Exam 4: Fringe Benefits and Voluntary Deductions

Hattie Bowers is a government employee who is provided a car for commuting and other work-related purposes only. In the last calendar year, her commute is 8 miles each way and she worked 220 days. What is the amount of the company-car fringe benefit that will appear on her W-2? (Do not round intermediate calculations.)

Under the unsafe conditions rule:

The IRS permits employees to rollover up to ________ in their FSA at the employer's discretion.

According to Publication 15b, what is the annual cash value limit for excluded prizes and awards?

Under the Affordable Care Act, what are the rules for dependents to be covered under a parent's health plan? (Select all that apply.)

What is the purpose of pre-tax deductions?

What is the term for a tax-favorable IRA is set up by or for the employee, and the employer contributes the funds into the account?

What is true about long-term disability insurance?

Fringe benefits are given to employees in return for their service to the company.

Employer contributions to employee health insurance must be:

Luis Billiot is an employee of Plato Designs and drives a 2017 Toyota Camry as a company car. The fair-market value of the car is $25,499 and the lease value is $6,850, according to Publication 15-b. The car has been available for 300 days during the year and Luis has driven 5,500 of the 28,350 miles for personal use. He pays for his own fuel. What is the percentage of miles driven for personal use, using the lease-value rule? (Do not round intermediate calculations, only round final answer to two decimal points.)

If an employer paid for its employees' long-term care insurance premiums, who determines the effect on the employees' gross pay?

What is the primary difference between the lease-value rule and the commuter rule as they pertain to the valuation of a company car fringe benefit?

Which of the following is true about excluded fringe benefits? (Select all that apply.)

Which of the following are examples of defined contribution plans? (Select all that apply.)

Under the ________, benefits offered only during the last two months of the year may be treated as paid during the following calendar year.

The reporting of employee benefits occurs on the ________ and the ________. (Select all that apply.)

Which of the following is/are hallmarks of fringe benefits? (Select all that apply.)

Which fringe benefit valuation rule(s) permit employees to use a company vehicle for personal purposes as a fringe benefit? (Select all that apply.)

Fringe benefits are part of an employee's cash compensation package.