A corporate benefits plan under which employees are permitted to choose among two or more benefits that consist of cash and certain qualified benefits. Cafeteria plans are also called flexible benefit plans or flex plans.
A benefit plan which allows employees to choose between one or more qualified tax-favored benefits and cash.
An employee benefit structure where by the employee may choose their own combination of benefits (generally health and retirement) that best meet their individual needs.
A plan that permits a participant to choose between two or more benefits consisting of cash and benefits. Also called a flexible benefit or 125C plan.
A health plan in which all employees may choose among two or more benefit options. This is also called a flexible benefits plan.
a benefits plan that, when established to meet the Code Section 125 requirements, allows employees to freely choose from a "compensation menu" that includes both taxable and nontaxable benefits without rendering the nontaxable items subject to income taxation
Flexible benefit plan under which the employer provides a range of taxable and nontaxable benefits options from which each eligible employee can make a limited number of selections. Options that may be available to employees through these plans include life insurance, health programs, retirement plans, vacation time, and stock options. Nontaxable benefits can include group term life insurance up to a specified amount of coverage, disability benefits, accident and health benefits, and group legal services to the extent that such benefits are excludable from gross income. A cafeteria plan that includes taxable and nontaxable benefits must meet certain requirements under the Internal Revenue Code. The term "Cafeteria Plan" may also describe a health benefit program that allows employees to select among various cost, coverage, or provider options.
An employee benefit plan that allows employees to select from a “menu” of taxable and nontaxable benefits.
Health benefits that are excludable for income and employment tax purposes. Under a cafeteria plan, an employee is provided a fixed budget to purchase various benefits such as health, life and disability.
a benefits plan that allows employees to select from a pool of choices, some or all of which may be tax-advantaged. Potential choices include cash, retirement plan contributions, vacation days, and insurance.
A written plan that meets the requirements of Code 125 and offers Covered Employees a choice between cash and particular nontaxable benefits, such as health insurance, thereby providing a funding mechanism by which employees may pay for the benefits they choose on a pre-tax basis.
a comprehensive benefits program that empowers employees to customize their medical, dental, life insurance paid by government program vision and life insurance plans
a formal and written employee benefit plan which is offered to all participants who are employees
an employee benefit plan in which the participants may choose among two or more benefits consisting of cash and qualified benefits
an inexpensive addition to the employee tax benefit plan
a payroll deduction plan that allows employees to take advantage of certain IRS laws
a plan in which employees can elect to pay for qualifying benefits on a tax-free basis
a plan under which employees are provided with the
a pre-tax fringe benefit that enables both the employer and the employee to purchase health care and day care on a pre-tax basis, thus reducing their total costs for benefits
a term for a benefit plan under which employees can select the benefits they want and can pay on a pre-tax basis rather than after-tax
a term used to describe an employer-sponsored plan that offers employees a choice of benefits
a win-win situation for both the employer and employees
a written benefit plan maintained by an employer for the benefit of its employees
a written benefit plan offered by an employer in which all participants are employees and can choose, cafeteria-style, from a menu of qualified benefits
a written benefit plan under which employees may choose between receiving cash and certain nontaxable benefits such as health coverage or dependent care
a written plan that allows a company's employees to choose between receiving cash or certain qualified benefits
a written plan that allows employees to choose between receiving cash or taxable benefits instead of certain qualified benefits for which the law provides an exclusion from wages (deferral)
a written plan that is funded by employee contributions on a pre-tax salary reduction to provide coverage for specified expenses, including medical expenses
a written plan under which all participants can chose between two or more benefits consisting of cash and statutory nontaxable benefits
a written plan under which employees may choose among two or more benefits consisting of cash and qualified benefits
Please see Flexible Spending Accounts.
A plan that offers adjustable benefits under Interal Revenue Code section 125. Employees choose their benefits from a menu of cash and benefits, which can be paid for with pretax deductions from wages if they qualify.
Arrangements under which employees may choose their own benefit structure. Sometimes these are varying benefit plans or add-ons provided through the same insurer or 3rd party administrator, other times this refers to the offering of different plans or HMOs provided by different managed care or insurance companies.
