< Back to Guide
Q1.
Besides fuel, what employee expenses are covered by a car allowance?
A
Insurance and taxes
B
Maintenance, oil, and tires
C
Depreciation
D
All of the above
Q2.
Which of the following compensation plans are taxable?
A
Standard monthly car allowance
B
Fixed-and-variable-rate reimbursement (FAVR)
C
Mileage reimbursement using the IRS mileage rate
D
Car allowance with mileage substantiation
Q3.
How much unreimbursed business expenses can you write off if you receive a car allowance?
A
After multiplying by the IRS rate, whatever exceeds your allowance amount
B
Any amount that exceeds 2% of your gross adjusted income
C
None
D
All business mileage is tax deductible
Q4.
Which of the following is NOT true of the IRS mileage rate?
A
Tends to over-reimburse high mileage drivers
B
Helps control company costs effectively and equitably
C
Was an individual tax deduction tool rather than a corporate reimbursement tool
D
The 2025 is calculated at $0.70/mile
Q5.
What flaws do car allowances and mileage reimbursements share?
A
They are both always considered forms of taxable income
B
They both tend to shortchange mobile employees
C
They both apply an equal rate to unequal expenses
D
They are both likely to attract the wrong kinds of prospective employees
Show my score
press ENTER
0
% completed
70% Complete