Answer the following statements true (T) or false (F)
1. The value of health, accident, and disability insurance premiums paid by an employer are generally not included in an employee's gross income.
2. Mattie has group term life insurance coverage of $120,000 provided by her employer on a nondiscriminatory basis. She must include premiums for $120,000 of coverage in gross income, determined by using IRS tables.
3. "Working condition fringe benefits," such as memberships in professional organizations paid for by the employer, are generally excluded from the employee's gross income.
4. Nondiscrimination requirements do not apply to working condition fringe benefits.
5. The exclusion for employee discounts on services is limited to 30% of the price charged regular customers.
1. TRUE
A statutory exclusion applies to the value of health, accident, and disability insurance premiums paid by an employer.
2. FALSE
She will have income imputed for the portion of the coverage in excess of $50,000.
3. TRUE
Working condition fringe benefits are one of the Sec. 132 exclusions.
4. TRUE
Discrimination is allowed for certain Sec. 132 benefits, including working condition and qualified transportation fringes.
5. FALSE
The discount on services is limited to 20%.
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