1600.2.11 Cafeteria or Flexible Benefit Plans

Official source

Count cafeteria or flexible benefit plans as earned income when: An amount for the plan is withheld from the employee’s gross wages even if the employee loses any money left over at the end of the year. A refund is issued to the employee because all the money for benefits covered by an employer-funded plan were not used.

Exclude employer contributions into the plan at the time they are made.

Note : These benefits are not displayed in the same way on all pay stubs. The best source of information regarding them is the employer.

Exclude all funds in a Medicare flexible plan or Medicare spendable plan.

Cafeteria or flexible benefits plans use either the employee’s or employer’s money to pay certain expenses, such as child care, medical expenses, health insurance, annual leave or sick leave.

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1600.2.11 Cafeteria or Flexible Benefit Plans

Official source

Count cafeteria or flexible benefit plans as earned income when: An amount for the plan is withheld from the employee’s gross wages even if the employee loses any money left over at the end of the year. A refund is issued to the employee because all the money for benefits covered by an employer-funded plan were not used.

Exclude employer contributions into the plan at the time they are made.

Note : These benefits are not displayed in the same way on all pay stubs. The best source of information regarding them is the employer.

Exclude all funds in a Medicare flexible plan or Medicare spendable plan.

Cafeteria or flexible benefits plans use either the employee’s or employer’s money to pay certain expenses, such as child care, medical expenses, health insurance, annual leave or sick leave.