Roma Company Pays for Group Term Life Insurance on a Non-

question 1617

Multiple Choice

Roma Company pays for group term life insurance on a non- discriminatory basis for all 100 of its workers. Which of the following individuals, all of whom work in the business, will be allowed to exclude the value of the coverage from her gross income?

• A) Jamila is president and 51% shareholder of Roma Company which is a C corporation.
• B) Fran is a managing partner of Roma partnership; she owns 5% of the business.
• C) Sally is a department manager and owns 3% of Roma, an S corporation.
• D) Tabitha is sole owner of Roma, a sole proprietorship.

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Definitions:

Bank Draws

Withdrawals or loans taken from a line of credit or banking account, often utilized to manage cash flow or finance operations.

Forged Checks

Checks that have been illegally altered or created to defraud and deceive, often involving signature forgery.

Non-Manual Signatures

Signatures that do not involve a handwritten mark, including electronic signatures and other forms of verification.

Contractually Shift

Refers to the process of moving responsibilities, rights, or liabilities from one party to another through the terms of a contract.