OCPS Employee Compensation & Benefits Administration 2

Question 1

An employee's cafeteria plan allows them to choose between taxable cash and qualified benefits. Under IRC Section 125, employer contributions to which benefit remain excludable from gross income?

Accepted Answer

Health FSA contributions within annual limits

Answer

Employer contributions to a Health FSA within IRS limits are excludable from gross income under a Section 125 cafeteria plan.

Question 2

A nonexempt employee works 46 hours in a workweek at $18/hour. What is the total gross pay?

Accepted Answer

$855.00

Answer

Regular pay is 40 × $18 = $720; overtime pay is 6 × $27 = $162; total = $882. Wait—40×18=720, 6×27=162, total=$882.

Question 3

Which IRS form is used to report employer-provided adoption assistance benefits paid to an employee?

Accepted Answer

Form W-2 Box 12 Code T

Answer

Employer-provided adoption assistance is reported in Box 12 of Form W-2 using Code T.

Question 4

Under the ACA employer mandate, applicable large employers (ALEs) must offer minimum essential coverage to at least what percentage of full-time employees to avoid the Section 4980H(a) penalty?

Accepted Answer

95%

Answer

ALEs must offer MEC to at least 95% of full-time employees to avoid the Section 4980H(a) 'sledgehammer' penalty.

Question 5

A company provides employees with $300/month in qualified transportation benefits (transit passes). How much of this benefit is excludable from income in 2024?

Accepted Answer

$300/month up to the annual IRS limit

Answer

For 2024, up to $315/month in qualified transit pass benefits is excludable; the $300 amount falls within this limit.

(OCPS) Online Certified Payroll Systems Certified Professional Practice Test

(OCPS) Online Certified Payroll Systems Certified Professional Practice Test

OCPS Employee Compensation & Benefits Administration 2