Which of the following forms is filled out by an employee, who is a citizen, at the beginning of an employment relationship?
Form W-4.
Which of the following items is not included on an employee's Form W-2?
Value of stock options granted during the year
Which of the following statements regarding compensation is false?
Bonuses PAID WITH 2� MONTHS of year end are included in employee's compensation in the year they were earned.
Which of the following statements regarding income tax withholding is incorrect?
LARGE ITEMIZED DEDUCTIONS require the need for additional withholding.
Which of the following isn't done by Form W-2?
INDICATES WHETHER AN EMPLOYEE had more than one employer during the year.
Which of the items is not correct regarding withholding?
Employees CANNOT claim an allowance for a child unless they are entitled to claim the child as a dependent.
Which of the following regarding the Form W-4 is incorrect?
The form can only be adjusted at the beginning of year or start of employment.
Which of the following statements is true regarding excess Social Security contributions by an employer?
Excess contributions are treated as VOLUNTARY CONTRIBUTIONS TO THE TREASURY.
When a CEOs salary exceeds $1,000,000, the employee _____ taxed on the entire amount, and the employer ______ allowed a deduction on the entire amount.
IS, IS NOT
Which of the following is not a purpose of equity-based compensation?
Provides a LOW OR NO COST form of compensation.
Which of the following is true regarding stock options?
There is TYPICALLY NO TAX EFFECT on the grant date.
Which of the following refers to the date stock options are awarded to an employee?
GRANT date.
How is the bargain element for a stock option calculated?
The difference between the MARKET price on the EXERCISE date and the STRIKE price.
Which of the following pairs of items is not needed to calculate the after-tax proceeds for a same-day sale?
Strike price and market price on GRANT date.
Which of the following statements regarding restricted stock is false?
Like NONQUALIFIED stock options, the employee's income inclusion for restricted stock is the bargain element.
Which of the following is false regarding a section 83(b) election?
If an EMPLOYEE LEAVES BEFORE THE VESTING DATE any loss is limited to $3,000.
Which of the following is NOT an example of a taxable fringe benefit?
$200 of monthly employer provided parking.
Which of the following is NOT an example of a NONtaxable fringe benefit?
Group-term life insurance policy providing $100,000 of coverage.
Which of the following does NOT qualify as a "for the convenience of the employer" nontaxable fringe benefit?
A company picnic.
Which of the following statements regarding employer provided educational benefits is true?
Up to $5,250 in tuition benefits can be excluded.
Which of the following benefits cannot be excluded as a no additional cost service fringe benefit?
Free tax return preparation from a client.
Which of the following is not a requirement of a "qualified employee discount"?
The discount can be ELECTED UP TO FIVE TIMES ANNUALLY.
Which of the following is false regarding dependent care expenses?
Employers may discriminate among employees.
Which of the following is a fringe benefit that employers can discriminate among employees?
Qualified TRANSPORTATION FRINGE.