Also referred to as a “flexible benefit plan”, it allows participating employees to choose from a cafeteria-type menu of different health care coverage and provider options. If the cafeteria plan qualifies under Section 125 of the Internal Revenue Code (IRC), employees may also choose between non-taxable benefits and taxable cash. The advantages of one of these plans for employers is lower FICA (Federal Insurance Contributions Act) and FUTA (Federal Unemployment Tax Act) taxes. The advantages for employees are being allowed to pick and choose benefits, and to pay for the benefits with before-tax dollars.