A cafeteria plan (Section 125 of the Internal Revenue Code) is a versatile employee benefit package designed exclusively by the employee. With a cafeteria plan, the employee enjoys non-taxable benefits and elects to direct a portion of his or her salary into the plan to be used to pay for expenses related to a number of areas of his or her choosing, from health care to child care to disability insurance.
The funds deferred from an employee's paycheck to his or her cafeteria plan are non-taxable, which reduces the employee's taxable income and ultimately saves him or her a lot of money on any procedures or other services covered by the cafeteria plan.
Section 125 cafeteria plans benefit the employer as well, by reducing employer FICA, and they increase employee morale, because they show employer concern.
Employee Cafeteria Plans can offer coverage for:
- Hospitalization premiums
- Term Life Insurance (group or 5-year term)
- Disability premium & sick leave
- Supplemental Medical Premium
- Dependent Care Expenses
- Employee Paid Medical & Dental Expenses
- Flexible spending accounts
Learn More about Cafeteria Employee Benefit Plans
As flexible spending accounts, cafeteria plans are an excellent and affordable way to provide for your loyal employees an array of exceptional benefits they have the ability to choose from. For more information on selecting a cafeteria plan for your Texas business, please call 1 (888) 266-2680 or (713) 527-0444 to speak to a Dean & Draper representative, or simply fill out and submit the form below.