External 401(k)
This type of IRA offers tax-deductible contributions but taxes withdrawals in retirement, while its counterpart taxes contributions up front but makes qualified withdrawals tax-free.
What are Traditional and Roth IRAs?
This type of employer-provided benefit pays out a designated coverage amount to beneficiaries in the event of the employee's passing.
What is life insurance?
This is the IRS limit for Group Term Life coverage before it becomes taxable income.
What is $50,000?
This type of taxable income is generated from fringe benefits like health insurance for S-Corp shareholders or employee discounts that must be reported on an employee’s W-2.
What is imputed pay?
What is the first step for transferring a group’s benefits to Gusto?
What is assigning Gusto as the Broker of Record (BOR)?
If your company offers this type of retirement plan through an external provider, employee deductions and employer contributions must remain in the company’s bank account for transfer to the provider.
What is an external 401(k)?
Life insurance coverage amounts up to this value are not taxed unless the employee is a 2% shareholder.
What is $50,000?
An admin might use this option to manually enter taxable income if the system’s calculation is not accurate.
What is the "Custom Settings" option?
This tax form might require amendments if fringe benefits are incorrectly set up, leading to misreported employee wages.
What is a W-2?
What is the purpose of a Broker of Record (BOR) letter?
What is to reassign a new broker to manage the group’s benefits?
This type of tax is still applied to 401(k) contributions, even though the contributions themselves reduce taxable income for the year.
What is FICA (Social Security and Medicare)?
The additional taxable income generated by life insurance coverage exceeding $50,000 is known as this.
What is imputed income?
The process by which the employer manually enters the taxable income amounts for employees using external Group Term Life benefits.
What is the custom settings setup?
These individuals who own more than 2% of an S-Corp must have their health insurance premiums added to their taxable income.
Who are 2% shareholders?
What are the two main stages of the BOR transfer process?
What are the BOR Opportunity stage and the BOR Benefit Order stage?
This type of retirement plan for small businesses uses calendar-year compensation to calculate employer-matching contributions, potentially leading to catch-up contributions after employee deductions stop.
What is a Simple IRA?
These two structures are commonly used for life insurance plans, one offering a fixed coverage amount and the other calculating coverage based on employee earnings.
Must answer with both structures.
What are flat and salary-based plans?
When calculating imputed pay, this is the formula to determine the amount reflected in each semi-monthly paycheck.
What is dividing the monthly taxable amount by two?
When an employer provides a fringe benefit as taxable compensation, this section of the pay stub reflects the value of the benefit as part of the employee's gross income.
What is the imputed pay section?
What is the best way to check the status of a group’s BOR transfer in Salesforce?
What is searching for the “Benefits BOR” in the Opportunities column and checking for updates from the BOR Sales owner?
When an employee joins a retirement plan mid-year, these additional contributions may be applied to upcoming payrolls to ensure compliance with annual contribution limits.
What are catch-up contributions?
This IRS publication is referenced to calculate the monthly cost per $1,000 of coverage based on the employee's age to calculate imputed income for life insurance.
What is Publication 15-B?
These three taxes apply to Group Term Life benefits over the $50,000 limit or for 2% shareholders.
Must name all three for full points.
What are FICA, FUTA, and SIT?
Employers should set up this alongside the taxable benefit, reflecting the reimbursement on the employee’s pay stub, to ensure proper reimbursement for a taxable fringe benefit.
What is a recurring reimbursement?
What might happen if an admin doesn’t flag discrepancies during the benefits transfer process?
What are incorrect deductions, incorrect plan options for enrollment, or incorrect contributions?