To amend the Internal Revenue Code of 1986 to provide for residents of Puerto Rico who participate in cafeteria plans under the Puerto Rican tax laws an exclusion from employment taxes which is comparable to the exclusion that applies to cafeteria plans under such Code.

H.R. 2238 aims to provide residents of Puerto Rico with the same federal tax advantages for workplace benefit plans that are available to employees in the 50 U.S. states. Specifically, it would exempt contributions made to "cafeteria plans"—which allow employees to pay for benefits like health insurance or childcare with pre-tax dollars—from federal payroll and unemployment taxes. If enacted, this change would lower the tax burden for Puerto Rican workers and their employers, ensuring that these local benefit plans receive consistent tax treatment under the federal Internal Revenue Code.