Author: Anonymous

If education maintains or improves a skill required by an individual’s employer, the individual can take a tax deduction for which of the following?

If an employer purchases a relocated employee’s old home to prevent the employee from getting below market price due to a forced sale, the amount above fair market value that the employee receives can be deemed additional compensation.

Ava Evergreen owns and operates a large greenhouse and floral shop called Every Bloomin’ Thing as a sole proprietorship. Ava employs 110 full-time workers besides herself. A SIMPLE IRA plan would allow Ava to make contributions to IRAs for her employees.

If a state does not establish an exchange individuals and small employers must buy health insurance directly from insurance companies.

The owner of Pinnacle Management Services, Inc., wants to provide health benefits for the executive staff that are over and above the benefits provided for the rank-and-file employees. The best way of doing this is for Pinnacle to utililize

Which of the following defined benefit plan distribution options is usually the automatic form of benefit for an unmarried plan participant?

The owner of Sierra Sporting Goods encourages her employees to stay healthy. An employee benefit is an annual membership to the local athletic club. Every year, the store sponsors a mini-triathlon for area sports enthusiasts and awards a $100 bonus to each employee who participates and finishes the mini-triathlon and a $250 bonus to any employee who places in the top three on any race in the mini-triathlon. The health care management tool(s) that Sierra’s owner is using is (are)

In order for a publicly held company to receive an income tax deduction for executive compensation, what is the maximum allowable amount of cash compensation paid to a CEO?

Universal life insurance cannot be used to provide an insured death benefit under a qualified plan.

Zeta Corporation is using life insurance to provide a $200,000 death benefit to the beneficiary or estate of T. A. Gordon, a key executive. Zeta Corp. expects to be in a 34% tax bracket when the benefit is paid, so a $132,000 policy has been purchased on Gordon’s life. Zeta Corp. is the owner and beneficiary of the policy and pays the premiums. When Gordon dies, which of the following is true?