Hide Topic Navigator
Flexible Benefits/ Cafeteria Plans
National Summary
What are flexible benefits? Flexible benefit plans, or cafeteria plans, generally allow employees to choose between cash compensation, tax-exempt benefits, and taxable benefits without the choice itself resulting in the inclusion of the tax-exempt benefits in taxable income. Flex or cafeteria plans are authorized by the Internal Revenue Code (IRC Sec. 125) and are often referred to as Section 125 plans. These plans enable employers to provide employees with an additional benefit package at virtually no extra cost while reducing both the employer's and the employees' tax bills. Flex plans allow employers to upgrade and customize the array of benefits offered while keeping a handle on total benefit costs. Flex plans range from the most simple (that merely pay group insurance premiums with pretax dollars) to the most complex (that provide benefit credits and a choice of types and levels of benefits that may be chosen and paid for on either a pretax or a posttax basis).
Summary for [Your State]

Related Topics

Resource Centers
Resources
TopicTypeTitleDateState
105466news.aspxFlexible Benefits/ Cafeteria PlansNews 5 Things Your Employees Need to Know About FSAs for Open Enrollment 09/30/2019National
2652state_comparison_charts.aspxFlexible Benefits/ Cafeteria PlansGuidance Advantages and Disadvantages of Flexible Benefits  National
102420timesavers.aspxFlexible Benefits/ Cafeteria PlansChecklists Flexible Benefits Checklist  National
11022analysis.aspxFlexible Benefits/ Cafeteria PlansAnalysis Flexible Benefits/ Cafeteria Plans  National
CT-WEB02
Copyright � 2019 Business & Legal Resources. All rights reserved. 800-727-5257
This document was published on http://HR.BLR.com
Document URL: http://hr.blr.com/HR-topics/Benefits-Leave/Flexible-Benefits-Cafeteria-Plans