Employer s Tax Guide to Fringe Benefits

Transcription

1 Employer s Tax Guide to Fringe Benefits #7325A EXAM MATERIAL

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3 EMPLOYER S TAX GUIDE TO FRINGE BENEFITS (COURSE #7325A) COURSE DESCRIPTION This course will provide the practitioner with an overview of fringe benefits and the tax issues which surround such. There is a detailed section on fringe benefit exclusion rules, since any fringe benefit that is not excluded is taxable and the distinction is often misunderstood. Information on how to value fringe benefits and guidelines for withholding, depositing, and reporting taxable noncash fringe benefits is also covered. At the conclusion, the practitioner should have all the information necessary to guide them through the taxation issues related to fringe benefits. No prerequisites. Course level: Basic. Course #7325A 3 CPE hours. LEARNING ASSIGNMENTS AND OBJECTIVES As a result of studying each assignment, you should be able to meet the objectives listed below each individual assignment. ASSIGNMENT 1: SUBJECT Fringe Benefit Overview Fringe Benefit Exclusion Rules Study the course materials from pages 1 to 48 Complete the review questions at the end of each chapter Answer the exam questions 1 to 11 Objectives: To identify various cafeteria plan benefits To identify exclusions that apply to some fringe benefits ASSIGNMENT 2: SUBJECT Fringe Benefit Valuation Rules Rules for Withholding, Depositing, and Reporting Study the course materials from pages 49 to 70 Complete the review questions at the end of each chapter Answer the exam questions 12 to 15 Objectives: To recall how to value fringe benefits To recall various requirements for withholding and reporting taxable fringe benefits 7325A Final Exam 1

4 ASSIGNMENT 3: Complete the Answer Sheet and Course Evaluation and submit to PES NOTICE This course and test have been adapted from supplemental materials and information contained in the materials entitled Employer s Tax Guide to Fringe Benefits. Use of these materials or services provided by Professional Education Services, LP ( PES ) is governed by the Terms and Conditions on PES website ( PES provides this course with the understanding that it is not providing any accounting, legal, or other professional advice and assumes no liability whatsoever in connection with its use. PES has used diligent efforts to provide quality information and material to its customers, but does not warrant or guarantee the accuracy, timeliness, completeness, or currency of the information contained herein. Ultimately, the responsibility to comply with applicable legal requirements falls solely on the individual licensee, not PES. PES encourages you to contact your state Board or licensing agency for the latest information and to confirm or clarify any questions or concerns you have regarding your duties or obligations as a licensed professional. Professional Education Services, LP 2016 Program Publication Date 07/22/ A Final Exam

5 EMPLOYER S TAX GUIDE TO FRINGE BENEFITS (COURSE #7325A) - EXAM OUTLINE COURSE EXPIRATION DATE: Per AICPA and NASBA standards, this course must be completed within ONE YEAR from the date of purchase. TEST FORMAT: The following final exam, consisting of 15 multiple choice questions, is based specifically on the material included in this course. The answer sheet must be completed and returned to PES for CPE certification. You will find the answer sheet at the back of this exam packet so that you may easily remove it and use it while taking your test. LICENSE RENEWAL INFORMATION: The Employer s Tax Guide to Fringe Benefits course (#7325A) qualifies for 3 CPE hours. PROCESSING: Your exam will be graded promptly. You must score 70% or better to pass. If you mail or fax your exam, when you pass, your certificate of completion will be mailed. If you do not pass, we will give you a courtesy call to inform you of this, and another answer sheet will be sent to you free of charge. If you complete your exam online, your certificate will be available automatically in your account if you achieve a passing grade. GRADING OPTIONS Please choose only ONE of the following: GRADING OPTIONS: Please choose only ONE of the following. There is no additional charge for any of these grading options. Make sure to fill out your answer sheet completely prior to submitting it. ONLINE GRADING Visit our website at Login to your account (if you are a first-time user, you must set up a new user account). Click on My CPE in the left-hand navigation menu pane, then choose My CPE in Progress, and then click on Exam Grading. If your exam is not already located here, click on Add Exam Ordered by Phone, Fax, Mail, or Another Person and follow the instructions. MAIL Your exam will be graded and your certificate of completion mailed to you the same day we receive it. Your certificate will be dated according to the postmark date; therefore, you do not need to overnight your exam. Please mail your answer sheet to: Professional Education Services, LP 4208 Douglas Blvd., Ste 50 Granite Bay, CA FAX Your exam will be graded and you will be contacted either via phone or fax with your results within 4 business hours of receipt. A copy of your graded exam and certificate of completion will be mailed to you the same day we receive it. Your certificate will be dated according to the fax date. If you choose to fax your exam, please do not mail it. Your fax will serve as the original. Please refer to the attached answer sheet for further instructions on fax grading. Fax number (916) THANK YOU FOR USING PROFESSIONAL EDUCATION SERVICES. WE APPRECIATE YOUR BUSINESS!! 7325A Final Exam 3

