Cafeteria Plan

What is a 'Cafeteria Plan'

A Cafeteria plan is an employee benefit plan that allows staff to choose from a variety of benefits to formulate a plan that best suits their needs. Cafeteria plan options may include health and accident insurance, cash benefits, tax advantages and/or retirement plan contributions.

Also known as "cafeteria employee benefit plan" or "flexible benefit plan".

BREAKING DOWN 'Cafeteria Plan'

Similar to a cafeteria where individuals select their food of choice, employees may choose benefits of their choice. These plans become more useful as diversity within workforces continues to grow. For example, the benefit needs of young families may differ greatly from those of a single person.

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    Find out which benefits offered through your employer-sponsored cafeteria plan are taxable, and which qualified benefits ... Read Answer >>
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  3. Are Cafeteria plans subject to FICA, ERISA or FUTA?

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