1341.Payments Under a Cafeteria Plan
1341.1What is a cafeteria plan?
A “cafeteria plan”, under IRC section 125, is a written plan under which all participants are employees. The participants may choose among two or more employer-provided benefits consisting of cash and qualified benefits.
1341.2Do cafeteria plan payments count as wages?
Whenever you select cash instead of a qualified benefit, these payments count as wages.