Hawaii HB1661 amends cafeteria plans to allow eligible employees to reduce pretax compensation for eligible benefits.

Hawaii HB1661 amends Hawaii Revised Statutes to allow eligible employees to reduce their pretax compensation for payment of eligible benefits through a wage and salary reduction benefit program, also known as a cafeteria plan. This change aligns with the Internal Revenue Code's section 125, ensuring the maximum salary reduction contribution and carryover amounts are set annually according to inflation-adjusted amounts prescribed by the Internal Revenue Service.

Hawaii HB1661 amends cafeteria plans to allow eligible employees to reduce pretax compensation for eligible benefits.

Hawaii HB1661 amends Hawaii Revised Statutes to allow eligible employees to reduce their pretax compensation for payment of eligible benefits through a wage and salary reduction benefit program, also known as a cafeteria plan. This change aligns with the Internal Revenue Code's section 125, ensuring the maximum salary reduction contribution and carryover amounts are set annually according to inflation-adjusted amounts prescribed by the Internal Revenue Service.