Question 1

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

Accepted Answer

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

Question 2

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?

Accepted Answer

A) IRA 
B) SIMPLE 
C) ESOP 
D) SEP 
A) IRA 
B) SIMPLE 
C) ESOP 
D) SEP

Question 3

All employee contributions to qualified Premium-Only Plans (POP)and Flexible Spending Arrangements (FSA)are deducted on a pre-tax basis.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is an example of a post-tax mandated deduction? (You may select more than one answer. )

Accepted Answer

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

Question 5

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

Accepted Answer

A) 10-a 
B) 15-f 
C) 15-b 
D) 12-c 
A) 10-a 
B) 15-f 
C) 15-b 
D) 12-c

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Lakiesha is an employee who drives a 2017 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. )

Accepted Answer

A) Lease-value,$859.01 
B) Cents-per-mile,$859.01 
C) Lease value,$2,452.50 
D) Cents-per-mile,$2,452.50 
A) Lease-value,$859.01 
B) Cents-per-mile,$859.01 
C) Lease value,$2,452.50 
D) Cents-per-mile,$2,452.50

Question 8

Which of the following are post-tax deductions? (You may select more than one answer. )

Accepted Answer

A) Employee contributions to gym memberships. 
B) Employee contributions to charitable organizations. 
C) Employee contributions to union dues. 
D) Employee contributions to 401(k)plans. 
A) Employee contributions to gym memberships. 
B) Employee contributions to charitable organizations. 
C) Employee contributions to union dues. 
D) Employee contributions to 401(k)plans.

Question 9

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

Accepted Answer

A) Amounts contributed to FSAs may not be rolled over from one year to the next. 
B) HSAs expire on an annual basis but FSAs continue perpetually. 
C) FSAs expire annually but HSAs may be reserved for use late in life. 
D) Only HSAs may be deducted from employee on a pre-tax basis. 
A) Amounts contributed to FSAs may not be rolled over from one year to the next. 
B) HSAs expire on an annual basis but FSAs continue perpetually. 
C) FSAs expire annually but HSAs may be reserved for use late in life. 
D) Only HSAs may be deducted from employee on a pre-tax basis.

Question 10

________ benefits are fringe benefits with minimal value.

Accepted Answer

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

Question 11

Premiums for insurance purchased through qualified cafeteria plans may be deducted from an employee's pay on a pre-tax basis.

Accepted Answer

A) True 
 B)False

Question 12

________ is the price that a person would pay for an item in an arm's length transaction.

Accepted Answer

A) General valuation 
B) Manufacturer's Suggested Retail Price 
C) De Minimis 
D) Fair Market Value 
A) General valuation 
B) Manufacturer's Suggested Retail Price 
C) De Minimis 
D) Fair Market Value

Question 13

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 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. )

Accepted Answer

A) $1,252.48 
B) $1,092.27 
C) $875.14 
D) $546.13 
A) $1,252.48 
B) $1,092.27 
C) $875.14 
D) $546.13

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

According to the Affordable Health Care Act,employers with ________ or more employees are required to file an informational return with the IRS and a detailed summary to the employees.

Accepted Answer

A) 10 
B) 50 
C) 100 
D) 150 
A) 10 
B) 50 
C) 100 
D) 150

Question 16

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

Accepted Answer

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

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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 19

As a general rule,when should the employer deposit money associated with employee benefits?

Accepted Answer

A) When the employee demands the benefit. 
B) When the benefit is made available. 
C) Immediately upon receipt. 
D) When other tax deposits are made. 
A) When the employee demands the benefit. 
B) When the benefit is made available. 
C) Immediately upon receipt. 
D) When other tax deposits are made.

Question 20

What options do employers have regarding taxable fringe benefits? (You may select more than one answer. )

Accepted Answer

A) Add the value of the fringe benefit to period pay and tax it at that time. 
B) Add it to a single pay period and tax it at the 25% income tax rate. 
C) Add it as a line item for employees to remit individually. 
D) Add it to the employee's W-2 in one lump sum. 
A) Add the value of the fringe benefit to period pay and tax it at that time. 
B) Add it to a single pay period and tax it at the 25% income tax rate. 
C) Add it as a line item for employees to remit individually. 
D) Add it to the employee's W-2 in one lump sum.

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

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?

All employee contributions to qualified Premium-Only Plans (POP)and Flexible Spending Arrangements (FSA)are deducted on a pre-tax basis.

Which of the following is an example of a post-tax mandated deduction? (You may select more than one answer. )

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

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

Which of the following are post-tax deductions? (You may select more than one answer. )

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

________ benefits are fringe benefits with minimal value.

Premiums for insurance purchased through qualified cafeteria plans may be deducted from an employee's pay on a pre-tax basis.

________ is the price that a person would pay for an item in an arm's length transaction.

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

According to the Affordable Health Care Act,employers with ________ or more employees are required to file an informational return with the IRS and a detailed summary to the employees.

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

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.

As a general rule,when should the employer deposit money associated with employee benefits?

What options do employers have regarding taxable fringe benefits? (You may select more than one answer. )

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

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Exam 4: Fringe Benefits and Voluntary Deductions

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

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?

All employee contributions to qualified Premium-Only Plans (POP)and Flexible Spending Arrangements (FSA)are deducted on a pre-tax basis.

Which of the following is an example of a post-tax mandated deduction? (You may select more than one answer. )

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

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

Which of the following are post-tax deductions? (You may select more than one answer. )

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

________ benefits are fringe benefits with minimal value.

Premiums for insurance purchased through qualified cafeteria plans may be deducted from an employee's pay on a pre-tax basis.

________ is the price that a person would pay for an item in an arm's length transaction.

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

According to the Affordable Health Care Act,employers with ________ or more employees are required to file an informational return with the IRS and a detailed summary to the employees.

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

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.

As a general rule,when should the employer deposit money associated with employee benefits?

What options do employers have regarding taxable fringe benefits? (You may select more than one answer. )

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