A cafeteria plan is a separate written plan maintained by an employer for employees. A plan is a cafeteria plan if it meets the specific requirements and regulations of Section 125 of the Internal Revenue Service (IRS) Code. Cafeteria plans provide employees who participate the opportunity to receive certain benefits on a pre-tax basis. Cafeteria Plans can be an attractive benefit for employers to offer their employees, and we work
What is the Employer Mandate?
One of the provisions of the Affordable Care Act (ACA) is the employer mandate. Employer Mandate Companies with 50 or more full-time or full-time equivalent employees must offer full-time employees and their dependents (i.e., children up to age 26) coverage that is affordable* and provides minimum value**. * affordable = employee pays no more than 9.5% of his/her household income ** minimum value = plan pays at least 60% of
IRS Says Employers Can’t Give Employees Money and Send Them to the Exchange
A recent ruling by the Internal Revenue Service (IRS) addresses a growing trend among employers who, in an effort to avoid the rising cost of providing health insurance, have opted to contribute money towards their employees’ individual health insurance premiums rather than provide group coverage for their workforce. Employees then use that money — which does not count as income and therefore is tax-free — to purchase coverage in the
