1. Group Term Life: Sid Born March 25, 1953 Age 55 – 59: $.43 per $1,000 of excess coverage per month Annual Salary = $80,000 Employer provided life insurance coverage = $40,000 Taxable Income = ?

2. Group Term Life: Sam Born March 25, 1953 Age 55 – 59: $.43 per $1,000 of excess coverage per month Annual Salary = $80,000 Employer provided life insurance coverage = 2 x Annual Taxable Income Per Month = ? Taxable Income reported on W-2 = ? Reported in W-2 Box _?_ Using Code _?_

3. Personal Use of Auto: Annual Lease Valuation Total miles = 25,000 Business miles = 20,000 Personal miles = 5,000 Annual Lease Value from table = $8,250 Employer provides fuel Taxable amount included on W-2 = ? Additional amount for Employer provided fuel = ? Reported in Boxes ___, ___, ___ on W-2

4. An employer provides educational assistance to its employees through a qualified educational assistance program. Employees are reimbursed for tuition costs after successfully completing their course work. A member of the payroll staff has enrolled in extension courses to complete her undergraduate degree in accounting. Based upon the following reimbursement information, calculate the amount of income that is subject to withholding and must be reported on the employee's Form W-2 for 2014. If no income should be reported, enter 0. Tuition Date Reimbursed Class 1 $1,500.00 04/15/2014 Class 2 $2,800.00 07/31/2014 Class 3 $1,350.00 11/30/2014 Taxable income =

5. Stormy Inc. rewards its employees with awards for length of service. The award program is described in Stormy Inc.'s Employee Handbook and does not discriminate in favor of highly compensated employees. A member of the payroll team has been employed by Stormy Inc. for 10 years and during 2014 received his first award, a gold watch valued at $475.00. Calculate the amount of the award that will be included in the employee's income. If the award is not taxable, enter 0. Taxable Amount of Award =

6. An employee is injured in a non-job-related accident. Her employer has a short-term disability plan to which employees contribute through an after-tax payroll deduction. Over the past three years, the company contributed $28,000.00 in premiums to the policy. Total premiums for the same period are $80,000.00. The injured employee is paid biweekly and receives $1,200.00 in disability pay each pay period. Calculate the amount of disability pay that is subject to federal income tax. Taxable income =

7. During the holiday season, Stormy Inc. provides all employees gift cards with a face value of $25.00 that can only be used in selected grocery stores for purchases of non-alcohol and non- tobacco products. Determine the value of the gift card that must be included in all of Stormy Inc.'s employees' income. If the gift card is not taxable, enter 0. Value of gift card to include in income =

8. As the result of a non-job-related injury on February 15, 2014, an employee receives $1,100.00 per week in sick leave benefits for which the employer has paid the entire premium. Assume that the employee has not reached the social security wage base. Calculate the social security tax withholding on the sick leave payment for July 15, 2014. If no tax applies, enter 0. Social security tax =