Payroll Benefits and Retirement Plans Flashcards
6 cards from real Fundamental Payroll Certification practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Payroll Benefits and Retirement Plans flashcards as text
Employer-provided group-term life insurance becomes taxable to the employee when coverage exceeds what amount?
Answer: $50,000
The cost of employer-provided group-term life insurance exceeding $50,000 in coverage must be included in the employee's taxable wages.
What is the annual employer-provided dependent care assistance exclusion limit under Section 129?
Answer: $5,000
The annual exclusion limit for employer-provided dependent care assistance under Section 129 is $5,000 ($2,500 for married filing separately).
Which fringe benefit is generally excluded from an employee's taxable income?
Answer: De minimis meals provided on employer premises for the employer's convenience
Meals provided on the employer's premises primarily for the employer's convenience qualify as a de minimis fringe benefit excluded from income.
Under COBRA, who is responsible for paying the premium for continuation coverage?
Answer: The former employee, up to 102% of the group plan cost
Under COBRA, the qualified beneficiary generally pays the full group plan premium plus up to a 2% administrative fee.
When an employee has personal use of a company-provided vehicle, the value of that personal use is:
Answer: Taxable compensation included in gross income
The fair market value of personal use of a company vehicle must be included in the employee's taxable wages as compensation.
In payroll, 'imputed income' refers to:
Answer: The taxable value of non-cash benefits included in gross income
Imputed income is the fair market value of non-cash benefits or perks that must be added to an employee's taxable wages.
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