A cafeteria plan is not a typical employee benefit plan. It does not provide benefits directly to employees; rather, it serves as a vehicle for employees to elect benefits under other plans and to finance their elections. Cafeteria plans must comply with the requirement in Code Section 125. Cafeteria plans give employees an opportunity to choose among a menu of benefits consisting of cash and certain nontaxable benefits (for example, health insurance benefits). In the simplest form of cafeteria plan, the employer contributes an amount to the plan that the employee can spend to buy various benefits. If the employer contribution exceeds the cost of the employee's chosen benefits the employee may take the excess cash as additional taxable wages, assuming the plan allows such a cash-out option. If the employer contribution is insufficient to pay for the cost of the employee's chosen benefits; the employee can reduce his salary to pay for the excess cost on a pre-tax basis.
A plan in which the employer offers a variety of different benefits, and the employees choose those benefits that fit their individual needs. Examples of benefits offered in the cafeteria include group-term life insurance, dental insurance, disability and accident insurance, reimbursement of healthcare expenses, and the like.
A system where there is a menu of benefits employees can choose from for participation. Group life insurance is many times part of a cafeteria plan for small businesses.
In this plan employees may chose from a "menu" of two or more benefits.
Generic term for an employee benefit plan that allows employees to select among the various group life, medical expense, disability, dental, and other plans that best meet their specific needs. Also called flexible benefit plans.
(see Flexible Benefit Plans)
A type of employee benefit arrangement that allows employees to pick and choose the benefits they want from an array of offerings (as one selects foods when going through a cafeteria line). This contrasts with employee benefit plans in which every employee receives the same benefits, regardless of individual needs or situations.
an employee benefit plan that gives employees a choice among cash and one or more qualified benefits, such as health insurance, group term life and dental benefits.
A tax qualified arrangement under which participants may elect a combination of various taxable and tax-preferred forms of compensation, often including but not limited to cash, health insurance, 401(k) plan contributions, life insurance, child care, and additional vacation days. Also called a flexible benefit plan or Section 125 plan after the section of the tax code that allows for the creation of flexible benefit plans.
A type of employment benefits plan in which the employee selects benefits from a "menu" up to a specified dollar amount.
A benefit program in which you are given a certain amount (in dollars or points) to be used toward your choice of benefits. You then select (cafeteria style) which benefits you would like from a list provided by your employer. Also known as "flexible benefits."
A benefits program in which employees are offered a choice between cash and one or more other fringe benefits, which allows employees to select the benefits most meaningful to them.
Plan under which participating employees may choose between at least one taxable benefit (usually cash) and at least one non-taxable benefit. These benefits are funded with after-tax employee contributions.
An employee benefit plan where employees use pretax salary or wages to create their own customized benefits package. Employees may be able to take cash (which becomes taxable) for unused credits or convert more pretax dollars to pay for more benefits. Also known as a flexible benefits plan.
See flexible benefits plan.
A plan maintained by an employer that allows employees to select from a menu of taxable and nontaxable benefits.
Program that allows employees to design their own benefit package by selecting from a number of benefit options that best meet their needs.
A flexible benefits plan that generally offers a choice of two or more qualified benefits or the option of cash.
A benefit plan maintained by an employer for the benefit of the employees under which each participant has the opportunity to select the benefits they desire. Certain minimum choices and nondiscriminatory rules apply.
A plan wherein an employer offers a choice of nontaxable fringe benefits from which participating employers may select. The plan may be funded with employer contributions, employee contributions (usually through salary reduction agreements) or a combination of both. Also called a section 125 plan or a flexible spending account.
A flexible fringe benefit plan that gives employees choices of coverage desired
A flexible-benefit plan offered by many employers that gives workers a certain number of credits and a menu of benefit options on which to spend them. The list may include medical coverage, life insurance, disability coverage, vacation days and dental care. Employees who don't want a particular benefit can spend more on another, or receive the difference in cash.
An arrangement under which you may select your own benefits. Sometimes you are offered varying benefit plans or add-ons provided through the same insurer, other times this refers to plans offered by different insurers.
A plan that offers a choice between two or more qualified benefits or a choice between cash and one or more qualified benefits and which complies with Section 125 of the IRS Code (also known as flexible benefit plan, or flex plan).
An employee benefit plan that gives each employee several choices as to the types and/or amounts of group benefits. Also known as a flexible benefit plan.
A cafeteria plan is a type of employee benefit plan offered in the United States pursuant to Section 125 of the Internal Revenue Code. Its name comes from the earliest such plans that allowed employees to choose between different types of benefits, similar to a cafeteria.