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In order for health care care reimbursements compensated to an employee through a cafeteria intend to be excludible under area a hundred and five(b), the reimbursements has to be compensated pursuant to an employer-funded accident and wellness prepare,Employer S maintains a calendar yr cafeteria prepare. The cafeteria prepare offers staff members a

Throughout 2009, Staff A takes advantage of only two months of paid time without work. Employee A is deemed to get used two months of nonelective compensated time off and zero weeks of elective compensated time without work. (iii) Pursuant into the cafeteria plan, the approach pays Staff A the value on the unused elective compensated time off 7 day