In _____ plans, the employer allocates a certain amount of money to each employee and lets the employee spend that money for benefits that suit him or her.
A) cafeteria
B) fixed-benefit
C) estate
D) profit-sharing
E) saving

Question

In _____ plans, the employer allocates a certain amount of money to each employee and lets the employee spend that money for benefits that suit him or her.
A) cafeteria
B) fixed-benefit
C) estate
D) profit-sharing
E) saving

Quizplus · Accepted Answer

This type of plan is called a cafeteria plan or flexible spending account (FSA), where employees have the choice to select from a menu of benefits such as healthcare, dental, vision, and childcare expenses using a set amount of money allocated by the employer. The employee gets more control and flexibility in choosing their benefits with this type of plan.

In _____ Plans, the Employer Allocates a Certain Amount of Money