Save Tax Dollars

What is a Cafeteria Plan?

A Cafeteria Plan is a tax-savings employee benefit plan in which participating employees can select qualifying benefits from a menu of choices. A portion of the employee’s salary is redirected and ‘banked’ by the employer in an account maintained for the employee. When an expense is incurred for one of the qualifying benefits, the employer reimburses the employee from the dollars in the banked account.

Your company will SAVE money!
Your employees will SAVE money!

 

What benefits can my company include in our Cafeteria Plan?

Your company’s Cafeteria Plan can include any combination of the following:

  • Insurance Premiums. Health insurance plan premiums (employee paid portion) and other employer-sponsored insurance coverage, including dental insurance premiums, disability and accident benefits, *and group-term life insurance premiums**
  • Medical expenses not covered by insurance. Typical expenses include eyeglasses, medical examinations, dental/vision care expenses and insurance deductibles and co-payments for the employee and his family
  • Adult and child day care expenses. The cost to care for a dependent while the employee and spouse (if married) work.

* If disability insurance is paid for on a pre-tax basis. Any benefits received are taxable to the employee. Under most circumstances, it is recommended that disability insurance not be included in the Cafeteria Plan.

**Group-term life insurance up to $50,000 coverage.

Note: Insurance products with return of premium or benefits building features cannot be paid for on a pre-tax basis.