Flexible spending accounts are "cafeteria" plans,meaning premiums are deducted from the employee's wages before withholding taxes are deducted.

Question

Quizplus · Accepted Answer

Flexible spending accounts are designed as "cafeteria" plans where the employees can choose the benefits they want to receive from a list of options. The premiums for the selected benefits are deducted from the employee's wages before any withholding taxes are applied, reducing their taxable income.

Flexible Spending Accounts Are "Cafeteria" Plans,meaning Premiums Are Deducted from the Employee's