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Accounting, Payroll & Pension Issues/Supplemental Insurance Cafeteria Plans
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Question
I live in TX. I have looked everywhere, but cannot find the answer. We have a small business, 6 employees. Everyone has Aflac. What is our reporting responsibility? We were told it reduces our matching FICA amount, great. What are our responibilities as the administrator, as far as special forms, or IRS reporting? I also sell Aflac and I get this question all the time from CPA's. I want to make sure I am reporting pre-taxed cafeteria plan dollars correctly.
I cannot help you with this question. We do not pretax Aflac. It is a supplemental insurance and it is not covered under our 125 Cafeteria plan.
The 125 Cafeteria plan is written diffrently for each company. It has to be passed by the IRS and approved for that company.
Our 125 Cafeteria plan only covers medical, vision and flex plan coverages. Any supplemental insurance is paid for with after tax dollars.
Perhaps your company plan is written differently. If you do not have a formal 125 Cafeteria Plan you cannot pretax insurance.
Shirley
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Answers by Expert:
Shirley McAllister, CPP, PHR
Expertise
I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.
Experience
25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.
Organizations
SHRM, APA, I.O.M.A.
Publications
I.O.M.A. and BNA
Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration.
Boise State University Human Resource Certification
Awards and Honors
APA Hotline Citation of Merit for last 8 years.
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