Practice Test GeeksCPP - Certified Payroll Professional Practice Test
← All CPP Flashcard Decks

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. What is the maximum annual benefit exclusion for employer-provided dependent care assistance under IRC Section 129?

    Answer: $2,500 for married filing separately

    Married employees filing separately may exclude up to $2,500; married filing jointly and single filers may exclude up to $5,000.

  2. Which form must employers use to report ACA health coverage information to the IRS for applicable large employers?

    Answer: Form 1094-C and 1095-C

    ALEs use Forms 1094-C (transmittal) and 1095-C (employee statement) to report employer-sponsored health coverage to the IRS.

  3. An employee's group term life insurance coverage is $120,000. The employee is age 47. What amount is included in the employee's gross income?

    Answer: The cost of coverage exceeding $50,000 using IRS Table I rates

    Coverage above $50,000 results in income inclusion calculated using IRS Table I uniform premium rates based on the employee's age.

  4. Under ERISA, what is the maximum vesting period allowed for employer contributions under a cliff vesting schedule in a qualified retirement plan?

    Answer: 3 years

    ERISA requires that cliff vesting for employer contributions occur no later than 3 years of service for plans subject to current vesting rules.

  5. Which of the following is a qualifying event that triggers COBRA continuation coverage for a spouse?

    Answer: Divorce or legal separation from the covered employee

    Divorce or legal separation from the covered employee is a COBRA qualifying event that allows the spouse to elect continuation coverage.

  6. What W-2 box and code is used to report the cost of employer-sponsored health coverage?

    Answer: Box 12, Code DD

    The aggregate cost of employer-sponsored health coverage must be reported in Box 12 using Code DD on Form W-2.

  7. A Flexible Spending Account (FSA) grace period provision allows participants to use funds remaining at year-end for how long after the plan year ends?

    Answer: 2.5 months

    The FSA grace period option allows up to 2.5 months after the plan year ends to incur expenses using prior-year funds.