Question 1

The most common way to determine the value of fringe beneﬁts is the general valuation rule.

Accepted Answer

A) True 
 B)False

Question 2

Under the special accounting rule, beneﬁts provided in the last quarter of the year may be reported during the following year.

Accepted Answer

A) True 
 B)False

Question 3

____ beneﬁts are fringe beneﬁts with minimal monetary value.

Accepted Answer

A) Mandatory 
B) Minimal 
C) De normal 
D) De minimis 
A) Mandatory 
B) Minimal 
C) De normal 
D) De minimis

Question 4

Post-Tax Deductions are amounts ____.

Accepted Answer

A) are only mandatory deductions like garnishments and union dues 
B) that the employer chooses to withhold after assessing the employee's tax liability 
C) that are voluntarily chosen by the employee 
D) includes both mandatory and voluntary deductions 
A) are only mandatory deductions like garnishments and union dues 
B) that the employer chooses to withhold after assessing the employee's tax liability 
C) that are voluntarily chosen by the employee 
D) includes both mandatory and voluntary deductions

Question 5

Luis Billiot is an employee of Plato Designs and drives a 2019 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.)

Accepted Answer

A) 82.19% 
B) 14.50% 
C) 17.64% 
D) 19.40% 
A) 82.19% 
B) 14.50% 
C) 17.64% 
D) 19.40%

Question 6

If a fringe beneﬁt involves a deduction from employee pay, which of the following is true?

Accepted Answer

A) Employers may only offer the beneﬁt to certain classes of employees. 
B) The amount of the deduction must be listed on the employee's pay advice. 
C) The fringe beneﬁt must be subject to income tax. 
D) The employee must enroll in direct deposit for their pay. 
A) Employers may only offer the beneﬁt to certain classes of employees. 
B) The amount of the deduction must be listed on the employee's pay advice. 
C) The fringe beneﬁt must be subject to income tax. 
D) The employee must enroll in direct deposit for their pay.

Question 7

Charitable contributions are an example of post-tax voluntary deductions.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) $2,000 
B) $1,400 
C) $800 
D) $1,600 
A) $2,000 
B) $1,400 
C) $800 
D) $1,600

Question 9

Fringe beneﬁts are monetary or nonmonetary compensation given to employees in return for their service to the company.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following may be included as part of an employee's Section 125 "cafeteria" plan?

Accepted Answer

A) Medical expenses 
B) Tuition expenses 
C) Meal expenses 
D) Moving expenses 
A) Medical expenses 
B) Tuition expenses 
C) Meal expenses 
D) Moving expenses

Question 11

Under what condition is the fringe beneﬁt of a gym membership taxable?

Accepted Answer

A) When the employer has on-site facilities that are open to public use. 
B) When the employer has on-site facilities that are restricted to employee use. 
C) Gym memberships are always taxable. 
D) When the employer offers membership to an off-site club at no additional cost to the employee. 
A) When the employer has on-site facilities that are open to public use. 
B) When the employer has on-site facilities that are restricted to employee use. 
C) Gym memberships are always taxable. 
D) When the employer offers membership to an off-site club at no additional cost to the employee.

Question 12

The reporting of employee benefits occurs on the ____ and the ____ . (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

Accepted Answer

A) Total compensation report 
B) Form W-2 
C) Payroll register 
D) Form W-4 
A) Total compensation report 
B) Form W-2 
C) Payroll register 
D) Form W-4

Question 13

Which of the following is an example of a post-tax mandated deduction? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

Accepted Answer

A) Credit card liens 
B) Tax liens 
C) Garnishments 
D) Charitable contributions 
A) Credit card liens 
B) Tax liens 
C) Garnishments 
D) Charitable contributions

Question 14

Which of the following must accompany a Health Savings Account (HSA) to be considered part of a cafeteria plan?

Accepted Answer

A) Flexible Savings Agreement 
B) High-deductible health plan 
C) Long-term care insurance 
D) Low-deductible health plan 
A) Flexible Savings Agreement 
B) High-deductible health plan 
C) Long-term care insurance 
D) Low-deductible health plan

Question 15

Under the lease-value rule, how is the taxable income for the employee determined? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

Accepted Answer

A) Multiply the lease amount by the percent of personal usage of the vehicle. 
B) Use the annual lease value amount for the vehicle from Publication 15b. 
C) Subtract the dollar amount of the fuel used. 
D) Multiply the lease amount by the percent of business usage of the vehicle. 
A) Multiply the lease amount by the percent of personal usage of the vehicle. 
B) Use the annual lease value amount for the vehicle from Publication 15b. 
C) Subtract the dollar amount of the fuel used. 
D) Multiply the lease amount by the percent of business usage of the vehicle.

