AICPA endorses bill to mow small businesses to extend benefits to employees.The AICPA AICPA See American Institute of Certified Public Accountants (AICPA). recently wrote Senator Olympia Snowe (R-ME) commending her for introducing S. 723, the SIMPLE Cafeteria Plan Cafeteria Plan An employee benefit plan that allows staff to choose from a variety of benefits to formulate a plan that best suits their needs. Also known as "cafeteria employee benefit plan" or "flexible benefit plan". Act of 2005, which would allow small businesses to provide nontaxable benefits, such as flexible spending accounts flexible spending account, n an employee reimbursement account primarily funded with employee-designated salary reductions. Funds are reimbursed to the employee for health care (medical and/or dental), dependent care, and/or legal expenses and are , to their employees. The AICPA noted that it is a longstanding supporter of simplifying and expanding the law governing the establishment of cafeteria plans so that small business employees can also benefit. The Institute also endorsed other provisions in S. 723 that would allow cafeteria plans of all sizes to offer long-term care long-term care (LTC), n the provision of medical, social, and personal care services on a recurring or continuing basis to persons with chronic physical or mental disorders. insurance as an optional benefit; permit the carryover of unused flexible spending account funds; simplify and increase dependent care accounts; and curtail the "use it or lose it" rule, which causes employees to forfeit their own dollars to their employers when the dollars are not spent on health care or dependent care. |
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