CAFETERIA/SECTION 125 PLAN Sample Clauses
The Cafeteria/Section 125 Plan clause establishes an employee benefit program that allows employees to choose among various pre-tax benefit options, such as health insurance, dental coverage, or flexible spending accounts. Under this plan, employees can allocate a portion of their salary before taxes are deducted to pay for eligible benefits, thereby reducing their taxable income. The core practical function of this clause is to provide employees with flexibility in selecting benefits that best suit their needs while offering tax advantages, ultimately making benefits more affordable and attractive.
CAFETERIA/SECTION 125 PLAN. The COUNTY agrees to continue working with the ASSOCIATION on the existing "Cafeteria" or "Section 125" style benefit plan and to evaluate, when economically feasible, additional employee benefits which may be pre-taxed.