Complying with the Massachusetts Cafeteria Plan Requirement

Beginning July 1, 2007, companies with 11 or more employees working at Massachusetts locations are generally required to maintain a "section 125 cafeteria plan" enabling employees to pay for health care coverage (whether obtained through an employer-sponsored group health plan or elsewhere) on a pre-tax basis.

This advisory outlines the steps required to adopt a separate cafeteria plan that complies with the Massachusetts section 125 cafeteria plan requirement.