The Cafeteria Plan Essay

641 words - 3 pages

Benefits are a big deal when trying to decide what company you want to work for, salary is the most important benefit but you should consider other benefits also. Some companies have a benefits package called the cafeteria plan, this plan allows employees to pick from a group of benefits such as, medical, accident, disability, vision, dental and group term life insurance. There are advantages and disadvantages of a cafeteria plan for both the employer and for the employee, but over all the cafeteria plan is one of the most important packages employers can offer to it's employees.Advantages to the employers for offering a cafeteria plans is to improve employee morale and to create a more competitive recruitment offer. This cafeteria plan also offers the employer way of getting a big tax break. The employee's don't pay as much taxes so the ...view middle of the document...

In addition, it gives the employees the power to choose the benefits that meet their individual needs.Disadvantages for the employee to take part in a cafeteria plan are that newly hired employees must sign up for a section 125 cafeteria plan within the first 30-60 days of employment. The only other time the employee can make changes is during the open enrollment because it works on a calendar year, so employees cannot add, drop or change benefit elections at any other time of the year, except in cases of life changing events. Such as change in family status, marriage, birth, divorce, or death or loss of employment. You also have to consider this when making your decision, when you redirect taxable income away from Social Security this could result in not having as much Social Security benefits at retirement. Since the employer bears, the entire cost of all tax-free benefits in a flexible benefit plan there is a cap on the total benefits any one employee may elect for a plan year.A cafeteria-style benefits plan is one of the most valuable programs an employer can offer to its employees. This is a great tool that can be used to manage rising health care costs. A cafeteria plan defined by section 125 of the IR code allows each employee participant to select between cash and one or more qualified nontaxable benefits. Cafeteria plans give employees the freedom to construct their own benefits program to fit individual or family circumstances. Reason to consider cafeteria plans include: They give employees choices from among a wide variety of nontaxable employee's benefits. Employees can choose or reject benefits as needed. As a result, resources are better used. They give quality employees incentive to stay. They give the employer a positive differentiating factor when recruiting new employees.

Other Essays On The Cafeteria Plan

Digital Television In India Essay

3046 words - 13 pages it anticipates that all TV sets will be equipped with decoder boxes. Doordarshan has asked TV set manufacturers in India to provide a plan for the manufacture of decoder boxes."[7]What does it mean for customer? Full declaration Added features like Pay Per View - now consumers can view sporting events, movies and other hit programs at their convenience. All they need to do is pay a fee and avail of the content Video on

project management- homework help for chapter 1 - west texa atm - homework help

5683 words - 23 pages quasi-governmental agency. Benefits included six programs which accounted for time-intensive processes such as “cafeteria plan,” options enrollment period where information is dispersed to assist employees in plan selection, and retirement accounts. End-User computing at BRECI: The Ordeals of a One-Person IS Department by Moffitt, K. Idea Publishing Group. IT5563, 11 pages (setting: US) The intention of the case study is to show an unsuccessful

Research Of Investment Banks

8984 words - 36 pages sell… But they rarely urge investors directly to sell the stocks they cover. One study questioned analysts' candor by asking "How could American shareholders and pension plan beneficiaries lose four trillion dollars in the NASDAQ when only 1% of analysts' recommendations were sell?" After the precipitous decline in equity markets in 2000, Congress is asking the same question, and the House Subcommittee on Capital Markets is investigating

This Is A Screenplay That My Friend Gave Me. Love It!!

7950 words - 32 pages in your hand lay on a bed then pretend ur having a nightmare about cookies and yell " COOKIE!! COOKIE!!!! NOOOOOO!!!!" Then start rolling around 114. Make evil eyes at someone and start whispering, "I'm the little girl from the well... I've been waiting..." 115. Go to the cafeteria area and buy frys. Then stand by the door and when people walk through throw the frys above their head like there getting married 116

Persuasive Essay Gay And Lesbi

623 words - 3 pages someone is born producing hormones of the opposite sex, shouldn't we have compassion, instead of hating and labeling them as 'morally wrong'? Why are so many people homophobic? Being gay is human, not wrong.Many people say that gays and lesbians are not equal to the straight community. They are wrong. There are hundreds of gay and lesbian foundations and activist groups around the country. They are not fighting for gay rights, but for human rights

