Betty's CPP Section 3 Quiz TAXABLE & NON TAX COMPENSATION

Question 1

1. All of the following benefits are nontaxable fringe benefits except:

Answer 1

C. Employer-paid membership fees to an athletic club

Question 2

2. All of the following benefits are working condition fringe benefits except:

Answer 2

D. Dependent care assistance

Question 3

3. All of the following benefits are de minimis fringe benefits except:

Answer 3

B. Subscriptions to business periodicals

Question 4

6. The IRS-approved rate for employer-provided fuel for 2024 is:

Answer 4

.055 CENTS for pers miles ER prov fuel

Question 5

7. An employer must withhold on group-term life insurance in excess of $50,000 for which of the following taxes?

Answer 5

A. Social security and Medicare taxes only

Question 6

8. Which of the following conditions need not be met for job-related educational assistance to be excluded from income?

Answer 6

C. Must be covered by an Educational Assistance Program

Question 7

9. Under the “fixed-date” method for substantiating business travel expenses, an advance can be provided no more than how many days before an expense is incurred?

Answer 7

D. 30 days

Question 8

David has child and dependent care expenses of $6,500 during 2024 and his employer reimburses him in full during the same year. How much of the reimbursement is taxable to David for 2024?

Answer 8

A. $1,500 ($5,000 annual non tax limit on reimbursement)

Question 9

All of the following expenses incurred while on business travel qualify as a travel expense except:

Answer 9

B. Gift purchased for a prospective customer