Taking Another Look at Cafeteria Plans

LCW Partner Heather DeBlanc weighed in on cafeteria plans—optional spending accounts and insurance benefits that meet health and caregiving needs—in the Oct. 5 SHRM piece “Taking Another Look at Cafeteria Plans.” Heather states that, “Cafeteria plans are a necessity if your employees are making salary-reduction elections so that a portion of their salary, pretax, is directed toward [health or other insurance] premiums and tax-advantaged spending accounts. In order for an employee to divert salary to pretax premiums, a cafeteria plan document must be in place and approved by the governing body of the employer.” Please read the full article here.