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Benefits Administration Flashcards

7 cards from real CPP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Benefits Administration flashcards as text

  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?

    Answer: 18 months

    COBRA provides 18 months of continuation coverage when coverage is lost due to termination of employment or reduction in hours.

  2. Which section of the Internal Revenue Code governs cafeteria plans that allow employees to choose between taxable and non-taxable benefits?

    Answer: Section 125

    IRC Section 125 governs cafeteria plans, allowing employees to pay for qualifying benefits with pre-tax dollars.

  3. An employee enrolls in a Health FSA and elects $2,400 for the plan year. After two months, they have spent $600 and leave the company. How much can the employer recover?

    Answer: $600

    Under the uniform coverage rule, the employer can only recover the amount already reimbursed ($600) minus contributions made, net of what was contributed.

  4. What is the IRS annual contribution limit for a Health Savings Account (HSA) for an individual with self-only HDHP coverage in 2024?

    Answer: $4,150

    For 2024, the HSA contribution limit for self-only HDHP coverage is $4,150.

  5. Which of the following benefits is subject to FICA taxes when provided by an employer?

    Answer: Cash bonuses paid to employees

    Cash bonuses are wages subject to FICA; employer 401(k) contributions, health premiums, and group term life up to $50,000 are excluded.

  6. Under the ACA employer shared responsibility provisions, what is the threshold of full-time equivalent employees that makes an employer an 'applicable large employer' (ALE)?

    Answer: 50 FTEs

    An employer with 50 or more full-time equivalent employees is an applicable large employer subject to ACA employer mandate provisions.

  7. When must an employer notify employees of their COBRA rights following a qualifying event?

    Answer: Within 44 days of the employer learning of the event

    The plan administrator must send the COBRA election notice within 14 days of receiving notice of the qualifying event, giving a total maximum of 44 days from the event.