A Cafeteria Plan  is a tax favored employee benefit plan, authorized by the Internal Revenue Service. The concept of the Cafeteria Plan was established in the 1970's and formalized in 1986.

Authorized under Section 125, the Cafeteria Plan establishes a close relationship between the employer and its employees.

What is a Cafeteria Plan and what are the general requirements to install this plan?

A written plan designed exclusively for the employee

A plan that does not discriminate

Allows employees to enroll for non-taxable benefits

Employee benefit selections to be irrevocable

Reduces the employee's taxable salary

Reduces employer FICA (on payroll reductions)

Must submit annual filing documents to the IRS

What Can be Included in a Cafeteria Plan?

Hospitalization premiums

Term Life (group or 5 year term)

Disability premium (not recommended)

Supplemental medical premium

Dependent Care Expense (day care for qualified employees)

Unreimbursed medical and dental expense

The Omega Financial Group and its national association of brokers provides employers of all sizes turn key Cafeteria Plan service.

Call today to see why you should utilize the OneChek System to manage your Cafeteria Plan.

(The Omega Financial Group does not render tax advice to employers. Please refer to tax counsel for details specific to your situation.)