If you give cash as a wedding giftâ¦. 1  Always enclose it in a nice card with the appropriate personal note, wedding wishes, and congratulations to the happy couple.  If you choose to give cash as a gift card, opt for cards at stores the couple prefers and cards without expiration dates or monthly fees.
Essentially, a cafeteria plan allows an employee to reduce their gross income, effectively reducing the amount they pay in Federal, Social Security, and some State taxes. This amounts to a savings of between 25% and 40% of every dollar they contribute to the plan. The employer also realizes savings on FICA withholding tax for each participating employee. Ask your employer about Cafeteria Plans because they save you and your company money on taxes.
Cafeteria plans are funded by employee salary reduction, much like 401(k) plans. This means a portion of each paycheck is diverted to the plan, reducing the employee's gross income for the year. Unlike a traditional 401(k) plan, cafeteria plans provide benefits to employees before retirement. In addition, while tax-deferred contributions to 401(k) and other qualified retirement savings plans are still taxable in the year they are withdrawn, some benefits received through cafeteria plans are fully tax-exempt.