What remuneration under a cafeteria plan is not subject to FICA, FUTA, Medicare tax or income tax withholding?
Generally, qualified benefits under a cafeteria plan are not subject to FICA, FUTA, Medicare tax, or income tax withholding. However, group-term life insurance that exceeds $50,000 of coverage is subject to social security and Medicare taxes, but not FUTA tax or income tax withholding, even when provided as a qualified benefit in a cafeteria plan. Adoption assistance benefits provided in a cafeteria plan are subject to social security, Medicare, and FUTA taxes, but not income tax withholding. If an employee elects to receive cash instead of any qualified benefit, it is treated as wages subject to all employment taxes. For more information, see Publication 535, Chapter 5 or Publication 15-A .
Related Questions
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- What remuneration under a cafeteria plan is not subject to FICA, FUTA, Medicare tax or income tax withholding?
- Are employee’s pre tax contributions to a qualified cafeteria plan subject to withholding income tax?
