Deck 11: Employee Benefits

Question 1

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

Answer 1

False

Question 2

On-line benefits programs allow employees self-service freedom and availability virtually any time.

Answer 2

True

Question 3

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

Answer 3

False

Question 4

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

Question 5

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

Question 6

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

Question 7

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 8

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

Question 9

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

Question 10

Compensation specialists often see flexible benefits plans as ideal.

Question 11

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

Question 12

A need for a new benefit should be established before adding it to a benefits package.

Question 13

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

Question 14

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

Question 15

Most on-line benefits systems are adaptable and transfer information with full security.

Question 16

There has been a reduction in the number of single-parent families and two-earner couples in the workplace as compared to decades past.

Question 17

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

Question 18

Benefits generally account for approximately 14% of payroll costs.

Question 19

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

Question 20

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

Question 21

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

Question 22

Worker's 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

Employers pay unemployment taxes directly to their respective state governments,which in turn are responsible for paying eligible unemployed individuals.

Question 24

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.

Question 25

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

Question 26

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 27

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

Question 28

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

Question 29

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

Question 30

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

Question 31

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 32

Some states provide rights to employees that are lesser than those provided by the FMLA.

Question 33

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

Question 34

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

Question 35

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 36

Beginning in 2014,firms that employ fifty or more people who work thirty or more
hours per week but do not offer them health insurance will have to pay a penalty to
the government.

Question 37

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

Question 38

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 39

The Consolidated Omnibus Budget Reconciliation Act requires all employers to provide health care coverage to employees and their spouses for 18 months following termination,death,or divorce of the employee.

Question 40

Employers pay a fixed annual free to an HMO to cover a majority of their employees' medical costs.

Question 41

Unlike private plans,employer-provided plans frequently cover all employees and their dependents regardless of their current health conditions

Question 42

All workers are guaranteed at least ten paid holidays each year.

Question 43

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

Question 44

At the present time,employers are required to provide pension plans to all full-time employees.

Question 45

Unlike PPOs,where employees may have little choice in the doctor they see,HMOs allow employees to select from a list of physicians (participating doctors)their doctor of choice.

Question 46

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

Question 47

The Health Insurance Portability and Accountability Act grants employees the right to switch their medical insurance between former and present employers.

Question 48

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

Question 49

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

Question 50

One approach to preparing workers for retirement is to offer unpaid leave for a few months.

Question 51

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

Question 52

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

Question 53

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

Question 54

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

Question 55

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

Question 56

Severance pay is considered a supplemental unemployment benefit.

Question 57

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

Question 58

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

Question 59

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

Question 60

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

Question 61

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 62

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

Question 63

Benefits can represent more than ______ of the total payroll costs an employer pays.

A) 28 percent
B) 40 percent
C) 52 percent
D) 66 percent

Question 64

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

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

Question 65

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

Question 66

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

Question 67

Mildly ill child-care facilities offer medical supervision in addition to traditional child-care arrangements.

Question 68

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

Question 69

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

Question 70

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

Question 71

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

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

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

Question 74

Which of the following is NOT a general pointer for designing benefits information,regardless of the medium?

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

Question 75

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

Question 76

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

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

Question 77

When communicating benefits programs to employees:

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

Question 78

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

A) Employee self-service systems
B) Cafeteria plans
C) An employee wellness program
D) Social Security plans

Question 79

Which of the following represents the greatest of money to which a dollar of 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 80

A 401(k)plan allows employees the opportunity to build a tax-sheltered savings fund.