ADP Employee Benefits Administration

Question 1

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

Accepted Answer

Health Savings Account (HSA)

Answer

401(k) deferrals

Answer

Group term life insurance over $50,000

Answer

Supplemental wages

Question 2

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

Accepted Answer

Benefits Enrollment Workflow

Answer

Payroll Event Trigger

Answer

Employee Self-Service Portal

Answer

Open Enrollment Override

Question 3

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

Accepted Answer

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

Answer

Excluded from all taxes as a fringe benefit

Answer

Reported separately on Form 1099-MISC

Answer

Deducted as a pre-tax benefit on the paystub

Question 4

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

Accepted Answer

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

Answer

To automatically enroll employees in Medicare at age 65

Answer

To manage short-term disability benefit payments

Answer

To calculate FMLA leave entitlements

Question 5

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

Accepted Answer

Benefits Deduction Summary Report

Answer

Payroll Register Detail Report

Answer

Employee Master File Report

Answer

Tax Liability Report

Question 6

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

Accepted Answer

$3,200

Answer

$2,850

Answer

$3,650

Answer

$5,000