Is a cafeteria plan reportable and taxable?
Contributions to a cafeteria plan paid by an employee and/or employer for qualified benefits are not reportable if such payment would not be wages for Federal Unemployment Tax. These qualified benefits can be payments to an accident and health plan, group term life insurance premiums and dependent care assistance benefits up to the limits set by the Federal Unemployment Tax Act.
Related Questions
- Do the rules of Section 125 affect whether any particular benefit offered under a Cafeteria Plan is a taxable or nontaxable benefit?
- What benefits can be offered through a Cafeteria Plan to help lower the employee’s gross taxable income?
- Are disability benefits taxable if I pay the premium through a Section 125 cafeteria plan?
