This cafeteria plan allows employees to exclude allocated income from federal income tax to pay for the benefits. (Pretax Salary Reduction Plans)

Question

Quizplus · Accepted Answer

The given cafeteria plan where employees can exclude allocated income from federal income tax to pay for the benefits is known as pretax salary reduction plans. Hence, the correct choice is C. The other options such as core-plus-option plans, modular plans, and mix-and-match plans do not specifically relate to the given scenario.

This Cafeteria Plan Allows Employees to Exclude Allocated Income from Federal