there is one.1 The use tax rate is the same as the resident's local sales tax rate, which includes both state and local sales taxes. It is up to consumers...