Mississippi Cafeteria Plans

Cafeteria Plans for Your Employee Benefits

In addition to traditional employee benefits plans like health insurance, cafeteria plans are also a great option to offer to your employees. A cafeteria plan is a type of benefit plan that allows employees to choose between different types of pre-tax benefits, offering more flexibility and customization to meet individual needs.

Our partnerships enable your employees to secure a core of basic benefits, and then choose from several levels of supplemental coverage or different benefits packages to achieve personal goals or meet differing needs.

Interested in learning more about cafeteria plans? Contact us today to discover what we can provide for your business!


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Cafeteria Plans Services FAQ

What is a cafeteria plan?

A cafeteria plan is a type of employee benefit plan offered in the United States pursuant to Section 125 of the Internal Revenue Code. Cafeteria plans allow employees to choose between different types of benefits, similar to choosing items in a cafeteria. 

A cafeteria plan is also referred to as a flexible benefits plan or Section 125 plan. It's a great option for employee benefits plans because of its flexibility.

What's included in People Lease's cafeteria plans?
  • Flexible spending plan / flexible spending accounts (FSA)
  • Unreimbursed medical and dependent care expenses
  • Accidental death and dismemberment coverage
  • Disability coverage and vacation leave
  • Group life insurance less than $50,000 ( amounts in excess of $50,000 continue to be taxable)
  • Other normally accepted Cafeteria Plan services as accepted by the IRS
Are contributions to a cafeteria plan made pre-tax or after-tax?

Contributions to a cafeteria plan are made pre-tax. Section 125 of the Internal Revenue Code (IRC) specifies that cafeteria plans are exempt from the calculation of gross income for federal income tax purposes. No federal or Social Security taxes will be deducted.

Please note that for some benefits, such as group life insurance benefits that exceed $50,000 or adoption assistance benefits, will still require employers to withhold both Social Security and Medicare taxes.

What is a Flexible Spending Account (FSA)?
A flexible spending account (FSA) is a type of tax-advantaged financial account. Most cafeteria plans include flexible spending accounts focused on medical and dependent care expenses, although some plans may offer accounts for other qualified expenses such as adoption assistance.
What are the most popular things an FSA covers?
  • Childcare services
  • Chiropractic care
  • Contact lenses
  • Co-pays and deductibles
  • Drugs/medicines (prescribed)
  • Eye examinations/vision expenses
  • Hearing aids/batteries/repairs
  • Orthodontia
  • Physical therapy
  • Psychiatric care
  • Screening tests
  • Surgery

The Value of Cafeteria Plans

Take advantage of tax-free money

Major Tax

Contributions to a cafeteria plan are made pre-tax, employees can lower their taxable income and reduce income, Medicare, and Social Security taxes.

Employers get flexibility in designing plans

in Designing Plans

Employers can set up cafeteria plans however they'd like, as long as they are compliant with federal
laws and regulations.

Employees decide how much to contribute

More Options for Employees

A cafeteria plan can include more options such as insurance benefits, retirement plans, and benefits that help with life events such as adoption.


Get Your Free Cafeteria Plan Quote

Cafeteria Plans are a great type of employee benefits plan to offer to your employees. Providing a Cafeteria Plan can allow your employees more flexibility in choosing from a variety of benefits and ultimately save lots of money, which is beneficial for improving employee morale and satisfaction in the long term.

However, designing and administering a cafeteria plan can be more complex and require more time. That's where we come in to help!

Schedule a free consultation with one of our experts and start discovering options for your cafeteria plan offerings.


Request a Free Consultation

Learn More About People Lease Benefits

Mississippi Group Health Insurance
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Mississippi Group Dental Insurance
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Mississippi Group Vision Insurance
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Mississippi Supplemental Benefits
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Retirement Plans
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Mississippi Flexible Spending Plans
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Contact Us

Interested in People Lease's software and services for your business? Complete the form below and a member of our team will reach out shortly. Or give us a call us at 1.800.723.3025