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.
To qualify, a cafeteria plan must allow employees to choose from two or more benefits consisting of cash or qualified benefit plans. The Internal Revenue Code explicitly excludes deferred compensation plans from qualifying as a cafeteria plan subject to a gross income exemption.Section 125 also provides two exceptions.he second exception is that if the statutory nontaxable benefits provided to key employees exceed 25 percent of the aggregate of such benefits provided for all employees under the plan, then the key employees must report their cafeteria plan benefits as income.