Chap 4 Exercises Set B Flashcards
Which of the following fringe benefits is exempt from federal income tax but subject to FICA tax?
Multiple Choice
- Working condition benefits
- Moving expense reimbursements
- Adoption assistance
- Tuition reduction for undergraduate education
Adoption assistance
Robin Mendez is an employee of Pharmiceutics LLC. She is a traveling salesperson who routinely meets with customers at their places of business.
Which of the following fringe benefits would be appropriate for her employer to provide for Robin to conduct business?
- Clothing allowance
- Personal stylist
- Laptop computer
- Company car
- Clothing allowance
- Laptop computer
- Company car
Which of the following is a co-requisite of a health savings account (HSA)?
Multiple Choice
- Multiple health insurance plans held by the same employee
- No employer-provided insurance
- A high deductible health plan
- A flexible spending arrangement
A high deductible health plan
What is the annual maximum amount that an employee may contribute to a flexible savings arrangement before it becomes taxable income?
Multiple Choice
$2,850
$2,250
$2,750
$2,450
$2,750
Alejandro McCarthy is an employee of Shiloh Bakery. His regular commute includes paying a toll for a portion of his route. Shiloh Bakery offers commuter passes as a fringe benefit.
What is the maximum amount that may be excluded from taxes as a fringe benefit?
Multiple Choice
$300
$200
$270
$150
$270
Juan Potter is an employee of Convergent Technologies whose job is strictly based in the company’s office. His employer has authorized his use of a company vehicle for commuting purposes, as necessary.
Which of the general valuation rules would be appropriate to evaluate the value of this fringe benefit?
- Cents-per-mile rule
- Lease value rule
- Commuting rule
- Unsafe conditions rule
- Cents-per-mile rule
- Lease value rule
- ## Commuting rule
Cameron Levitt is the payroll accountant for Glowing Yoga. He is preparing a presentation about Section 125 cafeteria plans.
Which of the following items may qualify for inclusion in a cafeteria plan?
- Education assistance
- Childcare expenses
- Adoption assistance
- Health benefits
- Childcare expenses
- Adoption assistance
- Health benefits
Gabrielle Jackson is the payroll accountant of Choice Bakeries. She is researching retirement plan options for her employer. Choice Bakeries has 77 employees and is a for-profit company.
Which of the following plans should she consider?
- SIMPLE 401(k)
- 403(b)
- 401(k)
- IRA
- SIMPLE 401(k)
- 401(k)
- IRA
Which of the following is/are examples of fringe benefits?
- Vacation packages
- Education assistance (up to $5,250 annually)
- Dependent care assistance (up to $5,000 annually)
- Retirement planning services
- Education assistance (up to $5,250 annually)
- Dependent care assistance (up to $5,000 annually)
- Retirement planning services
Which of the following are always post-tax deductions?
- Retirement plan contributions
- Garnishments
- Charitable contributions
- Qualified health insurance
- Garnishments
- ## Charitable contributions
To which two months does the special accounting rule pertain?
Multiple Choice
- December and January of the following year
- The last two months of the company’s fiscal year
- January and February
- November and December
November and December
