CPS Benefits & Deductions Management Flashcards
6 cards from real CPS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CPS Benefits & Deductions Management flashcards as text
What is the Social Security (OASDI) wage base limit for 2025?
Answer: $176,100
For 2025, the Social Security wage base is $176,100, meaning OASDI tax is only withheld on earnings up to this amount.
Under Section 132 of the IRC, which fringe benefit allows employers to provide tax-free transit passes up to a monthly IRS limit?
Answer: Qualified transportation fringe benefit
Section 132(f) qualified transportation fringe benefits allow employers to provide commuter transit passes, vanpooling, and qualified parking on a pre-tax basis up to monthly IRS limits.
Which of the following best describes 'imputed income' in the context of payroll?
Answer: The taxable value of non-cash fringe benefits that must be added to gross income for tax purposes
Imputed income is the taxable value assigned to non-cash benefits—such as group term life insurance over $50,000 or domestic partner health coverage—that must be reported as taxable wages.
For group-term life insurance provided by an employer, which IRS table is used to calculate the imputed income on coverage exceeding $50,000?
Answer: IRS Table I (Uniform Premiums for $1,000 of Protection)
The IRS uses Table I from Publication 15-B to determine the monthly imputed income cost per $1,000 of employer-provided group-term life insurance above the $50,000 exclusion.
When an employee's Section 401(k) elective deferral exceeds the IRS annual limit, what must the employer do by April 15 of the following year?
Answer: Distribute the excess deferral plus earnings back to the employee
Excess 401(k) deferrals must be returned to the employee, along with any earnings attributable to the excess, by April 15 of the year following the year of deferral to avoid double taxation.
Which IRS form must employers file to report health coverage information for ACA compliance as an applicable large employer?
Answer: Form 1094-C and Form 1095-C
ALEs must file Form 1094-C (transmittal) and furnish Form 1095-C to each full-time employee annually to report employer-sponsored health coverage for ACA compliance.