With the upward trend in employee benefit costs, especially health care costs, cafeteria plans can be a solution to providing these benefits at a reduced cost to the business and its employees. Cafeteria plans are becoming an increasingly popular way of providing employee benefits because both employers and employees find them advantageous and they are relatively easy to administer. Employers benefit by maximizing tax deductions as well as reducing payroll costs. Employees are able to increase their take-home pay by paying for benefit coverage on a pretax basis.
To qualify for special tax treatment, a cafeteria plan must meet very specific requirements. The plan must be in writing and contain certain information that is set forth by the IRS. PPC’s Guide to Cafeteria Plans provides easy-to-understand coverage of the unique requirements for establishing and operating a cafeteria plan. It includes information on permitted and prohibited benefits, enrollment, nondiscrimination testing, and disclosure requirements, as well as sample plan documents and checklists that can be used to quickly and efficiently monitor a plan’s compliance with the various cafeteria plan requirements. The Guide also contains marketing tools, letters, and step-by-step guidance that can help practitioners sell cafeteria plan implementation and operation engagements.
Other features of this Guide that make it a Must Have include: