Deck 13: Benefits and Services

Question 1

Eric has worked full-time for a large manufacturing company for over three years.Eric and his wife have recently adopted a baby,and Eric wants to take time off from work to care for the child.Which of the following laws most likely applies to Eric's situation?

A) Pregnancy Discrimination Act
B) Family and Medical Leave Act
C) Title VII of the Civil Rights Act
D) Newborn Mother's Protection Act
E) Health Insurance Portability and Accountability Act

Answer 1

B

Question 2

Which of the following conditions must be met for an injured employee to earn workers' compensation from his or her employer?

A) The employee was injured while on the job.
B) The employee suffered the injury through no fault of his or her own.
C) The employee worked for a minimum of 1250 hours during the past twelve months.
D) The employee worked full-time for the employer for a minimum of twelve months.
E) The employee received adequate job training to understand the position's requirements.

Answer 2

A

Question 3

Which of the following benefits is required by federal or state law?

A) disability insurance
B) workers' compensation
C) personal leave
D) health insurance
E) pensions

Answer 3

B

Question 4

Which of the following provides income and medical benefits to work-related accident victims or their dependents?

A) severance pay
B) sick leave
C) family and medical leave
D) workers' compensation
E) health insurance benefits

Question 5

Which of the following terms refers to benefits for time not worked such as unemployment insurance,vacation and holiday pay,and sick pay?

A) supplemental pay benefits
B) employee assistance
C) financial incentives
D) premium benefits
E) merit pay

Question 6

Which of the following is NOT an employer cost associated with granting leave to employees under the Family and Medical Leave Act?

A) cost to recruit replacement workers
B) cost of paying temporary workers
C) cost to train replacement workers
D) pay for time not worked to employee
E) lower productivity of replacement workers

Question 7

Which of the following terms refers to a one-time payment some employers provide when terminating an employee?

A) merit pay
B) annual bonus
C) severance pay
D) performance pay
E) competency-based pay

Question 8

What is the maximum number of weeks of unpaid leave that an employee may take under the Family and Medical Leave Act?

A) four
B) six
C) ten
D) twelve
E) sixteen

Question 9

Employers must provide employees who have work-related injuries with all of the following EXCEPT ________.

A) cash benefits
B) medical services
C) hospital services
D) surgical services
E) time off with full pay

Question 10

All of the following benefits are required by federal or state law EXCEPT ________.

A) social security
B) workers' compensation
C) unemployment insurance
D) disability insurance
E) maternity leave

Question 11

Nonfinancial payments like health and life insurance,pensions,time off with pay,and child care facilities are examples of ________.

A) variable pay
B) competency-based incentives
C) benefits
D) salary
E) bonuses

Question 12

Who contributes funds for workers' compensation benefits?

A) state governments
B) federal government
C) medical providers
D) insurance providers
E) employers

Question 13

Which of the following provides pay to an employee when he or she is out of work because of illness?

A) sick leave
B) health insurance
C) severance pay
D) supplemental pay
E) workers' compensation

Question 14

Keith works as a construction foreman,and he is viewed as a reliable,competent employee.Keith was recently injured in a car accident while on vacation,and his injuries are so severe that he will not be able to return to work.Which of the following would most likely provide Keith with benefits?

A) sick leave
B) unemployment insurance
C) workers' compensation insurance
D) supplemental unemployment benefits
E) group life insurance

Question 15

Elizabeth works at an auto firm,which recently shut down for five weeks to change machinery.However,during the shutdown,Elizabeth was able to maintain her standard of living because of the firm's ________.

A) supplemental unemployment benefits
B) workers' compensation insurance
C) supplemental health benefits
D) disability insurance
E) severance pay

Question 16

To be eligible for leave under the Family and Medical Leave Act,an employee must have worked ________ hours during the past twelve consecutive months.

A) 850
B) 1000
C) 1250
D) 1600
E) 1950

Question 17

All of the following are true statements regarding the application of the Family and Medical Leave Act EXCEPT ________.

A) employers may require employees to provide advance notice and medical certification
B) eligible employees must have worked for the employer for at least one year
C) employees must be employed at job sites with at least 50 employees
D) up to 12 weeks must be granted in a twelve-month period
E) employees may take leave on an intermittent basis

Question 18

The indirect financial and nonfinancial payments employees receive for continuing their employment with a company are called ________.

A) reimbursement
B) compensation
C) salary
D) benefits
E) remuneration

Question 19

The Family and Medical Leave Act ________.

