The Jacobs Company
Employee Benefit Plans & Services
Cafeteria Compensation Plans
 IRC Sec. 125
 
Cafeteria Plans (also called "Flexible Benefit Plans") allow participating employees to choose among two or more benefits consisting of cash and "qualified benefits." IRC Sec. 125(d)(1)(B)

There is no need to change current benefit programs.  If the employer is unable to pay for fringe benefits, the employee can enter into a salary reduction agreement with the employer.  The employer then uses these funds to pay for the employee's benefits.

This allows the employee to pay for his or her own benefits with pre-tax dollars.

How is the Employer Benefited?
Some "Qualified Benefits" Which Can Be Added, Include
Benefits Which are Specifiacally Excluded, Include
Plan Requirements
Discrimination


Please refer to our Health Insurance Section as we are developing the Employee Benefits Section

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This document was last modified on July 26, 1999

Copyright ©1999, The Jacobs Company, All Rights Reserved