Healthier Workforce
Term

Cafeteria plan.

A formal employer-sponsored benefit plan, established under Section 125 of the IRC, that lets employees choose between cash compensation and qualified pre-tax benefits.

In the context of EHP

A cafeteria plan is the legal vehicle that allows an employee to make the pre-tax SIMERP election. Without a properly documented cafeteria plan, the FICA savings can't be claimed. The plan document and Summary Plan Description are provided as part of the EHP onboarding.

Related terms

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