Exam 4: Fringe Benefits and Voluntary Deductions

Which of the following deductions may be taken on a pre-tax basis? (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.)

Lakiesha is an employee who drives a 2019 Buick Verano as a company car. The fair-market value of the car is $28,545. She has been given the choice to have her fringe benefit reported on her W-2 either using the lease-value rule or the cents-per mile rule. According to Publication 15-b, the lease value is $7,750. She has driven 4,500 miles for personal use and 31,250 miles in total during the year. The car has been available for use on 200 days during the year. Lakiesha's employer pays for all fuel. What method and valuation will yield the lowest fringe-benefit amount for Lakiesha? (Do not round intermediate Calculations, only round final answer to two decimal points.)

Publication ________ is the employer's guide to fringe benefits.

________ benefits are fringe benefits with minimal monetary value.

What is true about long-term disability insurance?

Tanesha works part-time for a governmental agency and is given a car for work-related and commute purposes. During the last calendar year, she worked 150 days and had a commute of 35 miles each direction. What is the amount of the company-car fringe benefit that will appear on her W-2? (Do not round Intermediate calculations, only round final answer to two decimal points.)

What options do employers have regarding taxable fringe benefits? (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.)

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 the employee tax treatment of employer-provided snacks and meals?

Health Savings Accounts may be used as pre-tax deductions for which type of costs? (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.)

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

By what date must the value of all noncash benefits be determined for the preceding year?

Which of the following is true about excluded fringe benefits? (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.)

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

What is the major limitation of a SIMPLE retirement plan?

What differentiates Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs)?

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 28,350 miles for personal use. He pays for his own fuel. What is the amount of the company-car fringe benefit that will appear on Luis's W-2, using the lease-value rule? (Do not round Intermediate calculations, only round final answer to two decimal points.)

Specific fringe benefit exclusion rules are found in Publication 15.

The primary difference between pre-tax and post-tax deductions is:

Which is the retirement plan used for a tax-favorable IRA set up by or for the employee, where the employer contributes the funds into the account?