Match Each Statement with the Correct Term Below

question 43

Multiple Choice

Match each statement with the correct term below.
-De minimus fringe

• A)An employee may exclude up to $5,000 annually of these employer-provided services.
• B)If cash is received under this program, taxpayers are taxed on the amount of cash received.
• C)A salary reduction plan that allows employees to pay for medical and child care costs with before-tax dollars.
• D)A transfer of property without any profit motivation with an intention that includes affection, charity, and respect.
• E)Payments made into an employee's account are not taxable in the current period; taxation is deferred until funds are withdrawn.
• F)Employer provided benefit that may be excluded from income because the dollar amounts are too small for a reasonable accounting.

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Definitions:

Oil Exploration

The process of searching for oil deposits, often involving geological surveys and drilling.

Restrictive Covenant

A clause in a deed or lease that limits what the owner of the property can do with it, often to ensure the use aligns with certain criteria or standards.

Employment

The relationship between an employer and an employee where the employee performs work under certain conditions in exchange for remuneration.

Enforced

refers to the act of compelling compliance or obedience to a law, rule, or obligation.