What is a major disadvantage of a cafeteria benefit plan?
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What is a major disadvantage of a cafeteria benefit plan?
Employees who exceed their allocated spending amount pay a partial premium to their employer. So if Emma spends $1,000 over her allocated contribution, she pays a portion of that amount herself. The disadvantage of a cafeteria plan is it usually takes more time to administer and is typically more complex.
What are some pros and cons of cafeteria benefit plans?
Pros and Cons of a Cafeteria Plan
- Pay Less Tax. Employers do not pay FICA or FUTA taxes on salary reductions amounts.
- Address Employee Needs.
- Cost Control.
- Competitive Benefit Program.
- Improve Employee-Employer Relationship.
- Respond to Work-Force Diversity.
- Better Understanding of Benefits.
What is an example of a cafeteria plan?
Common examples of Section 125 cafeteria plans: Premium Only Plans (aka POPs, see Section 125 Premium Only Plan Rules & Regulations) Flexible Spending Accounts (aka FSAs) Contributions to Health Savings Accounts (aka HSAs)
What are cafeteria style benefits Why are they being offered by more companies today?
what are cafeteria-style benefits? Why are they being offered by more companies today? are plans that allow employees to select from a range of employer-paid benefits based on personal needs. They are being offered by more companies today to help workers and their needs.
What is a disadvantage of cafeteria style plans quizlet?
Employers must choose between paying a penalty or offering insurance meeting certain standards. Which of the following is a disadvantage of cafeteria-style plans? Employees selecting benefits leads to increasing costs.
Why are cafeteria plans helpful in the design of an employee benefit plan that provides nontaxable fringe benefits?
Why are cafeteria plans helpful in the design of an employee benefit plan that provides nontaxable fringe benefits? Under a cafeteria plan, employees may select which benefits they wish to receive, and select the items that they feel are most beneficial. There is no specific statutory exclusion for welfare benefits.
What is a disadvantage of an organization with a high paying incentive scheme?
Employees may focus on only the performance measures that are rewarded. What is a disadvantage of an organization with a high-paying incentive scheme? -Employees will feel that they cannot meet performance standards. There is a direct link between how much work employees do and the amount they earn.