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Cafeteria Plans make it easy for the employer to present attractive benefits options to their company’s prospective talent. They are called “cafeteria plans” because they allow employees to pick and choose from a selection of different benefits, just like in a buffet-style cafeteria. But while a cafeteria plan offers the employee a well-balanced choice of benefits, it also helps the employer save. That’s right, it’s tax free. Normal employee benefits plans cannot take advantage of this tax saver, so that certain high cost life insurance policies often come with an increased tax rate. The cafeteria plan, however, includes these policies under its tax-free umbrella. Yet the wisdom of a cafeteria plan goes far beyond the up front savings. It gives the employee a sense of choice, ultimately creating a more happy and dedicated staff. It works by giving the employee a predetermined amount of money – or points – which can be used to buy up the benefits specific to his or her needs. These can include dental, health, life, sick leave, vacations, accidental death, disability and disbursement coverage. Due to the high level of employee satisfaction, it is important to budget a cafeteria plan system that is sustainable throughout the years.


Online Employee Benefit Plan Administration
Online employee benefit plan enrollment specializing in 401k retirement and Section 125 Cafeteria plans. Compare, improve and administrate your business' employee benefit plan ...

Employee Benefits Administration
Offers a stunning overview of the role of the Human Resource professional in administering employee benefits. Every manager in charge of benefits administration should visit this website. Highly recommended.

Cafeteria Plans Seminar
The Employee Benefits Institute of America LLC (EBIA) publishes employee benefits reference manuals and presents employee benefits seminars.