FPC Payroll Benefit Basics 4.1 - 4.3 Questions & Answers
Fringe Benefits are
Included in an employee's taxable compensation
Fringe benefits withhold
Federal income tax
Social Security tax
Medicare tax
Previous
Play
Next
Rewind 10 seconds
Move forward 10 seconds
Unmute
0:0...
FPC Payroll Benefit Basics 4.1 - 4.3
Questions & Answers
Fringe Benefits are - answer Included in an employee's taxable compensation
Fringe benefits withhold - answer Federal income tax
Social Security tax
Medicare tax
Taxable Compensation (federal) - answer back pay
bonuses
commissions
company vehicle (personal use)
dismissal, severance pay and final vacation pay
employer paid transit passes and transportation in a commuter highway vehicle in
excess of $255/month
employer paid parking greater than $255/month
fringe benefits (unless specifically excluded)
gifts, gift certificates, prizes and awards
group legal services
group-term life insurance over $50,000
nonaccountable reimbursed business expenses
noncash fringes, unless excluded by IRS Code
nonqualified moving expenses
overtime pay
regular wages
sick pay and disability benefits (portion attributable to employer contributions
tips
Nontaxable Compensation (federal) - answer dependent child care assistance (up to
$5,000) under a Section 129 plan
company vehicle (business use only)
de minimis fringes
disability benefits (employee contributions)
educational assistance for job-related courses (no limit)
group-term life insurance premiums ($50,000 or less of coverage)
medical/dental/health plans (employer contributions)
no-additional cost fringes
qualified employee discounts on employer goods/services
qualified moving expenses
qualified transportation fringes
reimbursed business expenses (if accounted for in a timely manner)
working condition fringes which would be deductible if paid by the employee
, non-job related education assistance up to $5,250 under a qualified plan
long term care insurance
health savings accounts
Gross Income - answer includes everything received from the employer in payment
for services for the employer
All forms of compensation are - answer included in gross income, including fringe
benefits
IRS defines wages subject to taxation as - answer all compensation an employee
receives for services performed by that employee for the employer. This included both
payments made in cash and payments in any other form, such as salaries, vacation,
bonuses, commissions and fringe benefits. Compensation paid by noncash methods is
used at the fair market value to the employee
Neither the IRC or IRS regulations have specifically defined fringe benefits because -
answer employers may be able to identify a new fringe benefit that would not meet
the definition.
IRS has stated that any - answer accession to wealth provided by the employer to
the employee for services performed is considered wages and subject to taxation
Fair market value of a fringe benefit is - answer the amount the employee would
have paid a third party to buy or lease the fringe benefit
Fair market value of any non-cash item received as compensation for services
performed less any employee after-tax contribution - answer must be included in the
employee's income unless specifically excluded by law
Generally, the fair market value of a fringe benefit is - answer determined on the
basis of facts and circumstances.
Two statements to keep in mind when determining the value of a benefit: - answer
The employee's perceived value of the benefit is not relevant.
The amount the employer paid for the benefit is not a determining factor.
Imputed Income represents - answer the value of the taxable benefits employees
receive from the employer and must be included in the employee's income. In most
cases, employee's do not receive cash as a benefit.
Employers are required to impute income - answer to employees for each taxable
non-cash benefit received by the employee.
Imputing income reduces employees' - answer net pay by increasing taxes.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Pogba119. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
