Yes. However, a thorough review of claims procedures should be conducted for both benefit types as they may differ.

A cafeteria plan may also be referred to a flexible benefits plan. Generally, this is a plan which offers participants a choice between one or more qualified benefits (options of nontaxable benefits) and cash. If an employee elects a voluntary salary reduction, the result is generally recognized as “cash”. “Pre-tax” benefits can then be offered … Continue reading WHAT IS A CAFETERIA OR FLEXIBLE BENEFITS PLAN? →

A Wrap Plan primarily refers to a document used for fully insured Summary Plan Description’s that “wrap” around an insurers Certificate of Coverage or plan document packet. A Wrap SPD without an affixed description of coverage is not a complete Summary Plan Description. Self-funded plans do not have a Certificate of Coverage to wrap around, … Continue reading WHAT IS A “WRAP PLAN” IN COMPARISON TO A SUMMARY PLAN DESCRIPTION (SPD)? →

In most cases, NO. Plans must be for the exclusive use of employees and participants. A single employer is not permitted to cover an employee(s) of another company under a single employer plan. Plans that are currently or will be covering employees of multiple employers, are referred to as a “controlled group”, “affiliated service group” … Continue reading ARE NON-EMPLOYEES PERMITTED TO BE COVERED BY A PLAN? →

Internal Revenue Code allows for benefits to be paid to plan participants without such benefits becoming taxable income to participants. Section 105 allows employers to exclude income, for amounts paid for accident and health insurance benefits. There is also a section that describes non-discrimination testing that employers must comply with. This will ensure that highly … Continue reading DOES THE INTERNAL REVENUE SERVICE PLAY A ROLE WITHIN A PLAN DOCUMENT? →