A) provides guidelines regarding what rates of return employers should use in computing their pension plan values
B) ensures that an employer must grant an employee up to 12 weeks of leave in a twelve-month period for the birth or care of a newborn child, placement of a child for adoption, to care for a spouse, child, or parent with a serious health condition, or to care for the employee's own serious health condition
C) prohibits an employer's health plan from using incentives to encourage employees to leave the hospital after childbirth after less than the legislatively-determined minimum stay
D) limits the ability of health plans to set annual or lifetime maximums on mental and nervous disorder benefits
E) sets minimum requirements for protecting individuals' health-care data accessibility and confidentiality

Question 20

All of the following are typical reasons that employers provide severance pay when downsizing EXCEPT ________.

A) reducing litigation chances
B) ensuring good public relations
C) reassuring remaining employees
D) showing respect for dismissed employees
E) adhering to federal government requirements

Question 21

Which health benefit is offered by almost all employers?

A) vision insurance
B) chiropractic insurance
C) prescription drug coverage
D) dependant life insurance
E) health maintenance organization

Question 22

COBRA requires most private employers to continue to make health benefits available to terminated or retired employees and their families for a period of time,generally ________ months.

A) 3
B) 6
C) 12
D) 18
E) 24

Question 23

Which of the following requires that most private employers continue to make health benefits available to terminated or retired employees and their families for a period of time?

A) FMLA
B) ERISA
C) COBRA
D) OSHA
E) ADA

Question 24

Which of the following represents the largest proportion of all reported disabilities?

A) disabling injuries
B) respiratory diseases
C) cardiovascular diseases
D) mental illness
E) cancer

Question 25

In which of the following can employers and employees deposit pretax wages to pay for non-catastrophic medical expenses?

A) health maintenance organizations
B) health benefits funds
C) health savings accounts
D) employee pension plans
E) deferred savings plans

Question 26

Which of the following sets minimum mental health care benefits?

A) Civil Rights Act
B) Employee Mental Health Act
C) Americans with Disabilities Act
D) Mental Health Parity Act
E) American Recovery and Reinvestment Act

Question 27

Which of the following is a prepaid health care system that provides medical services for employees who pay a nominal fee?

A) PPO
B) HMO
C) DMO
D) HOC
E) ESOP

Question 28

Which of the following is LEAST likely to explain the growing percentage of part-time workers?

A) economic recession
B) phased retirement programs
C) desire to balance work and family
D) women in the workforce
E) minimum wage increases

Question 29

All of the following are the most likely reasons that mental health costs are rising EXCEPT ________.

A) increased drug abuse within society
B) more mental health referrals by specialists
C) higher alcoholism rates among employees
D) mental health claims triggering health care claims
E) laws requiring employers to offer mental health benefits

Question 30

The primary difference between health maintenance organizations and preferred provider organizations is that ________.

A) PPOs are less costly than HMOs
B) HMOs are more flexible than PPOs
C) HMOs offer mental health services while PPOs do not
D) HMOs allow patients to choose from a list of doctors without gatekeeper doctor approval
E) PPOs allow patients to choose from a list of doctors without gatekeeper doctor approval

Question 31

What was the result of the American Recovery and Reinvestment Act of 2009?

A) Unemployed citizens received COBRA coverage for free.
B) Employers were no longer required to pay COBRA premiums.
C) Employers were required to pay 65% of the COBRA premium.
D) COBRA coverage was extended to employees dismissed for misconduct.
E) COBRA coverage added dental and vision coverage to the health benefits.

Question 32

Which of the following is a popular workers' compensation cost-control measure that involves coordinating the medical care and health insurance coverage for each injured employee?

A) nurse management
B) case management
C) health maintenance
D) supplemental payments
E) medical rehabilitation

Question 33

Which of the following requires employers to treat women affected by pregnancy,childbirth,or related medical conditions the same as any employee not able to work,with respect to all benefits?

A) Family and Medical Leave Act
B) Pregnancy Discrimination Act
C) Comprehensive Omnibus Budget Reconciliation Act
D) Health Insurance Portability and Accountability Act
E) Americans with Disabilities Act

Question 34

Which of the following provides lower rates for the employer or employee and includes all employees regardless of health,physical condition,or length of employment?

A) workers' compensation insurance
B) group life insurance
C) health savings accounts
D) disability insurance
E) pension plans

Question 35

The Consolidated Omnibus Budget Reconciliation Act ________.

