1. The major categories of compensation are: a. current compensation and deferred compensation b. current compensation, qualified deferred compensation and no-qualified deferred compensation c. c

1. The major categories of compensation are:

a. current compensation and deferred compensation

b. current compensation, qualified deferred compensation and no-qualified deferred compensation

c. current compensation, fringe benefits, and deferred compensation

d. current compensation and fringe benefits

2. Non-qualified deferred compensation is:

a. includable in the employee’s income and deductible by the employer

b. excludible from the employee’s income and not deductible by the employer

c. includable in the employee’s income and not deductible by the employer

d. excludible from the employee’s income and deductible

3. Qualified deferred compensation plans include the characteristic that contributions:

a. are not deductible by the employer until benefits under the plan are paid

b. earn income and accumulate tax free until benefits are paid

c. are available to plan participants as soon as they are made

d. are considered to be equivalent to dividends

4. What law attempts to address issues that have arisen because so many pension plans have had to be taken over by the Pension Benefit Guaranty Corporation?

a. American Jobs Creation Act

b. Jobs Growth and Tax Relief Reconciliation Act

c. Pension Benefit Guaranty Corporation Reorganization Act

d. Pension Protection Act

5. __________________ is provided to employees or for their benefit in the year that they perform services.

a. Fringe benefits

b. Deferred compensation

c. Current compensation

d. Constructive compensation

6. Current compensation is:

a. subject to FICA taxes but not FUTA taxes

b. subject to FUTA taxes but not FICA taxes

c. subject to both FICA and FUTA taxes

d. not subject to FICA or FUTA taxes

7. Commissions are:

a. taxed at capital gains rates

b. not taxable

c. reduced by the amount of any other compensation received from the employer and then taxed

d. taxed as current compensation

8. Awards made to employees for length of service are:

a. never taxed

b. always taxed

c. taxed only if the amount or value of the award is unreasonable

d. not taxed if the value of the award is less than $400

9. Damages received by an employee as back pay in employment discrimination litigation are:

a. taxable to the employee

b. not taxable to the employee

c. taxable to the employee but only to the extend that the amount exceeds the actually amount of damages

d. taxable to the employee only to the extent that the amount received exceeds $1,000,000

10. Compensation paid to an employee in some form other than cash is:

a. is not taxable

b. is taxable only if the employer gave the employee the choice of cash

c. is not taxable unless the employer elects to deduct the compensation

d. is taxable at the fair market value of the thing received by the employee as compensation

Leave a Comment