Cafeteria Plans
The cost of employee benefits continues to increase at an alarming rate. A Cafeteria
Plan allows the employer to contain these expenses while offering employees the
opportunity to choose an individualized benefit package. A Cafeteria Plan may be set up to
provide any combination of the following programs:
- Premium Conversion Plan - Employees pay premiums for employer-provided
health plans on a pre-tax basis
- Flexible Spending Accounts - Employees are reimbursed on a pre-tax basis
for health care expenses and/or child care expenses
- Short and Long Term Disability
- Life Insurance
- Other Insurance Coverages
- Vacation Buying and Selling
These benefits are nontaxable to the employee if the Cafeteria Plan meets the
requirements of Internal Revenue Code Section 125.
Our services include the following:
- Plan illustrations gauge participation and estimate costs versus benefits
- Preparation of plan documents for the employer, Summary Plan Description
for distribution to employees, and all administrative forms
- Ongoing administration, including participant accounting, collection of
reimbursement requests, reimbursement check printing, and preparation of participant
statements and company reports
- Nondiscrimination testing
Consulting on plan design, interpretation and operational
issues
Integral to the success of a Cafeteria Plan is an understanding by the employees of the
tax benefits of the different programs. Here again our experience in conducting or
facilitating employee meetings works to promote confidence and participation in the plan.