APA Benefits and Compensation 2

Question 1

Under COBRA, what is the maximum continuation coverage period for a qualified beneficiary who loses coverage due to the covered employee's termination of employment?

Accepted Answer

18 months

Answer

29 months

Answer

36 months

Answer

60 months

Question 2

An employee's Section 125 cafeteria plan election is irrevocable during the plan year EXCEPT when a qualifying life event occurs. Which of the following is NOT a qualifying change in status?

Accepted Answer

Employee receives a salary increase

Answer

Change in employee's marital status

Answer

Change in number of dependents

Answer

Change in dependent's eligibility

Question 3

What is the IRS annual limit for employee contributions to a Health Savings Account (HSA) for self-only HDHP coverage in 2024?

Accepted Answer

$4,150

Answer

$3,850

Answer

$8,300

Answer

$7,750

Question 4

Which type of nonqualified deferred compensation plan allows executives to defer salary into a plan that is funded and protected from the employer's creditors?

Accepted Answer

Secular trust

Answer

Rabbi trust

Answer

Top-hat plan

Answer

457(f) plan

Question 5

For FUTA purposes, which type of payment is excluded from the definition of wages?

Accepted Answer

Group-term life insurance premiums up to $50,000 coverage

Answer

Overtime pay

Answer

Vacation pay

Answer

Sick pay paid by the employer

Question 6

A nonqualified stock option (NSO) granted to an employee is generally taxable at which point?

Accepted Answer

When the option is exercised

Answer

When the option is granted

Answer

When the option vests

Answer

When the stock is sold

Question 7

Under the FLSA, which employees are generally exempt from overtime pay requirements under the 'white-collar' exemptions?

Accepted Answer

Employees paid on a salary basis at least $684 per week in bona fide executive, administrative, or professional roles

Answer

Employees earning more than $10 per hour

Answer

All salaried employees regardless of duties

Answer

Employees who work fewer than 40 hours per week