Hawaii SB2122 amends cafeteria plans to allow salary reductions for eligible benefits.

Hawaii SB2122 amends Section 78-30 of the Hawaii Revised Statutes to allow each chief executive to establish a wage and salary reduction benefit program, known as a cafeteria plan. This plan allows eligible employees to reduce their pretax compensation in exchange for the jurisdiction covering the expenses of eligible benefits. The maximum salary reduction contribution and carryover amount for flexible spending accounts must align with the inflation-adjusted maximum amounts set by the Internal Revenue Service for that year.

Hawaii SB2122 amends cafeteria plans to allow salary reductions for eligible benefits.

Hawaii SB2122 amends Section 78-30 of the Hawaii Revised Statutes to allow each chief executive to establish a wage and salary reduction benefit program, known as a cafeteria plan. This plan allows eligible employees to reduce their pretax compensation in exchange for the jurisdiction covering the expenses of eligible benefits. The maximum salary reduction contribution and carryover amount for flexible spending accounts must align with the inflation-adjusted maximum amounts set by the Internal Revenue Service for that year.