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welcome to our presentation on cafeteria plan administration many times the cafeteria plan is also called flexible spending FSA medical reimbursement or day care reimbursement in any case your cafeteria plan is one way to save money on certain expenses that you already have or will have in the near future saving money on certain expenses of what makes your cafeteria plan worth considering for example if you look at our first graphic of a person earns about thirty-five hundred dollars per month and wages is taxing those wages then pays out of pocket for medical prescription and daycare expenses the take-home pay is about sixteen hundred dollars per month now if we take the same wages but like to have the same medical prescription and daycare expenses reimbursed the cafeteria plan those elected amounts are not taxed which creates the savings about thirty cents on every dollar and increases the take-home pay the same person by two hundred thirty-eight dollars per month or almost three tho

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