Deck 11: Employee Benefits

Question 1

To be eligible for Social Security disability benefits,an individual's disability must have existed for at least one year and must result in,or be expected to result in,death.

Answer 1

True

Question 2

Although some government programs provide money to people with partial disabilities or short-term disabilities,Social Security does not.

Answer 2

True

Question 3

Compensation specialists often see flexible benefits plans as ideal.

Answer 3

True

Question 4

Typically,employees are offered a basic or core benefits package of life and health insurance,sick leave,and vacation.

Question 5

There has been a reduction in the number of single-parent families and two-earner couples in the workplace than there have been in the decades past.

Question 6

Most online benefits systems are adaptable and transfer information with full security.

Question 7

Benefits generally account for approximately 14 percent of payroll costs.

Question 8

Generation Y employees are less likely to be concerned with having pensions than Baby Boomers.

Question 9

Generally speaking,a firm with a record of laying off large numbers of employees will have to pay a lower rate than those that do not.

Question 10

Employers are tailoring their benefits programs to be family-friendly,because employees desire more work-life balance.

Question 11

The Social Security program is funded by a tax paid by an employer,based on an employee's earnings.

Question 12

When communicating benefits packages to employees,using a uniform method or technique is recommended for consistency,so that everyone hears the same message in the same way.

Question 13

The Social Security Act was designed to protect workers against the loss of earnings?resulting from old age and unemployment.

Question 14

Workers who are laid off are eligible for 52 weeks of unemployment insurance per occurrence.

Question 15

A need for a new benefit should be established through consultation with employees before it is introduced.

Question 16

To accommodate the individual needs of employees,it would be desirable for employers to implement a cafeteria plan.

Question 17

Employees can sue employers who deliberately mislead them about health and welfare benefits.

Question 18

An advantage of flexible benefit plans is that if employees make poor selections and do not use their benefits,it saves the employer money.

Question 19

In order to qualify for Social Security benefits,all individuals must be at least 65 years of age.

Question 20

Surveys show that employees who are satisfied with their benefits are more likely to be satisfied with their jobs.

Question 21

Health care plans only cover medical,surgical,and hospital expenses.

Question 22

Workers' compensation insurance rates depend on the seriousness of the occupations,each state's level of benefits for injuries,and the company's frequency and severity of employee injury.

Question 23

Employees do not have to pay taxes on the amounts they are reimbursed under a health reimbursement account.

Question 24

Under the Family and Medical Leave Act,a convenience store owner with 20 employees is required to provide up to 12 weeks of unpaid leave to an eligible employee for medical reasons.

Question 25

The Family and Medical Leave Act permits substitution of paid leave and vacation during leave.

Question 26

To contain health care costs,an employer may increase an employee's deductible amount or co-payments.

Question 27

Workers' compensation laws provide uniform compensation to disabled workers regardless of the state in which they work.

Question 28

Some states provide rights to employees that are lesser than those provided by the Family and Medical Leave Act.

Question 29

As of 2014,firms that employ 50 or more people who work 30 or more hours per week but do not offer them health insurance will have to pay a penalty to the government.

Question 30

One of the major problems of workers' compensation programs is that an injured employee faces substantial legal expense to obtain a settlement.

Question 31

Today,the majority of U.S.employees get health coverage through their employers.

Question 32

Under the Family and Medical Leave Act,an employee returning to work does not necessarily have to be restored to his or her original job or to an equivalent job.

Question 33

The Consolidated Omnibus Budget Reconciliation Act requires all employers to provide health care coverage to employees and their spouses for 12 months following termination,death,or divorce of an employee.

Question 34

Employers pay a fixed annual fee to a health maintenance organization to cover a majority of their employees' medical costs.

Question 35

A preferred provider organization (PPO)is a group of physicians who establish an organization that guarantees the quality of health care provided by a health maintenance organization (HMO).

Question 36

Workers' compensation programs serve to prevent financial disaster to employees who are injured or become ill through their work.

Question 37

Employee costs for medical services provided by a health maintenance organization (HMO)vary according to the type of service and how often the employee needs it.

Question 38

Unlike preferred provider organizations (PPOs),where employees may have little choice in the doctor they see,health maintenance organizations (HMOs)allow employees to select their doctor of choice from a list of physicians.

Question 39

Workers eligible for unemployment benefits must submit an application for unemployment compensation with their state employment agencies,register for available work,and be willing to accept any suitable employment that may be offered to them.

Question 40

If an employee takes a leave of absence under the Family and Medical Leave Act,the employer must continue the employee's medical benefits for the duration of the leave.

Question 41

With contributory pension plans,contributions are made jointly by employers and the government.

Question 42

Almost all workers with health coverage receive mental health benefits as part of their plans.

Question 43

Research shows that workers who use their vacation time are more productive and less prone to job-related burnout.

Question 44

According to the "payment for time not worked" category,all workers are guaranteed at least ten paid holidays each year.

Question 45

Supplemental unemployment benefits are not required by law and are usually funded by an employer.

Question 46

A 401(k)plan is also called a cash-balance pension plan.

Question 47

One estimate is that the "payment for time not worked" category of benefits comprises a large expenditure,which is over 25 percent of the employer's total payroll costs.

