Question

Heidis employer offers paid vacations and health and life insurance as well as a 401(k). Currently, Heidi is only participating in the 401(k) plan. The fact that she was able to pick an option according to her preference means that her employer offers benefits as a part of a(n) ____.

A. Cafeteria plan
B. Insurance package
C. Total compensation package
D. Civil libert

Answer 1

A. Cafeteria plan

Explanation:

Heidi's employer offers paid vacations and health and life insurance as well as a 401(k) but she is only participating in the 401(k) plan.

This is a part of Cafeteria plan.

A Cafeteria Plan is a reimbursement plan that allows the employees to contribute some amount of their gross income to a designated account before taxes are calculated.