Question

If both employer A and employer B allow Frank to choose which benefits he would like to participate in, this type of benefit plan is known as______

Answer 1

Cafeteria Plan.

Explanation:

The cafeteria plan is an employee benefit in the United States that allows their employee to select between different types of benefits just like selecting what to eat in a cafeteria. The cafeteria plans are not included with the gross income of the employee. The employee usually has a choice between cash or benefits. Two of the major benefits are health insurance and over-the-counter expense reimbursement.