Employee Benefits Administration Flashcards

In ADP, which benefit type requires Section 125 Cafeteria Plan setup to allow pre-tax employee contributions?

Answer: Health Savings Account (HSA)

HSAs funded through payroll deductions via a Section 125 Cafeteria Plan are excluded from federal income, Social Security, and Medicare taxes.

Which ADP feature is used to automate benefits deduction changes when an employee experiences a qualifying life event?

Answer: Benefits Enrollment Workflow

ADP's Benefits Enrollment Workflow allows administrators to route mid-year benefit changes triggered by qualifying life events through an automated approval process.

An employee's group term life insurance coverage exceeds $50,000. How is the imputed income reported?

Answer: Added to taxable wages on the W-2 in Box 12 with code C

IRS regulations require that the cost of employer-provided group term life insurance exceeding $50,000 be included in the employee's taxable wages and reported in Box 12, Code C on Form W-2.

What is the primary purpose of COBRA administration within ADP's benefits module?

Answer: To notify and bill qualified beneficiaries for continued health coverage after a qualifying event

COBRA administration in ADP manages election notices, premium billing, and coverage continuation for employees who lose group health coverage due to qualifying events.

Which ADP report is most useful for auditing benefit deduction amounts against carrier invoices?

Answer: Benefits Deduction Summary Report

The Benefits Deduction Summary Report lists each benefit plan's total employee and employer deductions by pay period, enabling reconciliation against carrier invoices.

When setting up an FSA (Flexible Spending Account) in ADP, what is the IRS annual contribution limit for a healthcare FSA in 2024?

Answer: $3,200

For 2024, the IRS set the healthcare FSA contribution limit at $3,200 per employee.