- What are
- Are there
advantages to offering a Cafeteria Plan?
- Must the company
have group medical insurance to offer this plan?
- Are all employees
required to participate in the plan?
- When can we begin
- How much will it
cost to begin and continue this plan?
- Can employees
change their elections at any time?
- What if employees
don't use their entire annual election?
- What should the
Company do with employee forfeitures?
- What are the
plan maximums for the Flexible Spending Accounts?
- Are there any
government requirements for having a Cafeteria Plan?
- Does Benefit
Consulting, Inc. share client data with other firms?
- How does an
employer go about getting their plan started?
Cafeteria Plans are employer sponsored
employee benefit plans that allow employees to elect benefits on a pre-tax
basis. Thereby ensuring that employees and employers save
Congress legally provided for Cafeteria Plans in 1978 under IRS Code Section
They are also referred to as Flexible Benefit Plans or Section 125 Plans.
* Employers save payroll taxes
* Employees save income taxes and take home pay increases
* Increased employee morale
* No net cost to implement a Cafeteria Plan
Benefits that are offered to employees are controlled by the
Company. Only the benefits that are available through each individual
employer are deductible by the employees.
This is a purely voluntary plan.
Your plan can begin at any time.
Most employers chose the first day of any month.
Administrative costs are minimal compared
to the tax savings this plan generates. Please click
here for our fee schedule.
Employees can only change their elections
annually during the enrollment process. Any changes after the start of the
plan must be related to a qualifying event. Click
here to view a partial list of Qualifying Events.
Employees have ninety (90) days from the
end of the plan year to submit claims for reimbursement from their Flexible
Spending Account. At the end of those ninety (90) days, any monies not
claimed will be forfeited.
Most employers use forfeitures to offset
The maximum annual election for the
Dependent Care FSA is $5,000 ($2,500 for married filing separately). The
Medical FSA maximum annual election is set by the employer.
Discrimination testing must be performed to ensure that the plan does not
discriminate in favor of key or highly compensated employees.
Plan Documents must be prepared and maintained.
The plan is subject to COBRA and FMLA.
All of the data supplied to us is secure and is not sold or shared.
Please see our Privacy Statement.
It is easy to get started. Contact
us to get started today!