cafeteria plan


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Related to cafeteria plan: cafeteria benefits

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.
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A cafeteria plan is the only way for employers to offer employees a choice between taxable and nontaxable benefits, "without the choice causing the benefits to become taxable," the 1RS says.
Related: Proposed cafeteria plan regs provide discrimination test
Health flexible savings accounts (FSAs) offered as part of a cafeteria plan.
I've been thinking about the cafeteria plan idea, and I went back and looked at the enabling legislation," he says.
There are four different menu options available through the BASE 125 Cafeteria Plan.
The mechanics of the cafeteria plan works much like a cafeteria that serves food as mentioned above.
Some experts described a creative method to avoid this problem called a "premium reimbursement arrangement," in which employees pay insurance premiums directly and then seek reimbursement through their cafeteria plan (as is commonly done for FSAs) (Glass 2008).
Prior to PPACA, several states sought to capitalize on the tax advantages of Section 125 plans by requiring or encouraging all employers to offer a cafeteria plan for the pre-tax payment of health insurance premiums, even if the employer did not sponsor a group health plan (Hall, Hager, and Orentlicher 2010).
Under this safe harbor, a cafeteria plan and the specified qualified benefits will be treated as meeting the specified nondiscrimination rules if the plan satisfies minimum eligibility, participation and contribution requirements.
A cafeteria plan (or "flexible benefit plan") is a written plan in which all participants are employees who may choose among two or more benefits consisting of cash and "qualified benefits.
A cafeteria plan allows employees to reduce their gross income, thereby reducing the amount they pay in Federal, Social Security, and some state taxes.
A cafeteria plan allows employees to contribute a certain amount of their gross income to a designated account before taxes are calculated.