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PHR Certification Practice Test
Compensation & Benefits
PHR Certification
Compensation & Benefits Practice Test
Question 1 of 3
71% Get this Question Right
The Revenue Act created:
A
flexible spending accounts
B
health savings accounts
C
401(k) plans
D
403(b) plans
The Revenue Act added sections 125 and 401(k) to the tax code. Section 125 allows employers to offer employees favorable tax treatment on health and welfare benefits and section 401(k) allows employees to make tax-favored pay deferrals toward retirement savings through payroll deductions.
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