Cafeteria Plan Regulations

URL: https://www.irs.gov/government-entities/federal-state-local-governments/faqs-for-government-entities-regarding-cafeteria-plans
Regulation Reference Cite 26 U.S.C. § 125: 26 C.F.R. § 1.125-4
Report Due Date (Actual) N/A
Level Requirement
Oversight Unit HUMAN RESOURCES
Person Responsible Rhea Dever
Secondary Person Responsible
President / VP Level Finance
Description

Rules impact employee benefits, year end IRS reporting, and periodic employee notifications:  

Section 125(d)(1) defines a cafeteria plan as a written plan maintained by an employer under which all participants are employees, and all participants may choose among two or more benefits consisting of cash and qualified benefits. 

The regulation and supporting IRS issuances define what must be included in gross income as well as the timing for adding or revoking aspects of the plan benefits.  To comply, the IRS issuances and actual regulations should be reviewed periodically.  In addition, the timing for addition or revocation are defined by regulation and IRS rules.  Therefore, the notification process should be developed in conjunction with the regulation(s) and IRS rules.  

Contacts and Data Sources

TBD
Internal Notes

This compliance item has notes that are available internally to the oversight unit. Please contact the Risk Management Department for more information