BAS Blog

Question of the Week

Written by BAS | Sep 13, 2018 12:00:00 PM

Q.- I just started as the HR director at a closely held business. It is a partnership. One of the partners is paying for medical coverage with pre-tax dollars through the cafeteria plan. Is this allowed?

A.- No. General partners in a general or limited partnership cannot participate in a cafeteria plan. A partner in this situation is considered a self-employed individual and is excluded under the cafeteria plan rules.