CPS CPS Benefits & Deductions Management 2

Question 1

What is the maximum annual employee contribution limit for a Health Savings Account (HSA) for self-only coverage in 2025?

Accepted Answer

$4,300

Answer

For 2025, the IRS set the HSA contribution limit at $4,300 for self-only HDHP coverage and $8,550 for family coverage.

Question 2

When processing a garnishment order, which federal law limits the amount that can be deducted from an employee's disposable earnings for a single creditor?

Accepted Answer

Consumer Credit Protection Act (CCPA) Title III

Answer

Title III of the CCPA limits garnishment to the lesser of 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage.

Question 3

Which of the following is NOT a qualifying event that triggers COBRA continuation rights under federal law?

Accepted Answer

Employee reaching age 65 and enrolling in Medicare

Answer

While Medicare entitlement can be a qualifying event for dependents, an employee's own enrollment in Medicare is specifically excluded as a COBRA qualifying event for the employee.

Question 4

A Health Flexible Spending Account (HFSA) is subject to which IRS rule that limits the carryover of unused funds?

Accepted Answer

The 'use-it-or-lose-it' rule, with limited employer-allowed carryover options

Answer

FSAs are governed by the 'use-it-or-lose-it' rule, though employers may offer a grace period or allow a limited carryover amount as permitted by the IRS.

Question 5

Under the ACA's employer shared responsibility (pay-or-play) provisions, which employers are considered 'applicable large employers' (ALEs)?

Accepted Answer

Employers with 50 or more full-time equivalent employees

Answer

Under the ACA, employers with 50 or more full-time equivalent (FTE) employees are classified as ALEs and must offer minimum essential coverage or face potential penalties.

(CPS) Certified Payroll Specialist Practice Test

(CPS) Certified Payroll Specialist Practice Test

CPS CPS Benefits & Deductions Management 2