Deck 13: Employee Benefits

Question 1

About what percent of employers provide sick leave of some type - either through an all-encompassing PTO plan or specifically as "sick days"?

A)21%
B)45%
C)66%
D)86%
E)95%

Answer 1

D

Question 2

What is the normal maximum period of time for which an individual can receive unemployment benefits?

A)1 week
B)6 weeks
C)12 weeks
D)26 weeks
E)1 year

Answer 2

D

Question 3

The governmental corporation established within the Department of Labor whose purpose is to insure retirement funds from failure is the ______.

A)ERISA
B)PBGC
C)FDIC
D)HSBC
E)FSLIC

Answer 3

B

Question 4

403(b) plans are :

A)Healthcare plans for government employees
B)Savings accounts for individuals
C)Retirement plans for non-profits
D)Healthcare plans for medical facilities
E)Retirement plans for government employees

Question 5

Which entity manages mandatory Workers' Compensation programs?

A)The federal government
B)Regional governments
C)State governments
D)Municipal governments
E)County governments

Question 6

Employee benefits average what percentage of total employee compensation cost in U.S.firms?

A)10%
B)30%
C)40%
D)50%
E)70%

Question 7

What type of insurance account allows the employer and employee to fund a medical savings account from which the employee can pay medical expenses in pretax dollars?

A)HSA
B)EME
C)GEN
D)MEP
E)OPE

Question 8

FMLA affects companies with __ or more employees within 75 miles of a central location.

A)15
B)20
C)30
D)50
E)100

Question 9

Who would typically find an SEP useful?

A)Government executive service officers
B)Corporate executives
C)Nonprofit directors
D)Unionized state employees
E)Self-employed individuals

Question 10

In 2014,the maximum contribution a person could make to an IRA was:

A)$3,000
B)$5,000
C)$10,000
D)$40,000
E)$1 Million

Question 11

The insurance program designed to provide medical treatment and temporary payments to employees who cannot work because of an employment-related injury or illness is:

A)Unemployment insurance
B)Workers' compensation
C)Government disability insurance
D)Social Security disability
E)Portability option

Question 12

Regular FMLA leave is typically associated with __________ leave?

A)6 weeks paid
B)6 weeks unpaid
C)12 weeks paid
D)12 weeks unpaid
E)18 weeks unpaid

Question 13

The Patient Protection and Affordable Care Act of 2010 mandates that companies with at least ______ employees provide health care coverage by 2014 or face penalties for not providing health insurance.

A)15
B)20
C)50
D)75
E)100

Question 14

How many credits must an individual receive in a lifetime to become eligible for social security retirement?

A)20
B)40
C)50
D)65
E)67

Question 15

A major medical plan that protects against catastrophic healthcare costs is the ______.

A)HGTN
B)HDHP
C)NETS
D)CHCP
E)WHIL

Question 16

What is the most common percentage group health insurance split between the insurance plan and the individual in a traditional health plan (in other words,who pays)?

A)50/50
B)60/40
C)70/30
D)80/20
E)90/10

Question 17

COBRA allows continued health coverage for most employees for _____ months if the employee pays ________ of the premium for such coverage.

A)6; 55%
B)12; 102%
C)15; 100%
D)18; 102%
E)36; 120%

Question 18

If you were born 1967 or later,according to Social Security benefit schedules,when is your retirement age?

A)60
B)62
C)65
D)67
E)70

Question 19

According to the Patient Protection and Affordable Care Act of 2010,children can stay on their parents' health care insurance until what age?

A)18
B)20
C)21
D)23
E)26

Question 20

If I know what retirement pay and benefits I am getting upon retirement,what kind of retirement plan do I have?

A)Undefined benefit
B)Undefined contribution
C)Defined benefit
D)Defined contribution
E)Annualized benefit

Question 21

Under FMLA,a(n) ___________ means an illness,injury,impairment,or physical or mental condition that involves either inpatient care or continuing care for at least three consecutive days.

