Question

The CEO of Goldfish Inc., discovered that the company’s competitor had adopted a cafeteria plan for its employees. The CEO is concerned about retaining his talented employees and would like you to provide a brief explanation as to why a cafeteria plan may be attractive to the company’s employees. Also, explain how a cafeteria plan is taxed to employees.

Answer 1

• Now a days, companies are running 24x7 basis, as per need & requirement of specific industry and the personal life of employees are also getting disturbed.
• And to overcome above situation, everyone is trying to make good atmosphere for employees So that they will not be tensed and pressurized with the situation.
• For the betterment of working environment for employees, it is necessary that employees are getting all best services within the organization to relax and feel free to provide best services.
• Providing cafeteria facilities to employees are also a good way to provide them best way for relaxation during lunch and tea break. This will be good for employees as well as for employers to retain quality staff for providing best services.
• Employer can't charge directly from employee for every entry in cafeteria otherwise it will also create more pressure on them with existing one. So the best way to charge the same is to adjust as minimum amount as possible for cafeteria service from his salary with proper negotiations with them.