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7 EMPLOYER S TAX GUIDE TO FRINGE BENEFITS (COURSE #7325A) FINAL EXAM The following questions are multiple choice. Please indicate your choice on the enclosed Answer Sheet. 1. All of the following are qualified benefits of a cafeteria plan except: A. dependent care assistance B. group-term life insurance C. de minimis benefits D. health savings accounts 2. Which of the following is the contribution limit for health FSA plans beginning after December 31, 2015: A. $1,500 B. $2,000 C. $2,500 D. $2, Which of the following is the appropriate accident and health benefit treatment for a 2% shareholder of an S corporation: A. treat them as an employee B. treat them as an independent contractor C. they cannot receive accident and health benefits D. treat them as a partner in a partnership 4. Which of the following is a potential proper treatment for an achievement award given to an employee that exceeds the deductible business expense limit: A. include the cost that exceeds the allowable deduction in the employee s wages B. if an achievement award exceeds the deductible limit the entire award cannot be deducted at all C. the cost that is more than the allowable deduction is carried over into next year D. only 25% of the achievement award can be deducted 5. What is the maximum exclusion allowed from gross income for individuals receiving dependent care assistance: A. $2,500 B. $5,000 C. $7,500 D. $10, Which of the following is used to report the value of dependent care assistance provided to an employee: A. Form W-2 B. Form I-9 C. Form 941 D. Form All of the following meet the noncompensatory business services rule for cell phones except: A. the cell phone is used for contact at all times for work-related emergencies B. a requirement that the employee is available to speak with clients at times when the employee is out of the office C. there is a need to speak with clients located in other time zones and outside the employee s normal workday D. it is provided to promote goodwill and boost morale for the employee 8. Generally, life insurance must be provided to at least which of the following in order to qualify as group-term life insurance: A. 5 full-time employees B. 10 full-time employees C. 5 full-time and 5 part-time employees D. 10 part-time employees 7325A Final Exam 5

8 9. Jerry receives $250,000 of group-term life insurance coverage. Jerry is 50 years old, is not a key employee, and he pays $100 per year toward the cost of the insurance. Using Table 2-2, which of the following is the amount that his employer must include on Jerry s W-2: A. $46 B. $200 C. $452 D. $ For an employer to treat all meals provided to employees on the business premises as furnished for the employer s convenience, what percentage of employees must be furnished meals for the employer s convenience: A. greater than 25% B. greater than 50% C. greater than 75% D. greater than 85% 11. In 2016, which of the following is the allowable exclusion amount for combined commuter highway vehicle transportation and transit passes: A. $130 per month B. $250 per month C. $255 per month D. $260 per month 13. Which of the following is the standard mileage rate for the 2016 cents-per-mile rule: A cents B cents C cents D cents 14. For 2016, all of the following are considered control employees of a nongovernment employer except: A. an elected officer whose pay is $155,000 B. a director C. an employee whose pay is $189,000 D. an employee who owns 4% of equity interest in the business 15. For an employee that earns more than $200,000 in wages in a calendar year, which of the following is the Additional Medicare Tax rate: A. 0.9% B. 1.45% C. 4.85% D. 6.0% Congratulations you ve completed the exam! 12. Which of the following is the general valuation rule of a fringe benefit: A. fair market value B. historical cost C. replacement value D. book value A Final Exam

9 EMPLOYER S TAX GUIDE TO FRINGE BENEFITS #7325A (3 CPE HOURS) ANSWER SHEET (7/16) IMPORTANT NOTE: For certification, this answer sheet must be completed and submitted to PES for grading within ONE YEAR from the date of purchase. Please use BLACK INK and PRINT for quicker processing thank you. Full Name (as it appears on your license) Address ( Home Work ) City State Zip Daytime Phone ( ) License Number State Exp Date: / Are you a: CPA CFP EA (check all that apply) PTIN Number (if applicable) If course was ordered by another party, please indicate their name here: GRADING OPTIONS Please choose only ONE of the following: ONLINE GRADING Visit our website at Login to your account (if you are a first-time user, you must set up a new user account). Click MY CPE, and then choose My CPE in Progress and click on Exam Grading. (If your exam is not already located here, click Add Exam Ordered by Phone, Fax, Mail, or Another Person and follow the instructions. Mail Mail your exam to: PES, 4208 Douglas Blvd., Ste 50, Granite Bay, CA Fax Fax your exam to (916) and choose one of the following options: mail my results only or fax ( ) phone my results to: ( ) PLEASE INDICATE YOUR ANSWER BY FILLING IN THE APPROPRIATE CIRCLE Please complete the attached course evaluation - your opinion is extremely valuable! 7325A Final Exam 7

10 EMPLOYER S TAX GUIDE TO FRINGE BENEFITS #7325A COURSE EVALUATION Rate on a scale of 1-10 with 1 being poor and 10 being excellent. 1. The course met the course objectives described in the promotional material. 2. The course was up to date, held my interest, was timely, and effective. 3. The course materials were understandable, valuable, and suitable for a correspondence course. 4. The amount of advance knowledge and stated prerequisites were appropriate. 5. The completion time was appropriate for the number of credits allowed. 6. The course met my professional education needs. Please answer the following questions mark/rate any and all that may apply 1. How would you rate PES s order desk customer service 2. What can PES do to keep you as a valued customer? 3. Any other comments regarding this course or our company would be appreciated. 4. What other courses/subjects would you like to see PES offer in the future? PLEASE MAIL YOUR EVALUATION TO: Professional Education Services, LP 4208 Douglas Blvd., Ste 50 Granite Bay, CA A Final Exam

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