Participation of employees for whom do not report/withhold on income

[Guest StephenJ7976]

Does anyone know whether an employer can allow employees to participate in the employer's cafeteria plan if the employer does not have reporting/withholding obligations on the incomes of such employees? Any thoughts or ideas are much appreictaed. Thanks.

[leevena]

Are these regular employees or are they independent contractors. I don't know if I ever ran across a group that has bonafide employees that are not subject to withholding.