Cafeteria Plans For Small Businesses

Cafeteria Plans For Small Businesses-62
The main advantage of the simple cafeteria plan over the traditional option is that it removes the obstacle of nondiscrimination requirements favoring highly compensated and key employees which disqualify many small businesses.Cafeteria Plans Defined Participants in cafeteria plans--governed by Internal Revenue Code Section 125--choose from a “menu” of benefits, hence the “cafeteria” label.

Section 125 cafeteria plan regulations requires allowing participants the option to choose from among at least one taxable benefit such as cash bonus, annual leave reimbursement, sick leave or paid time off, or severance pay, and one qualified benefit, the contribution of which is excluded from the employees gross income.

Common options for qualified benefits include Cafeteria plans allow employees to pay premium-only health insurance plans,and flexible spending accounts for out of pocket medical expenses and dependent care through payroll deductions and are exempt from tax.

Employees pay out-of-pocket flexible spending expenses upfront and submit a claim backed up by documentation for reimbursement.

Administration of a Section 125 cafeteria plan small business owners must pay adherence to is understanding the rules and regulations stipulated by the IRS.

As a licensed Third Party Administrator (TPA), my Cafeteria Plan is dedicated to providing your HR and benefits administration teams administrative relief from your plan's set-up through day-to-day administration to year-end testing.

Whether your benefits team needs help with Health Savings Accounts (HSA), Flexible Spending Accounts (FSA), Health Reimbursement Arrangements (HRA), or Qualified Transportation Plan (QTP), we will help keep your plan compliant, your employees happy, and your year-end smooth.Because the happiest employees make the happiest employers.Your business and your HR and benefits management teams deserve the specialized service we provide as a licensed Third Party Administrator.A popular method of providing employee benefits, a cafeteria plan is a written plan maintained by an employer for its employees under which participants receive certain benefits they choose on a pretax basis.Effective January 1, 2011, the Patient Protection and Affordable Care Act (ACA) provides eligible small employers with the option of a simple cafeteria plan.The employees invariably spend on such schemes anyway, and with section 125 cafeteria plans, the company and employee will save on taxes.One of the more little discussed elements of the Obama Care law is the creation of a streamlined system for small employers to offer pre-tax benefit plans to their employees.We take care of the details and allow your benefits team to be as involved or uninvolved as you choose in your plan administration. my Cafeteria Plan provides the best service, and value, to our participating employers and their employees.Our clients know they are in good hands when they choose us as their third party administrator.Our employees are very satisfied with my Cafeteria Plan's services…as the employer it is very refreshing and reassuring to know that you are working with a company who is solid on compliance.We feel confident that in an IRS audit we would be on the right side with my Cafeteria Plan!

SHOW COMMENTS

Comments Cafeteria Plans For Small Businesses

The Latest from superfrenchbulldog.ru ©