| Cafeteria Plans Looking for a way to expand your employee benefits package, but not sure how to accommodate everyone's needs? Ever wondered if that "perfect" employee benefit package really exists? Let REPTECH introduce you to Cafeteria Plans! A Cafeteria Plan is a unique plan authorized by section 125 of the Internal Revenue Code that lets your employees choose the benefits they want from a variety of options, including any combination of the following: - Health insurance
- Group term life and disability insurance
- Dental insurance
- Day care expense for dependents (adults and children)
- Medical supplies and expenses not covered by insurance
Each participating employee selects the benefits package he or she wants from a list, or menu, of qualifying benefits. The employees redirect a portion of their pay, pre-tax, into their Cafeteria Plan accounts, where the funds are "banked" by the employer. Then, when the employee incurs an expense for one of his or her selected benefits, the employer reimburses the employee for that expense from his or her "banked" account.  back to top For the participating employees, the main advantage of a Cafeteria Plan is that the employee gets to pay for benefits with pre-tax income rather than after-tax net pay. Cafeteria Plan contributions are deducted from the employee's salary before any Federal, state, or local taxes are applied (including Social Security taxes), which reduces the employee's tax burden. This means that the employee saves money while getting to select the exact benefits he or she needs. For the employer, benefits of a Cafeteria Plan include the following: - Because Social Security taxes are not applied to funds directed into the Cafeteria Plan, the company saves money.
- Insurance premiums may be reduced for policies that are based on employees' taxable salaries, such as worker's compensation and disability.
- Company health insurance costs could be lowered by combining a Cafeteria Plan with other health plan coverage.
- The company can earn interest on the balances in the Cafeteria Plan throughout the year, which may be used to offset administrative cost. back to top
REPTECH can help you with all phases of your Cafeteria Plan. We can: - Design a plan that meets your company's needs.
- Prepare not only an employee handbook and supporting informative literature, but also create all necessary forms for your plan.
- Introduce and explain the plan to your employees.
- Administer your plan, including:
- Processing claims.
- Preparing account statements.
- Performing nondiscrimination testing.
- Preparing annual IRS filings. back to top
Contact us today and put REPTECH's experienced staff to work for you! | 
