If a Fringe Benefit Involves a Deduction from Employee Pay

question 46

Multiple Choice

If a fringe benefit involves a deduction from employee pay, which of the following is true?

• A)Employers may only offer the benefit to certain classes of employees.
• B)The amount of the deduction must be listed on the employee's pay advice.
• C)The fringe benefit must be subject to income tax.
• D)The employee must enroll in direct deposit for their pay.

---

Definitions:

Litigation

The process of taking legal action or conducting a lawsuit.

Litigation File

The collection of documents, evidence, and records related to a legal case or proceeding.

Maintenance

The act of keeping something in good condition through regular care and repairs.

Deposition Transcript

A written record of all spoken words and non-verbal actions during a deposition, as part of pre-trial discovery.