Need Help -- Pros and Cons of Cafeteria plan for 50+ person architectu

[Guest Ann Trowbridge]

Currently company pays 100% of employee and (after 1 year) dependent health insurance premiums (choice of 3 plans); 401k contributions by employees only -- up to 17% of salary; small disability policy and a token life policy provided. Firm is owned by a married couple. Wide range of employees in age and marital/ kids status. Profit sharing plan --max is currently paid into annually by firm. No pension plan.

Question: What are the pros and cons of a cafeteria plan in terms of:

-- flexible/ egalitarian benefits (some would like to have tax-free spending accounts for childcare, dental etc.)

-- max. limits in firm's tax-free dollars and how they are distributed

-- other issues such as the costs of administering such a plan in house and in fees.

-- Could we get some of the flexible benefits like tax-free childcare costs without a cafeteria plan?

(excuse my very basic questions but our financial and personnel committee chairs dumped this on the business development person!)

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Ann Trowbridge, AIA