What is Cafe 125 all about, and why are they taking money I already paid?
Posted by Caffe | Posted in United States | Posted on 08-03-2010
Tagged Under : Insurance, Medical Insurance, Money
txbbwpryncess asked:
The same amount that I paid out for medical insurance pre-tax as well as dental and flexible spending is the amount as this ‘cafe 125′. Can they take money from me that I already paid? That doesn’t seem fair.
The same amount that I paid out for medical insurance pre-tax as well as dental and flexible spending is the amount as this ‘cafe 125′. Can they take money from me that I already paid? That doesn’t seem fair.
Cafe 125 is your employer’s cafeteria plan. The amount on your W-2 shows how much your gross wages are being adjusted for benefits.
It is information only that the IRS needs and you are not being taxed on the amounts you have paid into your cafeteria plan. IRS needs to know this for information purposes.
You are not taxed on this.