Other Employee Benefits Flashcards
What noncash fringe benefits provided by an employer are taxable to the employee?
The personal use of a company airplane or automobile, or company lodging
No-additional-cost services and qualified employee discounts to highly paid employees if such discounts are not available to rank-and-file employees
Country club dues paid on behalf of an employee
Season tickets to theatrical or sporting events furnished by the employer
What is the withholding tax on taxable fringe benefits
25%
3 categories of noncash fringe benefits that will not be considered taxable income to an employee
Workers’ compensation
individual to recover damages from an employer who may or may not have been negligent.
five general principles upon which all workers compensation laws are based
Negligence is not a factor in determining liability.
Indemnity is partial but final
Periodic payments are usually made.
Cost of the program is made a cost of production.
Insurance is required.
Seven classes of benefits are payable to injured workers
Medical expenses.
Total temporary disability.
Partial temporary disability. .
Total permanent disability. .
Survivors death benefits.
Rehabilitation benefits.
How long are unemployment benefits are paid out for?
26 weeks
Unemployment Income tax
Unemployment compensation is replacing lost wages and, therefore, is subject to income taxes.
Prepaid legal services
Fringe benefit that makes legal services available to employees.
Examples are bankruptcy assistance, adoption assistance, divorce legal fee assistance, and the preparation of estate planning documents.
Educational benefit trust
This plan is used to defray the educational expenses of employees’ children.
Contractual death benefit
Employer-paid death benefit included in a qualified plan or deferred compensation contract. Frequently funded through life insurance. The policy may be owned by and payable to the employer
taxed as compensation.
Voluntary death benefit
This benefit is not based on the contract. It may be in the form of a gift or additional compensation paid to the spouse.
not taxable if characterized as a gift to the widow(er). The employer can deduct it if it’s deemed an ordinary and necessary business expense but not if it’s treated as a gift.
Which of the following classes of benefits are payable to injured workers or their dependents under the workers’ compensation laws?
I. Medical expenses
II. Survivors death benefits
III. Total permanent disability
IV. Partial temporary disability
A. I and II
B. I and III
C. III and IV
D. I, II, III, and IV
D
Medical expenses, which account for about a third of all benefits paid under workers’ compensation, are payable. Survivors death benefits are generally paid as a weekly sum for a surviving spouse for life or until remarriage, without a dollar limit, depending upon the state involved. Being disabled totally and permanently is also covered. Benefits are payable for someone who is only partially disabled and typically unable to pursue their own occupation but is able to engage in some other type of work.
Which of the following benefits may be included in a prepaid legal services plan?
I. IRS audit representation fees
II. Preparation of wills
III. Bankruptcy assistance
IV. Divorce services
A. I and II
B. II, III, and IV
C. II and III
D. I and III
B
All of these services are commonly offered in prepaid legal plans. IRS audit services are a highly specialized area that may or may not be offered by a prepaid legal service.
Which of the following are classes of benefits payable under workers’ compensation laws?
I. Rehabilitation benefits
II. Disability benefits
III. Survivors death benefits
IV. Medical expenses
A. I and III
B. II and IV
C. I, II, III, and IV
D. I and IV
C
