If a Fringe Benefit Involves a Deduction from Employee Pay,which

question 8

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 employee must enroll in direct deposit for their pay.
• C)The fringe benefit must be subject to income tax.
• D)The amount of the deduction must be listed on the employee's pay advice.

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Definitions:

Producer Surplus

The difference between the amount sellers are willing to accept for a good or service and the actual amount they receive in the market.

Producing

The act of creating, manufacturing, or generating goods and services that can be offered in a market.

Sells

Engages in the act of offering goods or services in exchange for money or other compensation; a rephrased definition of 'Sellers.'

Highest Amount

The maximum quantity or degree of something that is recorded, attained, or allowed.