The Accounting Review Vol. 58 No. 3 1983
Employee Preferences for Nontaxable Compensation Offered in a Cafeteria Compensation Plan: An Empirical Study .
Abstract
Congress has attempted to increase the use of certain types of fringe-benefit compensation by statutorily providing for their exclusion from gross income. A questionnaire was designed to test whether employee preferences for educational, retirement, legal, life insurance, and health insurance benefits are influenced by either tax status or job classification, or by both. Specifically, 750 individuals from four organizations were asked to distribute their salaries among cash and the five noncash benefits. The noncash benefits were assumed to be taxable in one-half of the sample and nontaxable in the other half. Multivariate and univariate analysis of variance statistics indicated that tax status affected the preferences for education, retirement, and legal benefits, while job classification influenced the preferences for all of the noncash benefits except life insurance. In addition, the relatively large amount and variation of fringe benefits chosen suggest that the cafeteria compensation approach would be well accepted by employees.
- DOI
- 10.2308/tar-4486758
- Volume
- 58
- Issue
- 3
- Pages
- 539-561
- Language
- en
- Sources
- openalex crossref