A cafeteria plan – also known as a Section 125 plan, after the portion of the IRS code that regulates the plans – lets employees redirect part of their salaries and wages to pay for certain benefits.

The IRS recently published two items of guidance to allow temporary changes to cafeteria plans. As a result of the guidance, employers may allow employees to make mid-year benefit election changes to ...

On May 12, the IRS issued Notice 2020-29 “COVID-19 Guidance Under Section 125 Cafeteria Plans and Related to High Deductible Health Plans” and Notice 2020-33 “Section 125 Cafeteria Plans – ...

Understanding the complexities and nuances of insurance policies is rarely a simple task. This can be especially true of employer-provided healthcare plans, which offer many different types of ...

It’s common for employers to require employees to pay a share of premiums for many employee benefits. To take a bite of this cost-sharing requirement, many employers permit employees to pay for their ...

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Under IRC Section 6039D, an employer sponsoring a cafeteria plan was required to file an information return with the IRS. This return indicated the number of the employer’s employees, the number of ...

Participants in a cafeteria plan may choose among two or more benefits consisting of cash and qualified benefits. 1 A cash benefit includes not only cash, but a benefit that may be purchased with ...

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We collaborate with the world's leading lawyers to deliver news tailored for you. Sign Up for any (or all) of our 25+ Newsletters. Some states have laws and ethical rules regarding solicitation and ...

Because individual employee needs differ greatly, and because business competition demands across-the-board cost reductions, a flexible approach to benefits promises to satisfy both needs. While ...