An employee welfare benefit plan is any plan, fund, or program established and maintained by an employer for the purpose of providing employees with benefits in addition to wages, such as medical insurance, life and disability insurance, vacation benefits, day care, educational training, etc.
Parmenter O’Toole’s employee benefits attorneys have experience both drafting employee welfare benefit plans, including cafeteria plans and medical expense reimbursement plans, and assisting clients in making sure their employee benefits are provided according to Internal Revenue Service regulations, including nondiscrimination testing.
An often underutilized employee benefit is described in Section 125 of the Internal Revenue Code, and is commonly called a “cafeteria plan.” A cafeteria plan allows employees to withhold pretax dollars from their salary to cover certain benefits, including:
It is important to remember that the employer must maintain a written cafeteria plan document, provide employees with required notices, and make sure the plan is updated for changes in the law. Our employee benefits attorneys can help you design a new plan, or review your existing plan to ensure it complies with current legal requirements.
A medical expense reimbursement plan is designed to pay (with pretax dollars) those health, prescription, dental and vision expenses not covered by insurance. Medical expenses can include such things as eyeglasses, transportation to required doctor visits, certain over the counter drugs, etc. If you have a question regarding what can be paid for with a medical expense reimbursement plan, our employee benefits attorneys can provide guidance based on the latest Internal Revenue Service rules and regulations.