Blog

The Enchanted Garden, a floral shop, has 20 employees. Of these, four are under age 25- two were new hires six months ago. Average age of the remaining employees is 34, with an average tenure of 4 years. In addition, during May through June, usually two temporary workers are hired to cover demand for Mother’s Day and the peak wedding season. The Enchanted Garden has a Health Reimbursement Arrangement (HRA). Under the coverage tests for an HRA, the minimum number of employees that The Enchanted Garden can cover is

To establish a Health Reimbursement Arrangement, a company must adopt a plan by corporate resolution that specifies

An employee stock purchase plan gives employees an interest in the financial success of the business.

The Enchanted Garden, a floral shop, has 20 employees. Of these, four are under age 25- two were new hires six months ago. Average age of the remaining employees is 34, with an average tenure of 4 years. In addition, during May through June, usually two temporary workers are hired to cover demand for Mother’s Day and the peak wedding season. The Enchanted Garden has a Health Reimbursement Arrangement (HRA). Under the coverage tests for an HRA, the minimum number of employees that The Enchanted Garden can cover is

Devon McArdy, a highly paid executive, was covered under his company’s Health Reimbursement Arrangement when he was hired. The rank-and-file employees, however, have to wait for 3 years before being covered. This year, Devon was reimbursed $10,000 for hospital and surgical expenses for care of a broken arm and shoulder after a skiing accident. In the same year, amounts reimbursed to all highly compensated employees through the company’s Health Reimbursement Arrangement totaled $20,000 out of a total of $100,000 of reimbursements to all employees. Devon must report $_____ as additional taxable income.

Which of the following is true regarding HSA funding?

To establish a Health Reimbursement Arrangement, a company must adopt a plan by corporate resolution that specifies

Common characteristics of a sick pay plan include

Harriet Jacobs earns $140 per day as an associate manager at Praxton Manufacturing. Praxton provides all employees with three sick days a month at full pay. Unused sick pay benefits can be accumulated to a maximum of 90 days. Harriet has accumulated 5 days of unused sick pay. Praxton also pays premiums on short-term disability insurance for all employees. The short-term disability insurance pays 80% of earnings from 10 business days after onset of illness or injury to return to work or 6 months, whichever occurs first.Last month, Harriet was in an auto accident and broke both legs and her left arm. She was unable to work for three full weeks. How much income will Harriet receive while she is unable to work?

Church and governmental qualified plans must meet special rules.