ADP Employee Benefits Administration 2

Question 1

What ADP configuration step is required to ensure employer HSA contributions are excluded from FICA taxes?

Accepted Answer

Set the employer HSA contribution as a non-taxable benefit code exempt from Social Security and Medicare

Answer

Mark the HSA as a post-tax deduction

Answer

Enter the HSA in Box 14 of the W-2

Answer

Include the HSA in the supplemental wage calculation

Question 2

Which ADP tool allows employees to view their benefits elections, change voluntary deductions, and update beneficiaries?

Accepted Answer

ADP Employee Self-Service (ESS)

Answer

ADP SmartCompliance

Answer

ADP Workforce Now Admin Panel

Answer

ADP TotalPay Portal

Question 3

What does 'benefits in kind' mean in the context of ADP payroll and why does it matter?

Accepted Answer

Non-cash compensation (like a company car) that must be valued and added to taxable wages

Answer

A type of employer match in a 401(k) plan

Answer

A cash bonus paid in lieu of a benefit

Answer

An exempt fringe benefit under Section 132

Question 4

In ADP, when an employee elects a dependent care FSA, what is the 2024 IRS contribution limit for a married couple filing jointly?

Accepted Answer

$5,000

Answer

$10,500

Answer

$3,200

Answer

$2,500

Question 5

Which ADP report confirms that an employee's year-to-date benefit deductions match their benefit elections on file?

Accepted Answer

Benefits Enrollment vs. Deductions Reconciliation Report

Answer

W-2 Preview Report

Answer

Payroll Summary Report

Answer

Labor Distribution Report

Question 6

What is the ADP-recommended process to handle a benefits deduction that was missed due to a payroll error?

Accepted Answer

Process a retroactive adjustment in the next pay period after confirming the employee's written consent if the amount exceeds normal deduction limits

Answer

Re-run the entire payroll for the affected period

Answer

Ignore the missed deduction and notify the carrier

Answer

Reduce the employee's next bonus by the missed amount