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SSA Handbook §1341

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1341. Payments Under a Cafeteria Plan

1341.1 What is a "cafeteria plan"?

A "cafeteria plan", under IRC section 125, is a written plan under which all participants are employees. The participants may choose among two or more employer-provided benefits consisting of cash and qualified benefits.

1341.2 Do cafeteria plan payments count as wages?

Whenever you select cash instead of a qualified benefit, these payments count as wages.

Last Revised: March, 2001


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