Cafeteria Plans: A Menu of Non-Options for Small Business Owners
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Cafeteria Plans: A Menu of Non-Options for Small Business Owners
"Cafeteria plans are available across the board to large and mid-size companies, non-profits, schools, universities, and the federal government," said Subcommittee on Economic Growth, Tax, and Capital Access Chairman
Small Business Employees Put at a Disadvantage
"In addition to health insurance premium payments, those employers that sponsor Section 125 plans can make a number of other benefits available to employees, such as the Medical Reimbursement benefit as well as the Dependent Care benefit," testified
Benefits of Cafeteria Plans
"Section 125 of the Internal Revenue Code ("Code") regulates "Cafeteria Plans," which are tax favored methods for offering a variety of fringe benefits to employees on a pre-tax basis through a plan offered by an employer," said
3/4 of Small Business Owners Excluded
"While employees of most large and mid-sized businesses as well as non-profits, schools, universities and the federal government can take advantage of the valuable benefits provided by cafeteria plans, most small business owners are not allowed to participate in a cafeteria plan," said
Plans Could Provide Flexibility for Small Businesses
"Cafeteria plans allow employers to offer flexible benefits to their workers, at a reasonable cost to both the workers and the employers," explained
You can watch full video of today's hearing at: https://smallbusiness.house.gov/Components/Redirect/r.aspx'ID=473864-6806166 and read full testimony at: https://smallbusiness.house.gov/Components/Redirect/r.aspx'ID=473865-6806166.
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