Question 1

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

Question 2

According to the Consumer Credit Protection Act, what is the maximum percentage of an employee's disposable earnings that may be withheld as part of a consumer credit garnishment?

Accepted Answer

A) 25% 
B) 40% 
C) 35% 
D) 50%

Question 3

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?

Accepted Answer

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

Question 4

According to Consumer Credit Protection Act, what is a limit on the amount of a garnishment for consumer credit?

Accepted Answer

A) It must be a minimum of 10% of an employee's annual salary. 
B) It cannot exceed 25% of an employee's disposable income. 
C) It may be 75% of the employee's disposable income. 
D) It must be less than 50% of an employee's gross earnings.

Question 5

What is the major limitation of a SIMPLE retirement plan?

Accepted Answer

A) SIMPLE plans are subject to all payroll taxes. 
B) Employee contributions to the plan are limited. 
C) SIMPLE plan funds must be invested in stock market securities. 
D) It is limited to ﬁrms with 100 or fewer employees.

Question 6

Over ____ of U.S. employees report that fringe beneﬁts affect their choice of employers.

Accepted Answer

A) 25% 
B) 10% 
C) 40% 
D) 50%

Exam 4: Income Tax Withholding

According to the Consumer Credit Protection Act, what is the maximum percentage of an employee's disposable earnings that may be withheld as part of a consumer credit garnishment?

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?

According to Consumer Credit Protection Act, what is a limit on the amount of a garnishment for consumer credit?

What is the major limitation of a SIMPLE retirement plan?

Over ____ of U.S. employees report that fringe beneﬁts affect their choice of employers.