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Abril del cielo Sanchez
on Dec 06, 2024

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What is an advantage of cafeteria-style plans?

A) Employees do not have to select their individual plans.
B) Employees can get a better understanding of the value of benefits provided.
C) These types of plans have lower administrative costs.
D) Since employees will select the benefits that they need the most, it reduces the overall costs.
E) When companies provide cafeteria-style plans, they do not have to pay unemployment insurance tax.

Cafeteria-Style Plans

Employee benefit plans that allow workers to choose from a variety of pre-tax benefits, tailoring their benefits package to their specific needs.

Unemployment Insurance Tax

A tax collected by the federal and state governments from employers to fund unemployment benefits for workers who have lost their jobs.

Administrative Costs

Expenses related to the general management and administration of an organization, as opposed to production or manufacturing costs.

  • Assess the role of cafeteria-style plans in offering flexible benefits to meet diverse employee needs.
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luchia nanamaiDec 13, 2024
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