cafeteria plan

(redirected from Section 125)
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ca·fe·ter·i·a plan

(kafe-tē'ri-a plan)
Employee benefit plan that allows a choice between alternative nontaxable benefits.

cafeteria plan,

n an employee benefits plan in which employees select their medical insurance coverage and other nontaxable fringe benefits from a list of options provided by the employer.
References in periodicals archive ?
Using section 125 plans for individual insurance is legally controversial, however, under both federal and state law (Hall and Monahan 2010).
Usually only larger employers offer cafeteria plans with a full menu of benefits, but Section 125 cafeteria plans can also be set up for a single purpose such as paying health insurance premiums.
Therefore the Committee has suggested that the definition of the word 'wife' in Section 125 should be amended so as to include a woman who was living with the man as his wife for a reasonably long period, during the subsistence of the first marriage.
A summary of TEI's recommended changes to the proposed section 125 cafeteria plan regulations is, as follows:
Businesses with 11 employees or more are already required by federal tax laws to offer the Section 125 deduction systems which are named after a section of the federal tax code.
A recent study by Eastbridge looked at the current best practices for administering Section 125 business, especially flexible spending accounts (FSA) administration.
However, the voluntary salary reductions covered under the cafeteria-plan provisions of IRC section 125 are not considered constructively received and thus are not salary or wages for income tax purposes.
The Chamber also provides a complimentary Section 125 Premium Only Plan to companies enrolled in our Blue Cross Blue Shield of Michigan program.
The application can be used for claims ajudication, re-pricing, managed care functionality, billing and administrative functions, case management, utilization, review, PPO management, COBRA management, section 125 administration, batch laser printing, electronic claims transmissions, ad hoc reporting and claims edit processing.
The plaque, which will be displayed in a visitors center near the pipeline, was presented by Phil Zammit, AWS District 19 Director and Bruce Weisman, Chairman of AWS Section 125, and accepted by Lee Monthei, vice president of engineering and projects and Alan Beckett, senior welding engineer, on behalf of Alyeska Pipeline Service Company, the organization responsible for the operation and maintenance of the Pipeline.
AFA also provides certain Section 125 administrative services for cafeteria plans, allowing employees the advantage of pre-tax funding of selected benefits.
Fortunately for employers and employees, there is an affordable and accessible way to fight the high cost of medical care a Section 125 Cafeteria Plan.