Question 1

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

Accepted Answer

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

Question 2

Frances McNale is an employee who drives a 2017 Ford C-Max with a fair-market value of $29,500.The lease value is $7,750,according to Publication 15-b.If the car was available for 150 days during the year,what is the prorated annual lease percentage,using the lease-value rule? (Do not round intermediate calculations,only round final answer to two decimal points. )

Accepted Answer

A) 35.63% 
B) 39.82% 
C) 41.10% 
D) 42.39% 
A) 35.63% 
B) 39.82% 
C) 41.10% 
D) 42.39%

Question 3

The reporting of employee benefits occurs on the ________ and the ________.(You may select more than one answer. )

Accepted Answer

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

Question 4

Post-Tax Deductions are amounts ________.

Accepted Answer

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

Question 5

Which of the following is an includible medical expense,according to Publication 502? (You may select more than one answer. )

Accepted Answer

A) Ambulance service 
B) Braille books and magazines 
C) Over-the-counter medicines 
D) Hearing aids 
A) Ambulance service 
B) Braille books and magazines 
C) Over-the-counter medicines 
D) Hearing aids

Question 6

Which of the following is true about 401(k)retirement plans?

Accepted Answer

A) All 401(k)plans are cafeteria plans. 
B) 401(k)plans are exempt from all payroll taxes. 
C) 401(k)plans always reduce income tax liability. 
D) 401(k)plans are usually subject to FICA taxes. 
A) All 401(k)plans are cafeteria plans. 
B) 401(k)plans are exempt from all payroll taxes. 
C) 401(k)plans always reduce income tax liability. 
D) 401(k)plans are usually subject to FICA taxes.

Question 7

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

Accepted Answer

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

Question 8

Which of the following is/are hallmarks of fringe benefits? (You may select more than one answer. )

Accepted Answer

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

Question 9

Specific fringe benefit exclusion rules are found in Publication 15.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

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

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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 13

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

Accepted Answer

A) The IRS 
B) The state in which the business is located 
C) The employee 
D) The employer 
A) The IRS 
B) The state in which the business is located 
C) The employee 
D) The employer

Question 14

Fringe benefits and employee satisfaction have no correlation.

Accepted Answer

A) True 
 B)False

Question 15

According to Bureau of Labor Statistics,what percentage additional compensation is offered in fringe benefits?

Accepted Answer

A) 10-18% 
B) 15-23% 
C) 21-29% 
D) 25-33% 
A) 10-18% 
B) 15-23% 
C) 21-29% 
D) 25-33%

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

The reporting of employee benefits occurs on the and the .(You may select more than one answer. )

Post-Tax Deductions are amounts ________.

Which of the following is an includible medical expense,according to Publication 502? (You may select more than one answer. )

Which of the following is true about 401(k)retirement plans?

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

Which of the following is/are hallmarks of fringe benefits? (You may select more than one answer. )

Specific fringe benefit exclusion rules are found in Publication 15.

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

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

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

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

Fringe benefits and employee satisfaction have no correlation.

According to Bureau of Labor Statistics,what percentage additional compensation is offered in fringe benefits?

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

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

The reporting of employee benefits occurs on the ________ and the ________.(You may select more than one answer. )

Post-Tax Deductions are amounts ________.

Which of the following is an includible medical expense,according to Publication 502? (You may select more than one answer. )

Which of the following is true about 401(k)retirement plans?

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

Which of the following is/are hallmarks of fringe benefits? (You may select more than one answer. )

Specific fringe benefit exclusion rules are found in Publication 15.

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

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

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

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

Fringe benefits and employee satisfaction have no correlation.

According to Bureau of Labor Statistics,what percentage additional compensation is offered in fringe benefits?

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

The reporting of employee benefits occurs on the and the .(You may select more than one answer. )