cafeteria plan

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cafeter′ia plan`


n.
a fringe-benefit plan under which employees may choose from among various benefits those that best fit their needs up to a specified dollar value.
[1985–90]
References in periodicals archive ?
Cafeteria plans allow employees to pay, on a pretax basis, for individual health insurance premiums not otherwise paid for by their employer.
Under guidance issued in late October (Notice 2013-71), cafeteria plans can be amended to allow health FSAs to carry over $500 into the next plan year.
They specialize in complex self-funded and fully insured designed benefit plans, merger and acquisition implementations, and the administration of comprehensive employee benefit programs including retirement plans, online enrollment systems, wellness programs and cafeteria plans for their clients throughout the United States.
The acquisition will help Arthur expand its portfolio to offer benefits plan design, group purchasing programs, consumer directed plans like health savings accounts, health reimbursement arrangements and cafeteria plans, retirement plans and regulatory compliance.
A little known provision in the PPACA contains a section making cafeteria plans better than what they used to be for all firms with 100 or less employees.
The company specializes in group medical, dental, life and disability insurance, with an emphasis on consumer-directed plans such as health savings accounts, health reimbursement arrangements and cafeteria plans, Arthur J.
Payroll taxes and assessments do not apply to wages in cafeteria plans.
Authorized by Section 125 of the Internal Revenue Code, cafeteria plans permit employers to offer voluntary benefits on a pre-tax basis.
Small Employers May Establish 'Simple' Cafeteria Plans: The new law will provide an eligible small employer with a safe harbor from the nondiscrimination requirements for cafeteria plans and from the nondiscrimination requirements for specified qualified benefits offered under a cafeteria plan--including group term life insurance, benefits under a self-insured medical expense reimbursement plan and benefits under a dependent care assistance program.
The notice also states that employers with cafeteria plans may permit employees to immediately make pre-tax salary reduction contributions to provide coverage for children under age 27, even if the cafeteria plan has not yet been amended to cover these individuals.
Aimed at lowering costs for both employees and their employers, cafeteria plans were created by a 1978 federal law which amended the Internal Revenue Code.
In an effort to make insurance coverage available and more affordable--and to increase the number of people who use commercial health insurance--several states have expanded the use of health premium cafeteria plans.