You are a small business owner and want your employees to participate in employer-provided benefits. Should you decide to go ahead, you could reasonably expect to be subject to the "substantial and recurrent" rule under IRS rules if: your employees receive benefits tax-free through a cafeteria plan.you have established a money purchase plan and based your contributions on a percentage of your employees' compensation.you have defined an exact benefit in a defined benefit plan and determined the contribution needed to fund the benefit.you chose a profit-sharing plan and fail to make consistent contributions from profits.