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A cafeteria plan or cafeteria system is a type of employee benefit plan offered in the United States pursuant to Section 125 of the Internal Revenue Code. [1] Its name comes from the earliest versions of such plans, which allowed employees to choose between different types of benefits, similar to the ability of a customer to choose among available items in a cafeteria.
Approximately 93% of the working population in the United States are employees earning a salary or wage. [1] Typically, cash compensation consists of a wage or salary, and may include commissions or bonuses. Benefits consist of retirement plans, health insurance, life insurance, disability insurance, vacation, employee stock ownership plans, etc.
Certain employee benefits. Non-taxable benefits include group health insurance, group life insurance for policies up to $50,000, and certain fringe benefits, including those under a flexible spending or cafeteria plan. [35] Certain elective deferrals of salary (contributions to "401(k)" plans).
Health care jobs are in demand in 2025 — one of the top roles can pay $385,000. The health sector holds many of the best job opportunities for workers in 2025, due to factors like high labor ...
This coverage period is usually defined as the "period that you are covered" under the cafeteria plan during the "plan year." The "plan year" is commonly defined as the calendar year, but could also include the grace period of Jan 1 – March 15 of the following year.
For 16 years, Sarah Fiacco relished her job as a stay-at-home mom, never missing a recital or basketball game. Now she’s finding purpose as a lunch lady.