CPP Benefits Administration 3

Question 1

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

Accepted Answer

$2,500 for married filing separately

Answer

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

Question 2

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

Accepted Answer

Form 1094-C and 1095-C

Answer

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

Question 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?

Accepted Answer

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

Answer

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

Question 4

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

Accepted Answer

3 years

Answer

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

Question 5

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

Accepted Answer

Divorce or legal separation from the covered employee

Answer

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

CPP - Certified Payroll Professional Practice Test