College employees have established a cafeteria plan, which allows the costs of certain insurance coverage to be deducted from the taxable income prior to calculation of FICA and federal and state taxes. The net result is a reduction in the amount of these taxes paid for those individuals participating in the respective insurance programs. Per IRS Regulations, a Salary Redirection Agreement must be signed when employment begins. AFLAC manages the cafeteria plan for NACC; therefore, an AFLAC agent must see each new employee to sign the document.
Insurances which are included are PEEHIP and other hospitalization and health (illness) policies, such as cancer coverage. Disability, life, and accident-only policies are excluded.