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CAFETERIA PLANS

SECTION 125

WHAT IS IT?

Cafeteria Plan, also 125 of the Internal Revenue Code (IRS), allows employees to pay for certain eligible expenses, such as health insurance premiums, dental care, vision care, and dependent care expenses, on a pre-tax basis. This means employees can lower their taxable income and increase their disposable income, all while enjoying a range of benefits tailored to their needs.

HOW IT WORKS

  • Eligibility and Enrollment: Learn who’s eligible for these plans and how to enroll.
  • Plan Options: Detailed explanation of different benefits available under Cafeteria Plans, such as health insurance, flexible spending accounts (FSAs), and more.
  • Contributions and Limits: Overview of how much employees can contribute and any applicable limits.

BENEFITS

  • Amount: Grant amounts vary based on the project scope and requirements, ranging from $50,000 to $500,000.
  • Duration: Project funding is available for a period of 1 to 3 years, depending on project needs and goals.
  • Use of Funds: Funds can be used for project development, implementation, and evaluation. Administrative costs should not exceed 10% of the total grant amount.

TYPES

  • Premium Only Plans (POPs): Allow employees to pay for their portion of insurance premiums with pre-tax dollars.
  • Flexible Spending Accounts (FSAs): Employees can set aside pre-tax dollars for medical expenses not covered by insurance and dependent care.
  • Full-Flex Plans: Offer a wide range of benefits, allowing employees to choose how to allocate their benefit dollars.

F.A.Q.

What type of projects does the grant fund?

The grant funds projects aiming to improve public health outcomes, including but not limited to disease prevention, health education, and community health initiatives.

Can funds be used for overhead costs?

Yes, but administrative costs should not exceed 10% of the total grant amount.