FPC Exam - Fringe Benefits and Other
Payments
Qualified EE discount - Answer-a nontaxable benefit when the ER sells a product or service to an EE at a
discount. The discount is limited based on type of product or service sold
de minimus fringe benefit - Answer-A benefit of small value, difficult to track, and occasionally provided
that is excluded from the EE's income. generally cannot be cash
taxable benefit formula - Answer-the fair market value less amounts excluded by law less any amounts
paid for the benefit with after tax dollars
Commuting valuation rate - Answer-For personal use of company vehicles is $1.50 per trip or $3.00 per
day
GTL taxes - Answer-SS and medi are withheld
working condition benefit - Answer-Nontaxable benefit which relates to the EE's trade or business
provided to an EE
monthly transportation benefit - Answer-Maximum exclusion from income for a ___ is $260/month
Payments
Qualified EE discount - Answer-a nontaxable benefit when the ER sells a product or service to an EE at a
discount. The discount is limited based on type of product or service sold
de minimus fringe benefit - Answer-A benefit of small value, difficult to track, and occasionally provided
that is excluded from the EE's income. generally cannot be cash
taxable benefit formula - Answer-the fair market value less amounts excluded by law less any amounts
paid for the benefit with after tax dollars
Commuting valuation rate - Answer-For personal use of company vehicles is $1.50 per trip or $3.00 per
day
GTL taxes - Answer-SS and medi are withheld
working condition benefit - Answer-Nontaxable benefit which relates to the EE's trade or business
provided to an EE
monthly transportation benefit - Answer-Maximum exclusion from income for a ___ is $260/month