A) requires employers to treat women affected by pregnancy, childbirth, or related medical conditions the same as any employee not able to work, with respect to all benefits, including sick leave and disability benefits, health and medical insurance
B) prohibits an employer's health plan from using incentives to encourage employees to leave the hospital after childbirth after less than the legislatively-determined minimum stay
C) limits the ability of health plans to set annual or lifetime maximums on mental and nervous disorder benefits
D) requires that most private employers continue to make health benefits available to terminated or retired employees and their families for a period of time
E) sets minimum requirements for protecting individuals' health-care data accessibility and confidentiality

Question 36

For individuals born in 1960 or later,the full retirement age for non-discounted social security benefits is ________.

A) 55
B) 62
C) 65
D) 67
E) 70

Question 37

All of the following are preventive services offered by employers as part of their wellness programs EXCEPT ________.

A) anti-smoking incentives
B) low-cost immunizations
C) stress management seminars
D) case management services
E) on-site primary care

Question 38

Which of the following best describes the purpose of the Newborn Mother's Protection Act?

A) provide guidelines regarding what rates of return employers should use in computing their pension plan values
B) guarantee pension plans and health insurance coverage for female employees who have recently given birth
C) prohibit employer health plans from using incentives to encourage employees to leave the hospital after childbirth sooner than legally required
D) prevent employers from discriminating against women affected by pregnancy or childbirth in respect to benefits coverage
E) set minimum requirements for accessing the health records of female employees

Question 39

________ are groups of health care providers that contract with employers,insurance companies,or third-party payers to provide medical care services at a reduced fee.

A) PPOs
B) HMOs
C) DMOs
D) ADDs
E) Hospitals

Question 40

All of the following are health care cost-control methods used by employers EXCEPT ________.

A) requiring employees to pay high premiums
B) offering disease prevention programs
C) auditing medical claims for errors
D) requiring disability insurance
E) encouraging medical tourism

Question 41

When an employer makes all of the contributions to the pension plan,the pension plan is classified as ________.

A) qualified
B) non-qualified
C) defined contribution
D) non-contributory
E) defined benefit

Question 42

Jenny must contribute at least 5% of her annual salary to her pension plan,and her employer contributes a set amount as well.She is given choices regarding how the money is invested.When she retires,the amount she has available will depend on how much she invested herself,and the rate of return on the investments she chose.This pension plan could be classified as ________.

A) qualified, defined benefit
B) non-contributory, defined benefit
C) contributory, defined contribution
D) contributory, non-qualified
E) contributory, defined benefit

Question 43

Which of the following refers to a plan in which employees contribute a portion of their earnings to a fund and the employer typically matches the contribution in whole or part?

A) flexible benefits plan
B) group investment plan
C) savings and thrift plan
D) deferred profit-sharing plan
E) employee stock ownership plan

Question 44

All of the following are characteristic of 401(k)plans EXCEPT ________.

A) categorized as a defined contribution plan
B) deduction replaces Social Security tax
C) pretax salary deductions invested
D) administered by investment firms
E) considered a savings and thrift plan

Question 45

Which of the following provides a fixed sum when employees reach a predetermined retirement age or can no longer work due to disability?

A) 401(k) plan
B) workers' compensation
C) Social Security
D) pension plan
E) group life insurance

Question 46

A plan in which the employer's contribution to employees' retirement savings funds is specified is known as a ________.

A) portable plan
B) default investment plan
C) Social Security pension plan
D) defined benefit pension plan
E) defined contribution pension plan

Question 47

Malcolm is interviewing for a new job and he is evaluating the quality of the pension plans offered for each company he is considering.One company offers a pension plan in which the company will make all contributions to the plan and will base his pension benefit on a formula linked to his pay at the time of retirement and the number of years he was with the firm.This pension plan could be classified as ________.

A) qualified, defined benefit
B) non-contributory, defined benefit
C) non-contributory, defined contribution
D) contributory, qualified
E) contributory, defined benefit

Question 48

Medicare provides a wide range of health services to people ________ or over.

A) 55
B) 59
C) 60
D) 62
E) 65

Question 49

How is the Social Security program funded?

A) sale of government bonds
B) tax on employee wages
C) interest earned on foreign loans
D) lottery ticket sales
E) sales tax on luxury goods

Question 50

A plan that contains a formula for determining retirement benefits is known as a ________.

A) defined contribution pension plan
B) employee stock ownership plan
C) defined benefit pension plan
D) cash balance plan
E) 401(k) plan

Question 51

Taxes on employee wages are shared equally by employees and employers and apply to all earnings up to ________.

