How will the changes in simple cafeteria plans work for small business owners?
The reform law makes it easier for small employers to offer cafeteria plans by carving out a safe harbor from nondiscrimination requirements. This change relaxes participation restrictions so that small employers can provide tax-free benefits, including healthcare coverage, to their employees. The self-employed are also considered qualified employees. The change exempts employers who make contributions for employees under a simple cafeteria plan from pension plan non-discrimination requirements applicable to key employees and those who are highly compensated.
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- How will the changes in simple cafeteria plans work for small business owners?
