Cafeteria Plans/FSA
Cafeteria plans, including Flexible Spending Accounts (FSA) have become increasingly important components of consumer-directed health care plans and popular vehicles for reducing ever-rising health care and dependent care costs.
Both employers and employees have much to gain from a Cafeteria plan, including reduced costs through tax savings and more responsible health care spending, plus increased health, productivity, and retention.
Corporate Benefits Network is a leader in Cafeteria plan design and administration services for large and mid size employers.
We have the experience to help employers implement and maintain a successful Cafeteria program that allows employers to customize benefits and save money. Employers that sponsor a Cafeteria plan Internal Revenue Code (IRC) Section 125 can allow employees who are paying medical expenses, insurance premiums, dependent care expenses, and transportation expenses to do so on a pre-tax basis. A Cafeteria plan can create sizable savings for both the employer and employee.
All Cafeteria plans require the following documentation:
- Corporate Resolution – a written document that describes an action taken by the board of directors of a corporation. This document generally will authorize an individual to act on behalf of the corporation.
- Plan Document – contains all the legal requirements and controlling provisions of the plan.
- Summary Plan Description (SPD) – condensed from the plan document; details for participation in the plan.
Please note – that the IRS requires that SPDs be distributed to all plan participants within 90 days of enrollment. For your convenience, we will provide an online copy of your company’s SPD on the custom web page that our Agency provides to you.