A cafeteria plan is an employer-sponsored program that lets employees choose between cash wages and qualified benefits paid before taxes. Section 125 of the Internal Revenue Code sets two conditions: every participant must be an employee, and each must be able to pick among two or more options made up of cash and qualified benefits.
To switch payroll providers, you choose a cutover date and move your payroll records, then give the new payroll provider authority with the tax agencies and test a parallel run. Before go-live, settle in writing who files each return.
Compliance requirements for employers come from every federal, state, and local rule that governs how you hire, pay, schedule, protect, and keep records on employees. National law sets the floor for every U.S. employer. The Department of Labor alone enforces more than 180 federal laws, according to its guide to major labor laws, and several other agencies cover the rest.
