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13 Cards in this Set

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  • Back
An employee earns $ 30,000.00 per year; and the company provides group-term life insurance of three times the employee' s salary. How much of the insurance coverage is subject to taxation?
Using the above example, if the employee is 46 years old as of December 31, 2010, what rate is used to compute the imputed monthly income for 2010?
a. $90,000 - $ 50,000 = $ 40,000

b. $ 15 per $ 1,000 of the taxable value of the coverage
What is the maximum amount of group-term life insurance an employer can provide an employee's dependents without its value being taxable to the employee?
$ 2,000. If the employer provides more than $ 2,000 in group-term life insurance to an employee's dependent, the value of the total amount including the first $ 2,000 becomes taxable to the employee. However, if the difference between the Table I value of the insurance and the amount paid by the employee in after-tax dollars is considered de minimis, then tehre is no income for the employee.
When an employee travels on business for his or her employer and receives an advance to pay business-related expenses, what are the general rules for determining when the advance is taxable to the employee and when is it not?
Taxable: When the employer has an nonaccountable plan because it does not reuqire the employee to substantiate business travel expenses and to return any amount not spent by the employee on business within a reasonable period of time.

Nontaxable: When the employer has an accountable plan and the employee is required to substantiate business travel expenses and refund the balance of the advance not used within a reasonable period of time.
When valuing vechicles, if the employer uses a special valuation method, the employee must also use the same rule or the general valuation method.
The annual lease method for valuing vehicles includes the value of employer-provided fuel.

The annual lease value does not include the value of employer-provided fuel.
When an employee uses a company uses a company aircraft for business and personal use, the cost of traveler for personal use is excluded from the employee's income.

If an employee uses a company aircraft for business and personal use, the value of the personal use is included in the employee's income.
Qualified employee discounts qualify as nontaxable fringe benefits.
The value of employer-provided group-term life insurance up to $ 50,000 is excluded from an employee's federal taxable income.
Employers are not required to withhold federal income tax on excess group-term life insurance coverage.
In order for a moving expense reimbursement to be excluded from income, the employee must work full time for the same employer vicinity of the new job location for at least 39 consecutive weeks.

During the 12-month period immediately following the move, the employee must wokr for at least 39 weeks in the general location of the new workplace. The employee does not have to work for the same employer for 39 weeks, nor do the 39 weeks have to be consecutive.
All of the following data elements are recordkeeping requirements for the business use of company-provided vehicles EXCEPT:

a. Date of the trip
b. Business purpose of the trip
c. Mileage of the trip
d. Car phone use for the trip
The business standard mileage rate for 2010 is:

a. 50 cents per mile
b. 50.5 cents per mile
c. 55 cents per mile
d. 58 cents per mile
The IRS-approved rate for employer-provided fuel for 2010 is:

a. 5 cents per mile
b. 5.5 cents per mile
c. 7.5 cents per mile
d. 9 cents per mile