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

Question

Quizplus · Accepted Answer

Fringe benefits that involve deductions from employee pay must have those deductions clearly listed on the employee's pay advice for transparency and record-keeping purposes. This ensures employees are aware of the deductions and can verify their accuracy.

If a Fringe Beneﬁt Involves a Deduction from Employee Pay