What is the purpose of employee benefits in payroll?
Employee benefits provide additional compensation and support beyond salary, improving employee satisfaction and retention.
Which of the following is an example of a non-taxable fringe benefit?
Non-taxable fringe benefits are perks that are not subject to taxation by the IRS.
What is the maximum limit for contributions to a 401(k) plan in 2025?
The IRS sets annual limits for 401(k) contributions to ensure that individuals do not excessively benefit from tax-deferred savings.
What is the definition of taxable compensation in payroll?
Taxable compensation includes wages, salaries, bonuses, and other forms of payment that are subject to tax withholding.
Which of the following benefits must be offered to employees under the Affordable Care Act (ACA)?
The ACA requires certain benefits, including health insurance, to be offered to full-time employees to ensure healthcare access.
Which of the following is true about employee stock options?
Employee stock options are a benefit where employees have the option to buy company stock at a discounted price.
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What is the key feature of a defined benefit pension plan?
A defined benefit plan provides a specific retirement benefit amount, typically based on years of service and salary history.
What is the main advantage of offering employee benefits?
Employee benefits help attract and retain talent, offering workers more comprehensive compensation beyond salary.
Which of the following benefits are typically offered under a cafeteria plan?
Cafeteria plans allow employees to choose from a variety of benefits, such as health insurance, life insurance, or dependent care assistance.