Benefits Administration Flashcards
7 cards from real CPP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Benefits Administration flashcards as text
What is the maximum annual benefit exclusion for employer-provided dependent care assistance under IRC Section 129?
Answer: $2,500 for married filing separately
Married employees filing separately may exclude up to $2,500; married filing jointly and single filers may exclude up to $5,000.
Which form must employers use to report ACA health coverage information to the IRS for applicable large employers?
Answer: Form 1094-C and 1095-C
ALEs use Forms 1094-C (transmittal) and 1095-C (employee statement) to report employer-sponsored health coverage to the IRS.
An employee's group term life insurance coverage is $120,000. The employee is age 47. What amount is included in the employee's gross income?
Answer: The cost of coverage exceeding $50,000 using IRS Table I rates
Coverage above $50,000 results in income inclusion calculated using IRS Table I uniform premium rates based on the employee's age.
Under ERISA, what is the maximum vesting period allowed for employer contributions under a cliff vesting schedule in a qualified retirement plan?
Answer: 3 years
ERISA requires that cliff vesting for employer contributions occur no later than 3 years of service for plans subject to current vesting rules.
Which of the following is a qualifying event that triggers COBRA continuation coverage for a spouse?
Answer: Divorce or legal separation from the covered employee
Divorce or legal separation from the covered employee is a COBRA qualifying event that allows the spouse to elect continuation coverage.
What W-2 box and code is used to report the cost of employer-sponsored health coverage?
Answer: Box 12, Code DD
The aggregate cost of employer-sponsored health coverage must be reported in Box 12 using Code DD on Form W-2.
A Flexible Spending Account (FSA) grace period provision allows participants to use funds remaining at year-end for how long after the plan year ends?
Answer: 2.5 months
The FSA grace period option allows up to 2.5 months after the plan year ends to incur expenses using prior-year funds.