Question 16

Retirement fund contributions are generally subject to ____ and ____ taxes.

Accepted Answer

A) Federal withholding; Social Security 
B) Federal withholding; State withholding 
C) Federal withholding; Medicare 
D) Social Security; Medicare 
A) Federal withholding; Social Security 
B) Federal withholding; State withholding 
C) Federal withholding; Medicare 
D) Social Security; Medicare

Question 17

The ____ determines when beneﬁt amounts should be withheld from employee pay.

Accepted Answer

A) State in which the business is conducted 
B) employee 
C) IRS 
D) employer 
A) State in which the business is conducted 
B) employee 
C) IRS 
D) employer

Question 18

Under the unsafe conditions rule:

Accepted Answer

A) Employees are charged $1.50 for the one-way commute. 
B) An employee may use a company vehicle for a one-way commute. 
C) Employees may only use company cars if their normal travel mode is unsafe. 
D) Employees may leave work at any time. 
A) Employees are charged $1.50 for the one-way commute. 
B) An employee may use a company vehicle for a one-way commute. 
C) Employees may only use company cars if their normal travel mode is unsafe. 
D) Employees may leave work at any time.

Question 19

What is a limit on garnishments for nontax liens?

Accepted Answer

A) It may not exceed 15% of an employee's disposable income. 
B) It may not exceed 30 times the federal minimum wage. 
C) An additional 5% may be added for any lien payments in arrears. 
D) It may be up to 50% of an employee's disposable income. 
A) It may not exceed 15% of an employee's disposable income. 
B) It may not exceed 30 times the federal minimum wage. 
C) An additional 5% may be added for any lien payments in arrears. 
D) It may be up to 50% of an employee's disposable income.

Question 20

Contributions to FSAs in excess of what annual amount are treated as taxable income?

Accepted Answer

A) $1,930 
B) $2,370 
C) $1,660 
D) $2,700 
A) $1,930 
B) $2,370 
C) $1,660 
D) $2,700

The most common way to determine the value of fringe beneﬁts is the general valuation rule.

Under the special accounting rule, beneﬁts provided in the last quarter of the year may be reported during the following year.

____ beneﬁts are fringe beneﬁts with minimal monetary value.

Post-Tax Deductions are amounts ____.

If a fringe beneﬁt involves a deduction from employee pay, which of the following is true?

Charitable contributions are an example of post-tax voluntary deductions.

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

Fringe beneﬁts are monetary or nonmonetary compensation given to employees in return for their service to the company.

Which of the following may be included as part of an employee's Section 125 "cafeteria" plan?

Under what condition is the fringe beneﬁt of a gym membership taxable?

Which of the following must accompany a Health Savings Account (HSA) to be considered part of a cafeteria plan?

Retirement fund contributions are generally subject to and taxes.

The ____ determines when beneﬁt amounts should be withheld from employee pay.

Under the unsafe conditions rule:

What is a limit on garnishments for nontax liens?

Contributions to FSAs in excess of what annual amount are treated as taxable income?

The Need for Payroll and Personnel Records

Computing Wages and Salaries

Social Security Taxes

Unemployment Compensation Taxes

Payroll Project

Filters

Exam 4: Income Tax Withholding

The most common way to determine the value of fringe beneﬁts is the general valuation rule.

Under the special accounting rule, beneﬁts provided in the last quarter of the year may be reported during the following year.

____ beneﬁts are fringe beneﬁts with minimal monetary value.

Post-Tax Deductions are amounts ____.

If a fringe beneﬁt involves a deduction from employee pay, which of the following is true?

Charitable contributions are an example of post-tax voluntary deductions.

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

Fringe beneﬁts are monetary or nonmonetary compensation given to employees in return for their service to the company.

Which of the following may be included as part of an employee's Section 125 "cafeteria" plan?

Under what condition is the fringe beneﬁt of a gym membership taxable?

Which of the following must accompany a Health Savings Account (HSA) to be considered part of a cafeteria plan?

Retirement fund contributions are generally subject to ____ and ____ taxes.

The ____ determines when beneﬁt amounts should be withheld from employee pay.

Under the unsafe conditions rule:

What is a limit on garnishments for nontax liens?

Contributions to FSAs in excess of what annual amount are treated as taxable income?

The Need for Payroll and Personnel Records

Computing Wages and Salaries

Social Security Taxes

Unemployment Compensation Taxes

Payroll Project

Filters

Retirement fund contributions are generally subject to and taxes.