A) $46,500
B) $63,700
C) $87,900
D) $106,800
E) $124,300

Question 52

Orion is a business software firm based in Atlanta that employs over 400 people.Orion has traditionally provided legislatively required benefits for its employees including Social Security,workers' compensation,and unemployment insurance.In addition,Orion offers employees health and dental insurance.Orion employees work Monday through Friday on a 9 to 5 schedule.Orion's top executives are considering the idea of adding a flexible benefits plan and implementing a flexible work schedule. Which of the following,if true,best supports the argument that Orion should offer its employees a cafeteria plan?

A) Orion lacks the resources to join a low-cost health insurance plan, so the firm belongs to a pool with other businesses.
B) Some Orion employees have indicated that they would like vision insurance, while others have no interest in dental insurance.
C) In the past, Orion's rates for life, health, and dental insurance have been reasonable, and the firm has managed to keep deductibles low.
D) Orion offers its employees a PPO health insurance plan, but employees have expressed interest in an HMO plan.
E) Orion outsources its employee benefits program, so employees go through the plan's administrator when filing claims.

Question 53

Which of the following requires that pension rights be vested and protected by the Pension Benefits Guarantee Corporation?

A) Economic Growth and Tax Relief Conciliation Act
B) Employee Retirement Income Security Act
C) Job Creation and Worker Assistance Act
D) Health Insurance Portability and Accountability Act
E) Social Security Act

Question 54

________ seek to enable employees to balance their job and family responsibilities.

A) Sick leave
B) Pension plans
C) Pay plans
D) Work-life benefits
E) Benefit management systems

Question 55

Which of the following provides guidelines regarding what rates of return employers should use in computing their pension plan values?

A) Employee Retirement Income Security Act
B) Economic Growth and Tax Relief Conciliation Act
C) Job Creation and Worker Assistance Act
D) Social Security Act
E) Equal Pay Act

Question 56

Social Security offers all of the following EXCEPT ________.

A) income for retirees 62 or older who are insured under the Social Security Act
B) survivor's benefits for those insured under the Social Security Act
C) disability payments to employees who become totally disabled
D) tax refunds for retirees who are 55 and older
E) Medicare program administration

Question 57

Individualized plans allowed by employers to accommodate employee preferences for benefits is known by which of the following terms?

A) variable pay plan
B) cafeteria benefits plan
C) matching plan
D) executive perquisite plan
E) life expectancy plan

Question 58

Which of the following benefits is NOT classified as a type of family-friendly benefit?

A) sick leave
B) subsidized child care
C) elder care services
D) on-site fitness facilities
E) flexible work schedules

Question 59

All of the following characterize cash balance plans EXCEPT ________.

A) favors younger employees
B) considered hybrid pension plans
C) offers portability and predictable benefits
D) employees earn interest on contributed amounts
E) employers contribute percentage of employees' current pay

Question 60

________ provide services like financial counseling,child care referrals,elder care referrals,adoption assistance,mental health counseling,and life event planning.

A) Social Security programs
B) Pension plans
C) Employee assistance programs
D) Family-friendly benefits
E) Benefit management systems

Question 61

Orion is a business software firm based in Atlanta that employs over 400 people.Orion has traditionally provided legislatively required benefits for its employees including Social Security,workers' compensation,and unemployment insurance.In addition,Orion offers employees health and dental insurance.Orion employees work Monday through Friday on a 9 to 5 schedule.Orion's top executives are considering the idea of adding a flexible benefits plan and implementing a flexible work schedule. All of the following questions are relevant to Orion's decision to offer flextime and job sharing options to its employees EXCEPT ________.

A) How many of Orion's retirement-age employees are interested in working on a part-time basis?
B) What do surveys indicate regarding overall job satisfaction among Orion employees?
C) How would the productivity level of Orion's employees most likely change?
D) How many Orion employees currently care for their aging parents?
E) What is the average rate of employee absenteeism at Orion?

Question 62

Supplemental pay benefits provide employees with time-off-with pay for jury duty,vacations,funerals,and military responsibilities.

Question 63

Which of the following is an example of a compressed workweek?

A) Maxwell works from 7 am to 3 pm Monday-Friday.
B) Shannon works from 7 am to 5 pm Monday-Thursday.
C) Tom works from 11 am to 7 pm five days per week.
D) Amy works from 9 pm to 5 am five days per week.
E) Bob works from 12 pm to 6 pm Monday-Sunday.

Question 64

Documenting employee absences,conducting exit interviews,and requiring written approval for personal leave are employer methods for controlling unemployment insurance costs.

Question 65

Health care costs have dropped significantly in recent years due to government intervention and the increased use of HMOs.

Question 66

Employee benefits account for about one-third of wages and salaries.

Question 67

Most employees in America receive fourteen days of leave after working for a company for one year.

