The design and operation of cafeteria plans: the flexibility of benefits choice can enhance employee moral and after-tax income.

From: The Tax Adviser | Date: October 1, 1993| Author: Hamill, James R. | Copyright information

Cafeteria benefit plans, because of the flexibility with which they can be structured, can be implemented at a relatively low cost and can provide higher employee morale and after-tax income. Cafeteria plans offer participants the choice between the benefits and cash without any constructive receipt problems. The result is lower social security taxes for employee and employer, higher after-tax income for employees and more flexibility for everyone. The designing and structuring of cafeteria p...

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