Exam (elaborations)
FPC Chapter 4 (1)
Exam of 5 pages for the course Imse 250 at Imse 250 (FPC Chapter 4 (1))
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FPC Chapter 4Fringe Benefit - ANS-Extra benefit supplementing EE pay
Taxable Compensation - ANS-Back Pay
Bonuses
Commissions
C. Vehicle (Personal)
Severance Pay/Vacay
ER transit > $255/mo
ER parking > $255. mo
Fringe Benefits
Gift, Certificates, Prizes/Awards
Group legal services
Group-term life > 50K
Noncash fringes
Nonqualified moving $
OT
Regular wages
Sick pay
TIps
Nontaxable Compensation - ANS-Child care </5K under 129
C. Vehicle (business)
De minimis fringes
Disability (ee contribution)
Educational assist. for job courses
Group life < 50K
Medical/dental (er contribution)
No-additional-cost fringes
Qualified ee discounts on er goods/services
Qualified moving expenses
Qualified transportation
Reimbursed business expenses
Working condition fringes
Non-job-related education assist. up to 5250
Long-term care insurance
HSA
Gross Income - ANS-Includes everything from the ER in payment for services for the ER. Not
limited to wages. Includes fringe benefits
, Fair Market Value of Noncashe Compensation - ANS-Amount an EE would have paid a 3rd
party to buy or lease the fringe benefit.
1. The EEs perceived value of the benefit bis not relevant.
2. The amount the ER paid for the benefit is not a determining factor
Imputed Income - ANS-Value of taxable benefits EEs receive from the ER and must be included
in the EEs income.
ER required to impute income to EEs for each taxable noncash benefit. Reduces EEs net pay
by increasing taxes.
De Minimis Fringe Benefits - ANS-Fringe beneftis so small in value that it is unreasonable or
administratively impractical for the ER to account for them.
-Use of company cell phone for personal calls
-Occasional use of EEs property ( as long as it is less than 15% of total use)
No-Additional-Cost Services - ANS-EEs can take advantage of ER services tax free when
services are sold to customers as part of regular business. As long as ER incurs no substantial
cost. Equal terms to all EEs
Qualified EE Discounts - ANS-Do not include in EEs taxable income if property/services:
- Discount on property is not > gross profit earned on the property at the price normally sold to
customers
- The discount on services is not > 20% of the retail price
Working Condition Fringes - ANS-Work related items, when paid for by the EE, can be deducted
from the EEs tax return as biz expense.
Nontaxable Compensation:
-Biz use of car/plane
-Subscript to biz mags
- Fees to join pro organizations
-Goods used by EE for product testing
- Cell phone provided for business
Use of Athletic Facilities - ANS-Excluded from income. Must be located on ER premises. Must
be operated by ER
Qualified Transportation Fringe Benefits - ANS-ER provided qualified transportation fringe
benefits may be excluded from the income if .....
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