CPB / BookKeeping Payroll and Tax Reporting 4

Question 1

Which of the following fringe benefits is generally EXCLUDED from an employee's gross income?

Accepted Answer

Employer-paid health insurance premiums

Answer

Employer-paid health insurance premiums are excluded from employees' gross income under IRC Section 106.

Question 2

A tip-earning employee who receives more than $20 in tips during a month must report those tips to the employer by:

Accepted Answer

The 10th day of the following month

Answer

Employees who receive $20 or more in tips in a calendar month must report them to the employer by the 10th day of the following month.

Question 3

Under FLSA rules, which employees are generally EXEMPT from overtime pay requirements?

Accepted Answer

Employees earning at least $684/week in a bona fide executive role

Answer

To qualify for the white-collar exemption, employees must earn at least $684 per week ($35,568/year) and meet the duties test for executive, administrative, or professional roles.

Question 4

What is the tax treatment of employer contributions to an employee's Health Savings Account (HSA)?

Accepted Answer

Excluded from income up to statutory limits

Answer

Employer HSA contributions are excluded from the employee's gross income, wages, and FICA taxes, up to the annual contribution limits.

Question 5

A semi-weekly depositor has a payroll tax liability that arises on a Wednesday. By which day must the deposit be made?

Accepted Answer

The following Friday

Answer

For semi-weekly depositors, liabilities arising on Wednesday, Thursday, or Friday must be deposited by the following Friday.

CPB / BookKeeping Practice Test

CPB / BookKeeping Practice Test

CPB / BookKeeping Payroll and Tax Reporting 4