A Cafeteria Plan is a type of employer benefit offered pursuant to Section 125 of the Internal Revenue Code. These are also known as Flexible Spending Accounts (FSA).
This is a benefit provided by your employer which allows you to contribute a certain amount of your gross income to a designed account before taxes are calculated. These accounts are for insurance premiums, medical expenses and dependent care not covered by your insurance, from which you can be reimbursed throughout the plan year or claim period as you incur the expenses. A Cafeteria Plan allows you to reduce your gross amount you pay in Federal Social Security and some state taxes.
This is a benefit provided by your employer which allows you to contribute a certain amount of your gross income to a designed account before taxes are calculated. These accounts are for insurance premiums, medical expenses and dependent care not covered by your insurance, from which you can be reimbursed throughout the plan year or claim period as you incur the expenses. A Cafeteria Plan allows you to reduce your gross amount you pay in Federal Social Security and some state taxes.