What benefits can be offered through a Cafeteria Plan to help lower the employee’s gross taxable income?
A. Benefits that can be offered through a Cafeteria Plan are Health, Dental, Short Term Disability, Cancer Plan, Flexible Spending Account, Child Care Spending Account, and Voluntary Life. The premium for the voluntary life benefit may be split up between pre-tax and post-tax deductions depending on the benefit amount being selected. In some cases, the voluntary life benefit can only be offered as a post-tax deduction.
Related Questions
- If an employee makes contributions into the Self-Funded Leave of Absence Plan, will it affect their income, benefits, and taxes?
- Are disability benefits taxable if I pay the premium through a Section 125 cafeteria plan?
- What is the tax treatment of benefits offered under a discriminatory cafeteria plan?