A)massive medical trauma
B)major hospital experience
C)serious health condition
D)significant medical concern
E)obvious work displacement

Question 22

_________identify the funds that go into retirement but don't help you determine what you get when you retire.

A)Defined benefit plans
B)Defined contribution plans
C)401c-3 plans
D)MSA plans
E)HDHPs

Question 23

FMLA leave,when associated with care of a service member,is allowed for as many as ____ work weeks in a 12-month period.

A)6
B)12
C)18
D)26
E)36

Question 24

A worker would most likely be eligible for unemployment if they:

A)Quit their job voluntarily.
B)Were terminated for cause.
C)Start their own business after being terminated from another company.
D)Are actively looking for work.
E)Fail to disclose any money earned while claiming unemployment.

Question 25

What is the earliest age at which an eligible worker can retire and still receive his/her Social Security retirement benefits?

A)55
B)60
C)62
D)65
E)67

Question 26

COBRA applies to companies who provide company sponsored health insurance and have at least how many full-time equivalent (FTE) employees?

A)1
B)15
C)20
D)30
E)50

Question 27

Which of the following statements is true concerning employee benefits?

A)Employees generally have a thorough understanding of the benefits available to them and the true cost and value of those benefits.
B)Employees who are satisfied with their benefits are more satisfied with their jobs.
C)Employers do a good job of communicating the value of benefits programs to employees.
D)Employees,for the most part,just don't care about benefits.
E)Employee benefits have been shrinking as a percentage of overall compensation for the past twenty years.

Question 28

Unemployment insurance in virtually all states is financed primarily through taxes on:

A)Employees and employers.
B)Employers only.
C)For-profit employers only.
D)Employees only.
E)Employers with more than 50 employees.

Question 29

In an HMO,the patient pays a _________ each time he or she visits.

A)facility payment
B)prepayment
C)copayment
D)reverse insurance
E)referral

Question 30

_____ is a review of the cost of a program such as a health care plan,and a comparison of program costs with the rate of the program's usage by the members of the company.

A)Assessment
B)Evaluation
C)Experience rating
D)Utilization analysis
E)Accreditation analysis

Question 31

Which employer-provided benefit is NOT mandatory?

A)Social Security
B)Workers' compensation insurance
C)Defined benefit pension
D)Family and medical leave
E)Unemployment insurance

Question 32

The employer and employee each pay a tax of about _____ percent of the employee's paycheck into Social Security for OASDI only?

A)5%
B)6.2%
C)7.9%
D)10.3%
E)12.4%

Question 33

Under an HMO health plan,______________ will be the first point of contact for all preventative care and in any routine medical situations.

A)Medical specialists
B)Emergency medical personnel
C)Nurses
D)Certified first-responders
E)Primary care physicians

Question 34

A(n) __________ would be used to measure how often claims are made against a workers' compensation insurance policy.

A)Test history
B)Analysis rating
C)Volume match
D)Experience rating
E)Insurance record

Question 35

Which of the following has NOT been a reason for growth in employer-provided benefits?

A)The tax advantages of benefits to both employees and employers.
B)The ability of employers to "buy in bulk.
C)The growing desire of employees to trade more benefits for less direct pay.
D)The influence of collective bargaining agreements on both union and non-union environments.
E)More,and more significant,statutory requirements for various types of benefits.

Question 36

All of the following statements concerning workers' compensation are true except one.Which one?

A)Workers' compensation insurance is paid for by employers.
B)Payments to injured workers are permanent in most cases.
C)Workers' compensation is mandatory in 49 states.
D)It is a form of no-fault insurance - it doesn't matter who was wrong,it still pays.
E)Companies can manage their costs to an extent by managing their experience rating.

Question 37

_________ rules provide a maximum amount of time beyond which the employee will have unfettered access to his or her retirement funds,both employee contributions and employer contributions.