Mark Mcgwire Vs Sammy Sosa

1206 words - 5 pages Although a lot of people play baseball two names that come to mind are Mark McGwire and Sammy Sosa. McGwire and Sosa are very good hitters but are also so very different hitters. McGwire and Sosa are very great athletes who share apart of baseball history. McGwire and Sosa are good players but off the field they are very charitable individuals. McGwire and Sosa have many similarities and differences. IT is hard to compare Mark McGwire and

Master and slave. an analysis

495 words - 2 pages Each of the characters in The Tempest finds themselves in bondage. However, by the end of the story, the same characters are set free from whatever enslaves them. A few characters one can see enslaved are Prospero, Miranda, Ariel, and Caliban.Prospero is in bondage to his magic. Since his exile by his brother from his dukedom in Milan, he has had but a few books to help pass the twelve long years. During this time, he becomes very proficient in

Methods Of Therapy

2480 words - 10 pages METHODS OF THERAPY Therapy, from a psychologist's viewpoint, has many different meanings. It can be physical or psychological, or even both. In this paper, several different aspects of therapy will be discussed. First the word therapy will be defined more clearly, and then psychotherapy and how it differs from other interactions yet is also similar. Next therapy will be examined from the Psychodynamic, Cognitive and Humanistic-Existential points

Phineas And Gene A Comparitive

1538 words - 7 pages Phineas and Gene: A Comparative Study Throughout the story, Phineas and Gene, the two main characters, showed a number of contrasting traits. Phineas was a confident, non competitive, naive, irresponsible, and unintelligent person throughout the story, whereas Gene, Phineas' roommate, was insecure, competitive, mature, responsible, and intelligent throughout the story.Phineas had a confident nature in everything he did. As Phineas and Gene first


2008 words - 9 pages Mafia. What does this word mean? The actual members of the Mafia aren't even sure where the word first originated or what it really means. One of the theories as to where the word came from is from Sicily, where people would yell " Morte alla Francia, Italia anela!" (Death to France, Italy groans!), therefore forming the acronym MAFIA. Others claim the word derived from the battle cry of rebels who slaughtered thousands of Frenchmen after a

Baseball Strike

1354 words - 6 pages GAME OVER! "I don't like it. People won't be able to come to these games anymore, and I don't like that". A sad nine - year - old fan voices his concerns on the 1994 major League Baseball strike. The '94 baseball season has come to an abrupt end. Players have ceased play because they feel they are being treated unfairly with the owner's plan to impose a salary cap. Owners are finding it difficult to come to terms with their own disagreements

Similar Papers

Critically Analyse The New Reward Scheme For A Advertising Company Level 6 Undergraduate Report

974 words - 4 pages outlined, along with recommendations and an action plan on how they can improve their reward scheme. Problems with current reward scheme: Unfair rewards scheme Majority of the workforce disapprove with the current reward scheme, due to it making them feel undervalued. This may have derived from only half of the reward scheme effecting the majority of the workforce (annual bonus for all staff) and the other half of the reward scheme only benefiting

What Does Bolek Think Of Wiesenthal’s Response? Do You Agree With Him Or Wiesenthal? Why? Holocaust Lit Short Answer

2784 words - 12 pages reporting requirements. W—Employer contributions (including amounts the employee elected to contribute using a section 125 (cafeteria) plan) to your health savings account. Report on Form 8889, Health Savings Accounts (HSAs). Y—Deferrals under a section 409A nonqualified deferred compensation plan Z—Income under a nonqualified deferred compensation plan that fails to satisfy section 409A. This amount is also included in box 1. It is subject to an

An Analysis Of How Adolescents Form Friendships University At Albany Research Paper

1927 words - 8 pages Sapon 1 “Why Are All the Black Kids Sitting Together in the Cafeteria?” An Analysis of How Adolescents Form Friendships In American schools the ethnic composition has shifted drastically in the last decade and urban areas have seen the changes more than any other area (Echols and Graham 462). With this shift in demographic it is to be assumed that the nature and behavior of adolescents in these new environments would change. More diversity

The Brady Bill The Licence To Carry A Gun

1821 words - 8 pages bear arms was important enough to put it ahead of the rights of the accused, the states rights, and the unenumeated rights. Gartner, the noted expert on the use of the English language, is not in any position to interpret the Constitution, or to propose any plan that would deny any citizen the right to own a gun.Advocates of liberalizing the concealed weapons laws sharply disagree. "They counter that people willing to undergo a background check