In the Calculation of Gross Income, Which of the Following

question 30

Multiple Choice

In the calculation of gross income, which of the following is not an example of nontaxable employee benefits?

• A)Purchase discounts for all employees equal to the employer's gross profit percentage
• B)Group-term life insurance for $100,000 of coverage
• C)Parking provided in the company garage
• D)Supper money for voluntarily working overtime

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Definitions:

Employer Contributions

Payments made by an employer into a benefits plan, pension, or savings account on behalf of their employees.

At-Will Doctrine

Essentially means an employee hired for an indefinite period may be discharged for any or no reason, cause or no cause, unless specifically prohibited by law.

HR Policy

Guidelines and rules set by a company to manage its workforce and to regulate aspects such as recruitment, compensation, and employee relations.

Just Cause Contract

An employment agreement which specifies that an employee can only be terminated for specified, justifiable reasons.