Question 48

In a defined-contribution pension plan,the amount an employee is to receive upon retirement is specifically set forth.

Question 49

It is not uncommon for larger companies to cut the health care plans they once provided their retirees.

Question 50

​Unlike defined benefit pension plan,which guarantees nothing,the 401(k)plan guarantees payments based on years of service.

Question 51

The "payment for time not worked" category of benefits includes all absences from work except sick leaves and personal leaves taken by employees.

Question 52

Companies may match employee contributions to a 401(k)with cash or company stock.

Question 53

A 401(k)plan transfers responsibility for investment choices to the employee.

Question 54

Severance pay plans grant employees weekly benefits in addition to state unemployment compensation.

Question 55

Paid time off for hours not worked is not mandatory in the United States.

Question 56

Most companies require their employees to either take their vacation days by the end of the year or forfeit them.

Question 57

Severance pay is considered a supplemental unemployment benefit.

Question 58

Some firms are penalizing employees for unhealthy habits by charging them higher health care premiums for habits such as smoking.

Question 59

Today,employers are required to provide pension plans to all full-time employees.

Question 60

Typically,in a 401(k)savings plan,an employer matches an employee contribution at the rate of 25 to 50 cents for every worker dollar contributed.

Question 61

Employees desiring domestic companion benefits typically must sign:

A)a writ of Common Domestic Marriage.
B)an Affidavit of Domestic Partnership.
C)an Affidavit of Residency within their state of residence.
D)a waiver of legal liability.

Question 62

A common childcare benefit offered by employers is the dependent care spending account.

Question 63

Which of the following benefits is NOT a legally required employee benefit?

A)Employer contributions to Social Security
B)Employer contributions to unemployment insurance
C)Employer contributions to workers' compensation insurance
D)Employer contributions to minimum life insurance

Question 64

Employee assistance programs (EAPs)help employees mainly with relocation costs.

Question 65

Mildly ill childcare facilities offer medical supervision in addition to traditional childcare arrangements.

Question 66

Which of the following represents the greatest expense to which a dollar of the employee compensation goes to in the United States?

A)Supplemental pay
B)Paid leave
C)Legally required benefits
D)Health, life, and disability insurance

Question 67

_____ enable individual employees to choose the benefits that are best suited to their particular needs.

A)Employee self-service systems
B)Cafeteria plans
C)Employee wellness programs
D)Social Security plans

Question 68

Childcare,elder care,and extended leave policies are all examples of work-life benefits.

Question 69

When communicating benefits programs to employees use:

A)correct legal language to avoid subsequent liability.
B)one, uniform method to communicate to all employees.
C)multiple media techniques.
D)graphics and presentation software to conceal unpleasant news.

Question 70

Which of the following is NOT a method that employers commonly use to communicate benefits to employees?

A)Brochures
B)Word-of-mouth
C)Social media
D)Blogs

Question 71

According to the Social Security Administration,in 2014,about _____ people received retirement survivors and disability benefits from Social Security.

A)100 million
B)75 million
C)60 million
D)25 million

Question 72

To obtain employee input regarding benefits packages,employers often use:

A)performance appraisals.
B)psychological tests.
C)union reports.
D)opinion surveys.

Question 73

The communication of employee benefits information improved significantly with the passage of the _____.

A)Employee Retirement Income Security Act
B)Social Security Act
C)Old Age, Survivors, and Disability Insurance Act
D)Consolidated Omnibus Budget Reconciliation Act

Question 74

Online benefits systems are often referred to as _____ and can result in significant cost savings in benefits administration.

A)cafeteria plans
B)value-based initiatives
C)employee self-service systems
D)high-deductible health insurance plans

Question 75

A standard definition of domestic partnership includes all of the following EXCEPT:

A)a requirement that the couple live together.
B)a specification of financial interdependence.
C)a requirement that the relationship be a permanent one.
D)a minimum term of cohabitation requirement.

Question 76

Regardless of the medium,which of the following is NOT a general pointer for designing benefits information?

A)Avoid complex language when describing benefits. Clear, concise, and understandablelanguage is a must.
B)Explain the purpose behind a benefit and the value it offers employees. Be up frontabout the pros and cons of different benefit plans.
C)Provide numerous examples to illustrate how a benefit choice might affect differenttypes of employees, depending upon their personal circumstances.
D)Avoid the use of graphics whenever possible to make the information understandable and prevent confusion.

Question 77

Benefits can represent more than ______ of the employer's total payroll costs.

A)28 percent
B)7 percent
C)12 percent
D)66 percent

Question 78

Vesting is a guarantee of accrued benefits to participants at retirement age,provided they are currently employed.

Question 79

With a diverse workforce,more employers are willing to provide benefits to employees who establish a:

A)dual taxing relationship.
B)joint employment status.
C)codependent relationship.
D)domestic partnership.

Question 80

Flexible benefit plans:

A)are offered to employees who then must purchase each benefit they select.
B)are favored by employers because they reduce administration costs.
C)result in wasted benefits because of the number of different types available to employees.
D)allow employees to choose benefits suited to their needs.