Question 68

Pooled paid leave plans combine sick leave,vacation,and personal days into a single leave pool and have been blamed for increasing employee absenteeism.

Question 69

Benefits are an important aspect of employee compensation,and they involve the direct financial payments employees receive for remaining with an employer.

Question 70

Orion is a business software firm based in Atlanta that employs over 400 people.Orion has traditionally provided legislatively required benefits for its employees including Social Security,workers' compensation,and unemployment insurance.In addition,Orion offers employees health and dental insurance.Orion employees work Monday through Friday on a 9 to 5 schedule.Orion's top executives are considering the idea of adding a flexible benefits plan and implementing a flexible work schedule. All of the following questions are relevant to Orion's decision to add a cafeteria plan EXCEPT ________.

A) How satisfied are Orion's employees with the current benefits plan?
B) What benefits are available to employees at Orion's main competitors?
C) What costs would Orion incur for switching to a cafeteria benefits plan?
D) How would a cafeteria plan alter Orion employees' Social Security benefits?
E) What effect would a cafeteria plan have on the coverage that Orion employees receive?

Question 71

The stipulations of the Family and Medical Leave Act apply to private employers of 50 or more employees.

Question 72

Curt works at a computer firm that is experiencing financial difficulties.In an attempt to save money and prevent layoffs,the firm is enforcing a temporary reduction in work hours for Curt's division.Curt now works 35 hours a week instead of 40.Which of the following most likely describes this situation?

A) flextime
B) telecommuting
C) job sharing
D) work sharing
E) compressed workweek

Question 73

Anne and Martha are both accountant supervisors at a large marketing firm.Anne works from 7:00 a.m.until 12:00 p.m.each day.Martha takes over the same position at 12:00 p.m.and works until 5:00 p.m.each day.Which of the following most likely describes this type of work arrangement?

A) flextime
B) telecommuting
C) job sharing
D) work sharing
E) compressed workweek

Question 74

Orion is a business software firm based in Atlanta that employs over 400 people.Orion has traditionally provided legislatively required benefits for its employees including Social Security,workers' compensation,and unemployment insurance.In addition,Orion offers employees health and dental insurance.Orion employees work Monday through Friday on a 9 to 5 schedule.Orion's top executives are considering the idea of adding a flexible benefits plan and implementing a flexible work schedule. Which of the following,if true,best supports Orion's decision to offer flextime to its employees?

A) Orion is facing financial difficulties and may need to implement layoffs.
B) Orion's single-parent employees are frequently late when arriving to work.
C) Orion allows some of its employees to telecommute at least one day each week.
D) Many Orion employees must conduct business while traveling to different locations.
E) Orion employs a large number of part-time employees, most of whom are near retirement age.

Question 75

Which of the following best explains why many businesses use employee leasing firms?

A) Firms save money by hiring part-time or temporary workers.
B) Investment opportunities are more plentiful and reliable.
C) Small companies are able to get better insurance rates.
D) Franchise owners can offer more flexible schedules.
E) Small businesses must comply with federal laws.

Question 76

Federal law requires private sector employers to grant a minimum amount of paid vacation leave.

Question 77

Stephanie has opted to work from 7 am to 3 pm so that she can be home when her son finishes school in the afternoons.Her company must offer ________ for Stephanie to have this option.

A) work sharing
B) shift work
C) flextime
D) telecommuting
E) compressed workweeks

Question 78

Which of the following occupations is commonly subjected to compressed workweeks?

A) engineer
B) attorney
C) teacher
D) pilot
E) manager

Question 79

Orion is a business software firm based in Atlanta that employs over 400 people.Orion has traditionally provided legislatively required benefits for its employees including Social Security,workers' compensation,and unemployment insurance.In addition,Orion offers employees health and dental insurance.Orion employees work Monday through Friday on a 9 to 5 schedule.Orion's top executives are considering the idea of adding a flexible benefits plan and implementing a flexible work schedule. Which of the following,if true,undermines the argument that Orion should offer its employees a cafeteria plan?

A) A survey of Orion employees indicates that the majority of employees are very satisfied with the firm's current benefit offerings.
B) Orion experiences very few workers' compensation claims each year as compared to similarly sized businesses in the Atlanta area.
C) Orion employee surveys indicate that most employees are interested in either 401 (k) plans or Roth IRAs as methods of saving for retirement.
D) Absenteeism is a problem among Orion employees, and in most cases the problem is due to inadequate child care.
E) Orion uses an employee leasing firm to handle recruiting, hiring, and benefits administration.

Question 80

Legally required benefits,such as unemployment insurance,are more costly to employers than health insurance.