What components can be included in a cafeteria plan? What types of employee compensation plans do you recommend for the company that you are evaluating? Overall, given the personnel make-up of a firm, evaluate an employee benefits plan.
Why should a corporation be concerned about providing benefits for its employees? Hopefully that is not too basic of a question but if it is, we can just use it as a launching point for the discussions.
Before getting into "cafeteria plans," what are some other types of benefits that an employer might offer employees?
A cafeteria plan (sometimes called a flexible benefit plan) is a benefit plan that allows an employee to have some choice in designing his or her own benefit package by selecting different types and/or levels of benefits that are funded with nontaxable employer dollars.
Benefits - Benefits which can be offered in a cafeteria plan include most benefits ordinarily resulting in no taxable income to employees if provided outside of a cafeteria plan. Some examples are: health, dental and life insurance, accidental death and dismemberment coverage, disability coverage and vacation leave. One exception, group life insurance in excess of $50,000, which is normally taxable, can be included. Although the inclusion of life insurance coverage is permitted, the amounts in excess of $50,000 continue to be taxable.
One type of option available in a cafeteria plan is a flexible spending arrangement (FSA), or Flexible Spending Account, as they are commonly called, is one of a number of tax-advantaged ...
This solution provides the learner with an understanding of a cafeteria plan when choose employee benefits.