Allowance (Cafeteria 125)
My question involves labor and employment law for the state of: Illinois
I have asked for a car and gas allowance at work and the owner has agreed to give me 500/ month above and beyond my weekly salary. However he told me he like to give me this incentive through Cafeteria 125. I've never heard of this and the little I've read about it, it doesn't seem this plan is directed for this type of incentive. Am I correct on this?
Why would he be reluctant to give me an accounts payable check for this amount, is it because of taxes? Can't the company expense this monthly amount?
Any suggestions would be appreciated.
Re: Allowance (Cafeteria 125)
I've never heard of a cafeteria plan to cover gas and mileage (although that is probably not a bad idea).
Get some more info and post it here.
Re: Allowance (Cafeteria 125)
If the owner gives me 500/ month through this cafeteria plan, will I see the 500 dollars or will I see a lesser amount?
Re: Allowance (Cafeteria 125)
When you asked your employer this question, what did he say?
Re: Allowance (Cafeteria 125)
All he said was that the money would be pretax