FPC Practice questions with complete solutions 100% guaranteed success.

FPC Practice questions with complete solutions 100% guaranteed success. cafeteria plan are authorized by what Internal Revenue Code Section? A. 125 B. 401k C. 403b D. 457b - correct answers.a. 125 all of the following are tax implications of a cafeteria plan except: a. no income tax withholding b. no social security and medicare tax withholding c. must withhold income, social security, and medicare taxes d. no form W2 reporting - correct answers.C. must withhold income, social security, and medicare taxes One of the options in an employee's cafeteria benefit plan is a dependent care flexible spending account. He earmarked $100 per month to the account to pay for child care but spend only $1000 by the end of the plans grace period. at the end of the grace period, what happens to the $200 left in the account? a. the amount is forfeited b. it will be added to his taxable income c. he can use it to "buy" ab additional benefit d. it ill carry over to the next year - correct answers.A. the amount is forfeited Prior to beginning work for a company, a chemical engineer signed a contract stating that she agreed to work as an independent contractor. she performs all her duties in the companys laboratories, works under the companys direction, and maintains regular office hours. what is her status? a. independent contractor under common law b. independent contractor under reasonable basis test c. employee - correct answers.C. employee do not assume that the employer has fulfilled its responsibilities and is free from penalty simply by having a worker sign a contract stating he is a 1099. individuals do not have a right to waive their ee status in a contract. A retired safety inspector for the company was rehired as a consultant when the company expanded its plant operations. the retired employee was a natural choice. the tasks he undertook as a consultant were the same as the ones he performed before retirement. paid monthly, he has agreed to work under the direction of his old boss until the new plant facilitates are fully operational? What is his status? a. independent contractor under common law b. independent contractor under reasonable basis test c. employee - correct answers.C. employee consultants are generally treated as independent contractors. however, when an ex ee is performing the same or similar job as before retirement, it is unlikely that he qualified as a 1099 after termination a receptionist has agreed to work afternoons at the company until the company can find a full time replacement. what is the receptionists status? a. independent contractor under common law b. independent contractor under reasonable basis c. employee - correct answers.C. employee whether or not an ee is full time or part time or works a few weeks or a lifetime for the company is not relevant her. she is an employee. All of the following types of employees are classified as exempt from the FLSAs min wage and OT requirements except: a. professional b. outside salesperson c. administrative d. computer repairman - correct answers.D. computer repairman a computer repairman does not perform the duties required to qualify as an exempt computer professional a waitress is paid $2.25 per hour and she receives $225 in tips during the week. She works 4o hours per week. Which of the following is true? a. her employer is allowed to reduce her cash wage to no less than $2.13 per hour b. her base pay must be increase to $4.5 per hour after a 90 day training period.