 NEWSLETTERS Volume 2, Issue 2 .................... April 2001 A great way to boost employee morale Setting up a Cafeteria Plan may be a good choice for both the company and your employees if the employees pay any portion of their health insurance premium. If you’re currently not offering your employees a Cafeteria Plan, you may want to consider offering one. With a Cafeteria Plan in place, you can save the employee federal, state and payroll taxes (FICA), as well as saving the company payroll taxes. Cafeteria Plans allow pre-tax savings for health insurance premiums, medical expenses not covered by health insurance and for employees who have dependent care expenses. By implementing a Cafeteria Plan, your employee’s disposable income will rise because he will be paying for these ongoing expenses with pre-tax rather than after-tax dollars. Setting up a Cafeteria Plan is easier than you might think. If you currently do not offer Cafeteria/Section 125 Plans, but are interested in looking into the possibility of offering one in the future, please call Administrative Retirement Services, Inc., and we will be happy to answer any questions you may have.
© Administrative Retirement Services, Inc. 2001 Published by Administrative Retirement Services, Inc., Copyright 2001 by Administrative Retirement Services, Inc. Reproduction in whole or in part is prohibited except by written permission. All rights are reserved. Information has been obtained by Administrative Retirement Services, Inc. from sources believed to be reliable. However, because of the possibility of human or mechanical error by our sources, Administrative Retirement Services, Inc. or others, Administrative Retirement Services, Inc. does not guarantee the accuracy, adequacy, or completeness of any information and is not responsible for any errors or omissions or the result obtained from the use of such information. Readers should seek specific advice before acting with regard to the subjects mentioned here. |