cafeteria plan


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Related to cafeteria plan: cafeteria benefits

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 ?
If an employer wants to offer employees pretax payroll deferrals to their health savings accounts, the employer needs to first create a Section 125 plan or cafeteria plan that allows HS A deferrals.
Tenders are invited for cobra administration and cafeteria plan services/flexible spending account (fsa) administration.
The Internal Revenue Service added a discrimination test, based on employees' use of the cafeteria plan benefits, in regulations proposed in 2007.
Thus, because the employee contributions are treated as employer contributions, the cafeteria plan is considered a group health plan subject to the market reform provisions, and, as such, the plan must provide preventive services without cost sharing in all instances.
But setting up a cafeteria plan requires that an employer offers insurance.
Instead of looking at the benefits plans individually, you really start to move toward what was envisioned with cafeteria plan legislation decades ago.
Employers that sponsor a BASE 125 Cafeteria Plan can allow employees who are paying medical expenses, insurance premiums or dependent care expenses to do so on a pre-tax basis.
A cafeteria plan for benefits works in much the same way.
Tax law in general, and cafeteria plan rules in particular, are complex, subject to differing interpretations, and frequently updated with new rulings.
Several authorities have taken the position that insurance paid for through a cafeteria plan must meet the nondiscrimination requirements of the Health Insurance Portability and Accountability Act with respect to eligibility, premiums, and benefits.
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.