Other employer-provided benefits are composed of three groupings of benefits: welfare, other (Life Insurance, Auto & Education) and fringe.
Month: February 2018
Cafeteria plans, a.k.a. Section 125 plans, are employer sponsored benefit packages that allow employees to choose from a menu of options and allocate their allotted share to the items they pick. With this type of plan the employer agrees to an allowance per employee to contribute to the package. The employee may either take the allowance as additional cash income (fully taxed) or allocate the amount among the various benefit options.