A)Vesting
B)Period limit
C)Portability
D)Fiduciary responsibility
E)Liquidity

Question 38

________ are a kind of hybrid between traditional fee-for-service plans and HMOs.

A)PPOs
B)BESs
C)AFEs
D)TMOs
E)SAFs

Question 39

Which statement about HMOs is incorrect?

A)Employees can usually choose any physician in their area as their doctor.
B)Preventive care is covered by HMO plans.
C)The cost of an HMO plan is generally significantly less than traditional plans.
D)HMO's may limit the number and types of procedures that they will pay for under the plan.
E)The PCP is generally paid a flat fee per patient for annual care of that patient.

Question 40

Social Security was originally designed to pay about what percentage of pre-retirement income when an individual retired?

A)25%
B)30%
C)40%
D)50%
E)60%

Question 41

Most health care premiums present a tax advantage to:

A)the employee and the employer
B)the employee
C)the employer
D)the dependent children

Question 42

HIPAA requires:

A)that all companies pay for employee health insurance.
B)employers to provide a breakdown of healthcare costs so that their employees can make smart decisions about where to buy.
C)insurance portability - if the employee was covered at a previous employer and their new employer offers insurance,they have to be offered coverage.
D)that employers offer continuing insurance to employees who leave the company for a period of at least 18 months.
E)employers to account for the amount of money they spend annually on healthcare.

Question 43

Under the Patient Protection and Affordable Care Act,the "pay or play" provision means that:

A)All employers with more than 15 employees have to offer health insurance benefits or they will face financial penalties.
B)All employers have to offer health insurance benefits or their state taxes will increase.
C)they have to participate in the health care exchanges or they have to offer health insurance benefits through the company.
D)all employers with more than 50 employees have to offer health insurance benefits or they will face financial penalties.
E)All employers have to offer health insurance benefits or have to subsidize employee purchases of individual plans at a rate of 80% of the cost of the insurance.

Question 44

In ordinary times,unemployment benefits are paid out for how long?

A)12 weeks
B)52 weeks
C)26 weeks
D)it varies for each statee

Question 45

Under an HSA health plan,which of the following is not true?

A)The employee's HSA cash balance is portable - they can take it with them to their new employer if they change jobs.
B)The employee must see their PCP first,before being allowed to go to a specialist.
C)The patient does not pay a copayment every time they visit their physician.
D)Federal rules require that HSAs be paired with HDHP "major medical" plans.
E)The employee 'sees' the total cost of their health care because they have to pay it out of the HSA balance.

Question 46

Social security retirement was only designed to pay about ____ of pre-retirement income

A)30%
B)50%
C)10%
D)60%

Question 47

Part of the imbalance with Social Security exists because

A)retirees topped the maximum salary range,a phenomenon not accounted for when the law was written.
B)more than 50% of retirees eligible for early retirement accepted it
C)wars led to a greater number of disability retirement payments
D)there are more retirees drawing from the system than there are younger workers paying into the system.

Question 48

Because of the problems associated with excessive leave under the FMLA,companies can do all of the following except:

A)Require the employee to use ALL paid leave before using FMLA leave.
B)Require that the employee provide a reason for the leave documented by a health care provider at the employee's expense.
C)Enforce the requirement that the employee provide 30 days' notice of their intent to use FMLA unless it is an unforeseen problem.
D)Require periodic recertification of the need for FMLA when the condition lasts for an extended time period.
E)Require that the employee pay for a second health care provider opinion (of the employer's choosing) if the employer believes that the initial FMLA document is falsified.

Question 49

What is the main reason that companies have been rapidly shifting from a defined benefit to defined contribution retirement plans?

A)Defined contribution plans shift the investment risk to the employee instead of the employer bearing the risk
B)Defined benefit plans were seen by employees as a "poor man's retirement plan".
C)Defined contribution plans split the investment risk between the company and the employee - a "fair" agreement.
D)Defined contribution plans let the employee know exactly what they will receive in retirement benefits.
E)Defined contribution retirement plans are easier for HR managers to calculate,so there is less management time required.

