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Home > Business Banking > Employee Benefits > Cafeteria Plans
  • Cafeteria Plans

    Add an inexpensive benefit to your employee tax benefit plan.

     

    Act Now!

    Call us at 573.874.8100 or 800.842.2262 for more information.

    How Does A Cafeteria Plan Work?

    Cafeteria plans, also called flexible spending accounts (FSAs), allow employees to use pre-tax dollars at pay medical insurance premiums, out-of-pocket medical expenses and dependent care expenses.

    Cafeteria plans earned their nickname from the flexibility they give employees in choosing from a menu of benefits. With a cafeteria plan, employees authorize employers to deduct a fixed amount or percentage from their before-tax income.

    • Contributions are made to a reimbursement account that is used to pay for qualified expenses
    • Out-of-pocket medical expenses that aren’t covered by insurance (for example: office co-payments, prescriptions, over-the-counter drugs) can be run through the plan
    • The dependent care FSA is an attractive benefit for employees who pay for child-care or long-term care for their parents
    • Group life insurance premiums that employers do not reimburse may be an eligible expense
    • Contributions are exempt from federal income taxes and payroll taxes

    In some cases, this service may consist of deposit and non-deposit products that may or may not be FDIC insured. Non-insured FDIC products are not considered a deposit of, obligation of, nor guaranteed by the bank, and are subject to investment risk including the possible loss of principal invested.