Payroll Accounting NEW
CHAP- FOUR EXAM
2024/25
WW 2 - ANSWERS-what event sparked Income Tax withholdings?
Rumal Plan - ANSWERS-What is the pay as you go method?
fair market value - ANSWERS-what are non cash payments made to employees taxed based on?
flexible reporting - ANSWERS-this allows employers to report fringe benefits however they
want, as long as they are reported by Dec 31
special period rule - ANSWERS-under this condition, fringe reporting cut off date can be set at
Oct 31
flat 25 - ANSWERS-employers may add the value of fringe benefits onto regular pay or they may
use this method to tax them:
de minimis fringe benefit - ANSWERS-any property or service with a value so small that
accounting for it would be unreasonablew or impractical.
, 401 (k) - ANSWERS-this is a pretax retirement plan.
roth IRA - ANSWERS-this is a after tax retirement plan that allows tax payers and their spouses
to make annual nondeductible contributions of up to 5K
accountable plans - ANSWERS-If all these qualifications are met, then what type of plan is it?
1. business connected
2. adequate accounting within reasonable time period
3. employee return of excess of substantiated amounts
flexible spending account - ANSWERS-this is money deducted from paycheck to cover out-of-
pocket medical expenses, any unused monies will be forfeited.
Archer medical savings account - ANSWERS-this is used by small businesses with high deductible
insurance. employees have complete control over the money and any unused portion will
rollover to the next year.
simple plan - ANSWERS-this is a retirement plan for small businesses (less than 100 employees)
in which a certain % of wages are withheld
Section 403(b) - ANSWERS-this is a retirement plan for employees of tax exempt organizations
section 457 - ANSWERS-this is a retirement plan for employees of state and local governements
and of tax-exempt organizations other than churches.
ERISA - ANSWERS-if the conditions are met what is the employer not subject to?
CHAP- FOUR EXAM
2024/25
WW 2 - ANSWERS-what event sparked Income Tax withholdings?
Rumal Plan - ANSWERS-What is the pay as you go method?
fair market value - ANSWERS-what are non cash payments made to employees taxed based on?
flexible reporting - ANSWERS-this allows employers to report fringe benefits however they
want, as long as they are reported by Dec 31
special period rule - ANSWERS-under this condition, fringe reporting cut off date can be set at
Oct 31
flat 25 - ANSWERS-employers may add the value of fringe benefits onto regular pay or they may
use this method to tax them:
de minimis fringe benefit - ANSWERS-any property or service with a value so small that
accounting for it would be unreasonablew or impractical.
, 401 (k) - ANSWERS-this is a pretax retirement plan.
roth IRA - ANSWERS-this is a after tax retirement plan that allows tax payers and their spouses
to make annual nondeductible contributions of up to 5K
accountable plans - ANSWERS-If all these qualifications are met, then what type of plan is it?
1. business connected
2. adequate accounting within reasonable time period
3. employee return of excess of substantiated amounts
flexible spending account - ANSWERS-this is money deducted from paycheck to cover out-of-
pocket medical expenses, any unused monies will be forfeited.
Archer medical savings account - ANSWERS-this is used by small businesses with high deductible
insurance. employees have complete control over the money and any unused portion will
rollover to the next year.
simple plan - ANSWERS-this is a retirement plan for small businesses (less than 100 employees)
in which a certain % of wages are withheld
Section 403(b) - ANSWERS-this is a retirement plan for employees of tax exempt organizations
section 457 - ANSWERS-this is a retirement plan for employees of state and local governements
and of tax-exempt organizations other than churches.
ERISA - ANSWERS-if the conditions are met what is the employer not subject to?