Question 50

Benefit plans allowing employees to pick and choose their benefit mix are called:

A)Employee Choice plans
B)Pay to Play plans
C)Selection Decision plans
D)Cafeteria plans
E)Organizational Allowance plans

Question 51

Full-choice cafeteria plans are designed to do what?

A)Give the employee a choice between several different plan types based on the type of employee (e.g.young couple without children or older couple with grown children).
B)Give the employee full flexibility in their choice of benefits provided by the company within a specified monetary value.
C)Give the employee a choice of having company-paid benefits or just taking the cash value of the benefits.
D)Give the employee a choice of getting benefits from the company or taking advantage of a tax break for not having to pay for benefit costs.
E)Give the employee full flexibility in choosing some of their benefits,but have a basic set of benefits provided to everyone in the organization.

Question 52

The ERISA Act requires all of the following except:

A)All employees who have worked for more than one year and are over 21 years of age must be offered participation in any company-sponsored retirement plans.
B)Federal vesting rules must be followed,with a maximum vesting period of 100% at five years,or 20% per year from years 3 through 7.
C)Employee retirement accounts must be portable.When the employee changes jobs,their retirement funds can be transferred to their new employer or another qualified investment.
D)Fiduciaries who manage company retirement programs must act under the prudent man concept that says they should use care and diligence when investing retirement funds.
E)All employers must provide some form of employee retirement system for employees who are over the age of 21 and who request retirement accounts.

Question 53

Benefit plans should be

A)valuable to the employees regardless of the cost to the organization
B)affordable for the organization regardless of the value to the employee
C)designed around mandatory requirements only
D)valuable to the employees and affordable for the organization

Question 54

Which type of retirement plan guarantees the amount and type of a retiree's benefits?

A)401(k) plans
B)Defined contribution plans
C)Defined benefit plans
D)SEP retirement plans
E)Gainsharing plans

Question 55

One reason for re-evaluating social security is because

A)there have been changes in the lifespan of the retiree population.
B)congress did not intend the law to cover both men and women since men were primarily the wage earners when the law first passed in 1935.
C)the law was written to have a re-evaluation in the new millennium.
D)the global economy affected the value of the retirement dollar.

Question 56

Employees consider their employment benefits a(n):

A)tax incentive
B)entitlement
C)cash alternative
D)motivation

Question 57

During the last 80 years,congress added multiple mandatory employee benefits,causing the cost of providing benefits to

A)decrease
B)stay the same
C)increase
D)adjust for inflation

Question 58

Workers' compensation is mandatory

A)in all 50 states and US territories
B)in 48 of 50 states
C)only in the right-to-work states
D)only in California and Massachusetts

Question 59

Which of the following types of PTO is mandatory for U.S.employers?

A)Paid federal holidays
B)Paid annual leave
C)Paid sick leave
D)Paid personal leave
E)There are no mandatory PTO requirements for companies in the U.S.

Question 60

Worker's compensation insurance rates are determined by all factors except

A)the risk of occupation
B)the frequency and severity of past claims
C)past judge and jury awards to victims
D)level of benefit payable,based on state regulations

Question 61

________ is a voluntary benefit consisting of vacation/annual leave,personal time off,sick days,holidays,and severance pay.

A)Contributory pay
B)PTO
C)Deferred compensation
D)Fiduciary rule

Question 62

Natalie and her employer both pay 1.45 percent of Natalie's pay into __________ by withholding the money from Natalie's pay check.

A)Social Security
B)Medicare
C)unemployment insurance
D)retirement

Question 63

In an HMO,the ________________ will be the first point of contact for all preventive care and in any routine medical situation except emergencies.

