Many firms outsource their cafeteria plans to a professional vendor because of the complexity of administering the system.

Outsource

The practice of hiring third-party vendors to perform services or produce goods that were previously handled in-house.

Cafeteria Plans

A type of employee benefit plan that allows workers to choose from a variety of pre-tax benefits, adjusting the plan to their personal needs.

Professional Vendor

A company or individual that provides specialized services or products to businesses under a contractual agreement.