CPP Benefits Administration 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

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

Question 2

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

Accepted Answer

Section 125

Answer

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

Question 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?

Accepted Answer

$600

Answer

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

Question 4

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

Accepted Answer

$4,150

Answer

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

Question 5

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

Accepted Answer

Cash bonuses paid to employees

Answer

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

CPP - Certified Payroll Professional Practice Test

CPP - Certified Payroll Professional Practice Test

CPP Benefits Administration 2