A)case manager
B)network administrator
C)insurance carrier
D)physician

Question 64

Upon completion of FMLA leave,the employee will return to work to

A)any open position
B)an equivalent position
C)a position of promotion
D)any part-time position

Question 65

Michaela and Carolyn are discussing changes to the benefits program at their organization.Michaela would like to see the organization provide more lifestyle benefits such a doggy day care.Carolyn is pushing for more dental and disability coverage.What consideration in providing benefits programs are Michaela and Carolyn discussing?

A)amounts
B)mix
C)flexibility
D)vesting

Question 66

With some exceptions,most individuals who are eligible for unemployment benefits will receive:

A)about 60% of their wages
B)about 50% of their wages
C)100% of their wages
D)100% of their wages,and health insurance

Question 67

In order to communicate the value of benefit programs,which communication channels should we use?

A)standard mail
B)email
C)social media
D)all of the above

Question 68

Sasha's organization offers employees a choice of different benefits.Since Sasha has two children,she selected child-care vouchers and sick child coverage from the list of benefits.What consideration in providing benefits programs is Sasha using?

A)amounts
B)mix
C)flexibility
D)vesting

Question 69

In examining her organization's benefits package,Monica has determined that the organization can provide a 40 percent premium to direct compensation for the cost of benefits.What consideration in providing benefits programs has Monica addressed?

A)amounts
B)mix
C)flexibility
D)vesting

Question 70

Swapping holidays to observe a holiday of choice that would normally be unpaid; for instance,swapping Christmas Day for Yom Kippur,is called _________

A)a floating holiday
B)flexible design
C)diversity program
D)multicultural swap

Question 71

Executive compensation in the form of a deferred contribution to the executive's retirement accounts is one of the most common forms of _________ retirement funds.

A)governed
B)qualified
C)nonqualified
D)challenged

Question 72

Due to a recession,Lauren was laid off by her organization.To avoid having Lauren and other laid off workers stop spending money and thus deepen the recession,__________ will help them maintain some income.

A)Social Security
B)Medicare
C)unemployment insurance
D)worker's compensation

Question 73

Whitney earns about $100,000 a year.She and her employer both pay 6.2 percent of Whitney's pay into __________ by withholding the money from Whitney's pay check.

A)Social Security
B)Medicare
C)unemployment insurance
D)retirement

Question 74

Under the ACA,an "affordable plan" means one which

A)costs less than 15% of the national average household income
B)costs less than on the state's exchange
C)will not exceed 9.5% of an employee's take-home pay
D)will not exceed 9.5% of employee's household income

Question 75

Which type of life insurance policy is most commonly offered?

A)Whole life
B)Group term life
C)Employee life
D)Premium life

Question 76

Alfred has requested unpaid leave to care for his wife.She was injured while serving in the Army in Afghanistan.Alfred may be able to take this leave and return to his original job (or an equivalent one) under ________.

A)Social Security
B)the Affordable Care Act
C)the Family Medical Leave Act
D)Medicare

Question 77

"Qualified plans" under ACA must

A)pay 60% or more on allowed charges and meet minimum benefits standards
B)provide benefits as good as,or better than,Medicare Parts A,B,C,and D
C)extend prescription coverage to the enrolled cardholder,but not dependents
D)pay 60% ot more on all in-hospital services,even elective procedures

Question 78

Paige was working on a graphic design project for her employer when she cut her hand with scissors and needed stitches.Her employer paid for the doctor's visit to get the stitches under _________.

A)Social Security
B)Medicare
C)unemployment insurance
D)worker's compensation

Question 79

Matthew has just had a child placed in his foster care.He has requested unpaid leave to care for the child.Matthew may be able to take this leave and return to his original job (or an equivalent one) under ________.

A)Social Security
B)the Affordable Care Act
C)the Family Medical Leave Act
D)Medicare

Question 80

ERISA requires employers who offer insurance or retirement plans to provide all of the following except:

A)a summary plan description
B)a summary of significant plan changes
C)an annual report to members
D)a list of all beneficiaries