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© Hitesman & Wold, P.A. 2019 Cafeteria Plan Summary Description (3-11) 3 Salary reduction Employer contributions, which may be used to reimburse the Participant for limited medical expenses. It is made available for Participants wishing to make or receive contributions to a health savings account. HSA Contribution Feature The HSA contribution feature allows a Participant to make contributions to an HSA with pre -tax dollars to receive contributions through: Salary reduction Employer contributions. Cash Payment The cash payment benefit allows a Participant to receive cash in lieu of using the Employer contribution to pay for other benefits provided through the Cafeteria Plan. Cash payments are taxable to the Participant. 1.4 Who can participate in the Cafeteria Plan? Each employee who (a) is employed an average of thirty (30) hours or more per week, and (b) has been employed by the Employer for thirty (30) days is eligible to participate in the Cafeteria Plan on the first of the month following the thirty (30) day wait . In addition, any Employee who is eligible for group health or accident coverage that is an Optional Benefit shall be eligible to participa te in the Plan solely for purpose of paying premiums for that Optional Benefit regardless of whether he/she satisfies the foregoing eligibility requirements. These employees are called “Eligible Employees.” Those Eligible Employees who actually participate in the Cafeteria Plan are called "Participants." There are certain exceptions. They are described in the underlying Plan document. You will be notified if you fall within one of the exceptions. “Employee” means a common-law employee of the Employer who is on the Employer’s W-2 payroll, except that the term “Employee” does not include any common-law employee who is a leased employee (including, but not limited to, an individual defined in Internal Revenue Code § 414(n)), or any common-law employee who is an individual classified by the Employer as a contract worker, independent contractor, temporary employee or casual employee, whether or not any such person is on the Employer’s W -2 payroll. The term “Employee” also does not include any individual who performs services for the Employer but who is paid by a temporary or other employment agency such as “Kelly,” “Manpower,” etc., or any employee covered under a collective bargaining agreement unless the collective bargaining agreement so provides. The term “Employee” includes “former employees” for the limited purpose of allowing continued eligibility for benefits as provided hereunder after an employee ceases to be employed by the Employer. 1.5 When do I become a Participant and how long does participation last? For newly eligible Employees, participation may begin on the first of the month following thirty days from the date of hire or from the date on which you satisfy the definition of Eligible Employee or, if later, the first day of the first pay period following your completion and submission of any required enrollment forms. If they are required, you must submit the enrollment forms within the time period established and communicated to you by the Plan Administrator. NOTE: With respect to group premiums, if you have enrolled in those benefits, you may automatically become a Participant in this Cafeteria Plan as described in Section 1.6. If you do not become a Participant when first eligible, you may become a Participant at the start of any subsequent Plan Year. As a condition to participation in the Cafeteria Plan, you must also: