Understanding Fringe Benefits in Employment

Play an AI-generated podcast conversation about this lesson

Which of the following is considered a taxable fringe benefit?

Membership fees paid by the employee for a social club

Contributions made by the employer to the employee's retirement plan

Christmas bonus given to all employees

A household maid provided by the employer (correct)

What is the tax rate for taxable fringe benefits received by a managerial or supervisorial employee who is a resident citizen?

Subject to the 90,000 limit

20% - 35% (graduated rates)

25% final tax

35% final tax (correct)

Which of the following is considered a non-taxable fringe benefit?

Fringe benefits authorized and exempted from tax under special laws (correct)

A vehicle of any kind provided by the employer

Educational assistance provided by the employer for the employee's dependents

Interest on a loan provided by the employer at a lower rate than the market rate

For rank-and-file employees, what is the tax treatment of fringe benefits that exceed the $90,000 limit?

The excess is subject to the normal graduated tax rates ranging from 20% - 35% Signup and view all the answers

What is the monetary value of a cash fringe benefit?

The face amount or value received Signup and view all the answers

Which of the following is considered a taxable fringe benefit for a non-resident alien not engaged in trade or business?

Holiday and vacation expenses paid by the employer Signup and view all the answers

What is the primary purpose of distinguishing between a rank-and-file employee and a managerial or supervisorial employee?

To determine their tax treatment for fringe benefits Signup and view all the answers

According to the given information, which of the following statements about managerial employees is true?

They have the authority to lay down management policies Signup and view all the answers

Which of the following characteristics best describes a rank-and-file employee?

Their work is routinary and clerical in nature Signup and view all the answers

Based on the information provided, which of the following statements is true about supervisory employees?

They can effectively recommend managerial actions using independent judgment Signup and view all the answers

What is the primary characteristic that distinguishes a fringe benefit from regular salary?

Fringe benefits are provided in addition to basic salary Signup and view all the answers

According to the information provided, which of the following statements is true about managerial and supervisorial employees?

They are taxed differently than rank-and-file employees for fringe benefits Signup and view all the answers

Understanding Fringe Benefits in Employment

Podcast Beta

Questions and Answers

Which of the following is considered a taxable fringe benefit?

What is the tax rate for taxable fringe benefits received by a managerial or supervisorial employee who is a resident citizen?

Which of the following is considered a non-taxable fringe benefit?

For rank-and-file employees, what is the tax treatment of fringe benefits that exceed the $90,000 limit?

What is the monetary value of a cash fringe benefit?

Which of the following is considered a taxable fringe benefit for a non-resident alien not engaged in trade or business?

What is the primary purpose of distinguishing between a rank-and-file employee and a managerial or supervisorial employee?

According to the given information, which of the following statements about managerial employees is true?

Which of the following characteristics best describes a rank-and-file employee?

Based on the information provided, which of the following statements is true about supervisory employees?

What is the primary characteristic that distinguishes a fringe benefit from regular salary?

According to the information provided, which of the following statements is true about managerial and supervisorial employees?

More Like This

Taxable Fringe Benefits for Rank and File Employees

Fringe Benefits Taxation

Fringe Benefits in Compensation

Fringe Benefits Overview

Upgrade to continue