Internal Revenue Code Section 79 permits an employee to receive up to $50,000 of group term basic life insurance on a tax-free basis. The value amount over $50,000 must be added to the individual’s taxable income.

Employees who receive disability benefits (long-term or short-term) may be taxed on these benefits based on how the premiums are paid.

Cafeteria plans must meet certain nondiscrimination requirements to ensure highly compensated key employees do not receive a disproportionate amount of tax-advantaged benefit.

Welfare benefit plans that have 100 or more participants enrolled on the first day of the plan year are required to file a Form 5500s (and attachments) each year.