Question 1

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

Accepted Answer

A)  $250 
B)  $750 
C)  $500 
D)  $100 
A)  $250 
B)  $750 
C)  $500 
D)  $100

Question 2

Which of the following are post-tax deductions? (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)  Employee contributions to 401(k) plans 
B)  Employee contributions to union dues 
C)  Employee contributions to charitable organizations 
D)  Employee contributions to gym memberships 
A)  Employee contributions to 401(k) plans 
B)  Employee contributions to union dues 
C)  Employee contributions to charitable organizations 
D)  Employee contributions to gym memberships

Question 3

Which of the following are examples of defined contribution plans? (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)  SIMPLE 
B)  IRA 
C)  403(b) 
D)  Pension 
A)  SIMPLE 
B)  IRA 
C)  403(b) 
D)  Pension

Question 4

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 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

Which of the following is/are hallmarks of 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.)

Accepted Answer

A)  Employee welfare remains unaffected by the benefit. 
B)  All employees have access to the benefit. 
C)  The ability to receive the benefit relates directly to performance. 
D)  The benefit improves employees' living conditions. 
A)  Employee welfare remains unaffected by the benefit. 
B)  All employees have access to the benefit. 
C)  The ability to receive the benefit relates directly to performance. 
D)  The benefit improves employees' living conditions.

Question 7

Employer contributions to employee health insurance must be:

Accepted Answer

A)  Reported in State taxable wages. 
B)  Reported in Box 12 using Code DD. 
C)  Added to Federal taxable wages. 
D)  Reported in Social Security wages. 
A)  Reported in State taxable wages. 
B)  Reported in Box 12 using Code DD. 
C)  Added to Federal taxable wages. 
D)  Reported in Social Security wages.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

What is the difference between a deﬁned beneﬁt and a deﬁned contribution retirement plan?

Accepted Answer

A)  Deﬁned beneﬁt plans limit employee contributions while employed. 
B)  Deﬁned contribution plans allow employees to contribute a set amount toward their retirement plan while employed. 
C)  Deﬁned contribution plans allow employees to determine a speciﬁc amount of money they wish to receive upon retirement. 
D)  Deﬁned beneﬁt plans allow employees to set aside money on a tax-exempt basis. 
A)  Deﬁned beneﬁt plans limit employee contributions while employed. 
B)  Deﬁned contribution plans allow employees to contribute a set amount toward their retirement plan while employed. 
C)  Deﬁned contribution plans allow employees to determine a speciﬁc amount of money they wish to receive upon retirement. 
D)  Deﬁned beneﬁt plans allow employees to set aside money on a tax-exempt basis.

Question 10

The cash value of ________ must be included as compensation on the employee's W-2.

Accepted Answer

A)  plaques and trophies 
B)  occasional meals and snacks 
C)  on-site athletic facilities 
D)  gift cards 
A)  plaques and trophies 
B)  occasional meals and snacks 
C)  on-site athletic facilities 
D)  gift cards

Question 11

Frances McNale is an employee who drives a 2019 Ford C-Max with a fair-market value of $29,500. The lease value is $7,750, according to Publication 15-b. The car was available for 150 days during the year, and she reported that 6,500 of the 27,850 miles were driven for personal purposes. The company pays for
All fuel and is charged back to Frances at $0.055 per mile. What is the amount of the company-car fringe beneﬁt that will appear on Frances's W-2, using the
Lease-value rule? (Do not round intermediate calculations, only round ﬁnal answer to two decimal points.)

Accepted Answer

A)  $1,100.84 
B)  $743.34 
C)  $1,020.44 
D)  $964.24 
A)  $1,100.84 
B)  $743.34 
C)  $1,020.44 
D)  $964.24

Question 12

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 13

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 14

Which of the following is an includible medical expense, according to Publication 502? (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)  Ambulance service 
B)  Hearing aids 
C)  Over-the-counter medicines 
D)  Braille books and magazines 
A)  Ambulance service 
B)  Hearing aids 
C)  Over-the-counter medicines 
D)  Braille books and magazines

Question 15

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

Accepted Answer

A) True 
 B)False

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

Employer contributions to employee health insurance must be:

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

What is the difference between a deﬁned beneﬁt and a deﬁned contribution retirement plan?

The cash value of ________ must be included as compensation on the employee's W-2.

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

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

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

Payroll Practices and System Fundamentals

Payroll System Procedures

Gross Pay Computation

Employee Net Pay and Pay Methods

Employer Payroll Taxes and Labor Planning

The Payroll Register, Employees Earnings Records, and Accounting System Entries

Filters

Exam 4: Fringe Benefits and Voluntary Deductions

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

Employer contributions to employee health insurance must be:

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

What is the difference between a deﬁned beneﬁt and a deﬁned contribution retirement plan?

The cash value of ________ must be included as compensation on the employee's W-2.

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

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

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

Payroll Practices and System Fundamentals

Payroll System Procedures

Gross Pay Computation

Employee Net Pay and Pay Methods

Employer Payroll Taxes and Labor Planning

The Payroll Register, Employees Earnings Records, and Accounting System Entries

Filters