Chap 4 Quiz

Question 1

The ________ determines when benefit amounts should be withheld from employee pay.

Multiple Choice

• IRS
• employer
• State in which the business is conducted
• employee

Answer 1

employer

Question 2

Under the unsafe conditions rule:

Multiple Choice

• an employee may use a company vehicle for a one-way commute.
• employees may leave work at any time.
• employees are charged $1.50 for the one-way commute.
• employees may only use company cars if their normal travel mode is unsafe.

Answer 2

employees are charged $1.50 for the one-way commute.

Question 3

Contributions to FSAs in excess of what annual amount are treated as taxable income?

Multiple Choice

$2,650

$2,750

$2,450

$2,550

Answer 3

$2,750

Question 4

Which of the following are post-tax deductions?

Which Apply?
- Employee contributions to gym memberships

• Employee contributions to charitable organizations
• Employee contributions to 401(k) plans
• Employee contributions to union dues

Answer 4

• Employee contributions to gym memberships
• Employee contributions to charitable organizations
• Employee contributions to union dues

Question 5

As a general rule, when should the employer deposit money associated with employee benefits?

Multiple Choice

• When the employee demands the benefit.
• When the benefit is made available.
• When other tax deposits are made.
• Immediately upon receipt.

Answer 5

When the benefit is made available.

Question 6

Under the lease-value rule, how is the taxable income for the employee determined?

Check all that apply:

• Subtract the dollar amount of the fuel used.
• Multiply the lease amount by the percent of personal usage of the vehicle.
• Multiply the lease amount by the percent of business usage of the vehicle.
• Use the annual lease value amount for the vehicle from Publication 15b.

Answer 6

• Multiply the lease amount by the percent of personal usage of the vehicle.
• Use the annual lease value amount for the vehicle from Publication 15b.

Question 7

Which of the following is an includible medical expense, according to Publication 502?

Which apply?

• Braille books and magazines
• Hearing aids
• Over-the-counter medicines
• Ambulance service

Answer 7

• Braille books and magazines
• Hearing aids
• Ambulance service

Question 8

The Families First Coronavirus Response Act mandated employer responsibility for mandated additional fringe benefits until_________.

Multiple Choice

September 30, 2020

July 31, 2020

May 1, 2020

December 31, 2020

Answer 8

December 31, 2020

Question 9

If a fringe benefit involves a deduction from employee pay, which of the following is true?

Multiple Choice

• Employers may only offer the benefit to certain classes of employees.
• The amount of the deduction must be listed on the employee’s pay advice.
• The employee must enroll in direct deposit for their pay.
• The fringe benefit must be subject to income tax.

Answer 9

The amount of the deduction must be listed on the employee’s pay advice.

Question 10

The Families First Coronavirus Response Act included the following that employers with fewer than 500 employees provided certain benefits, including:

• Full-time pay for all employees who were unable to telecommute because of symptoms.
• Provision of diagnostic testing at no cost to employees.
• Employer-sponsored unemployment programs if business operations decreased due to health concerns.
• Paid sick leave for both part-time and full-time employees.

Answer 10

• Provision of diagnostic testing at no cost to employees.
• Paid sick leave for both part-time and full-time employees.