Cafeteria plans allow employees to choose between cash pay and$/$or qualified nontaxable benefits. Flexible spending accounts provide employees the ability to put pretax dollars into a trust account to be used for health care, certain insurance premiums, and dependent care.

In your initial discussion post, address the following:

Summarize pretax salary reductions.

Discuss how these items affect your withheld income tax and tax expense paid by employers.

If you have not considered the pretax salary reductions, would you consider it for the future tax year? Explain why or why not.

If you use pretax salary reductions, how have they worked out for you, will you use them again next year? Justify your reasons.