Deck 10: Employee Benefits and Services

Question 1

All the provincial Workers' Compensation Acts involve the principle of "collective liability," which means:

A)that compensation is paid collectively by employers and employees.
B)compensation is payable by employers collectively.
C)that all parties are liable for accidents.
D)that society is responsible collectively for worker safety.
E)employees are legal responsible for their own safety.

Answer 1

B

Question 2

The basic types of benefits and services include those that are:

A)legally required.
B)demanded by employees.
C)low cost.
D)required by union contracts.
E)to do with health matters.

Answer 2

A

Question 3

The government program designed to alleviate the monetary concerns of Canadian workers during the transition from one job to another is called:

A)unemployment insurance.
B)workers' compensation.
C)employment insurance.
D)employment transition supplement.
E)guaranteed income supplement.

Answer 3

C

Question 4

One of the reasons legally required benefits and services are important to human resource departments is:

A)organizations hold the human resource department responsible for meeting legal obligations.
B)failure to obey legal requirements can decrease absenteeism and turnover.
C)failure to meet legal obligations can result in organizational savings.
D)failure to meet legal requirements is one of the major causes of unionization.
E)they replace voluntary organizational benefits.

Question 5

In compensation administration,pay is called:

A)indirect compensation.
B)absolute compensation.
C)direct compensation.
D)relative compensation.
E)equity compensation.

Question 6

Benefits and services amount to over __________ of the average Canadian firm's total payroll costs.

A)15 percent
B)25 percent
C)30 percent
D)40 percent
E)50 percent

Question 7

In 1999,the Supreme Court of Canada ruled that governments cannot limit benefits by discriminating against:

A)same-sex couples.
B)common-law opposite-sex couples.
C)all common-law relationships (both same-sex and opposite-sex).
D)common-law same-sex couples.
E)elderly couples.

Question 8

except:

A)benefits based on hours rather than weeks worked.
B)benefit eligibility for self-employed people.
C)a family income supplement top-up for low income families.
D)reduction in the minimum benefit entitlement period.
E)collection of premiums based on first dollar earned.

Question 9

The Canada Pension Plan and the Quebec Pension Plan are both contributory plans,which means that:

A)only employees contribute to the plans.
B)only employers contribute to the plans.
C)both the employer and the employee pay part of the cost.
D)employers only have to contribute if they wish to.
E)employees may withdraw their contributions by dropping out of the plans.

Question 10

Acts that entitle workers to some form of compensation in the event of personal workplace-related injury:

A)exist in all provinces except Quebec.
B)exist in all ten provinces but not in the three territories.
C)exist in all ten provinces and all the territories.
D)exist only in Ontario,Manitoba,Saskatchewan,British Columbia,Nova Scotia,and Newfoundland.
E)used to exist provincially,but have all been replaced by one federal compensation act.

Question 11

Some of the benefits of indirect compensation to employers usually include all the following except:

A)reduced employee fatigue.
B)satisfied employees.
C)reduced turnover.
D)enhanced recruitment.
E)increased labour unrest.

Question 12

The objectives of society,organizations and employees have encouraged rapid growth of benefits and services in all of the following areas except:

A)income security.
B)life insurance.
C)employment insurance.
D)time-off.
E)retirement plans.

Question 13

Benefits that employers gain from indirect compensation usually include:

A)increased turnover.
B)higher overtime costs.
C)increased labour unrest and/or moves to unionize.
D)assisting recruitment efforts.
E)increased worker fatigue.

Question 14

Unemployment insurance was started in Canada in 1940,and was further significantly modified by the Unemployment Insurance Act of 1971;in 1995 the concept was officially renamed:

A)unemployment assurance.
B)unemployment insurance 1995.
C)employment insurance.
D)employment equity.
E)guaranteed income supplement (GIS).

Question 15

Sources of financial protection provided workers by government legislation include all of the following except:

A)Minimum -wage acts.
B)Human rights acts.
C)Canada Pension Plan.
D)Workers compensation acts.
E)Employment Insurance.

Question 16

Under the Employment Insurance Act and current regulations,self-employed persons:

A)are not eligible for benefits.
B)are eligible for parental,adoption,medical,and compassionate-care benefits.
C)are as eligible for benefits as any other Canadian.
D)are eligible if self-employed in some fields,but does not include areas such as knowledge workers.
E)are only eligible if they have arrived as immigrants within the last five years.

Question 17

In compensation administration,benefits and services are referred to as:

A)indirect compensation.
B)equity compensation.
C)absolute compensation.
D)direct compensation.
E)relative compensation.

Question 18

In compensation administration,benefits and services seek to satisfy several objectives,including:

A)societal objectives only.
B)organizational objectives only.
C)employee objectives only.
D)both societal and organizational objectives.
E)three objectives: employee,societal and organizational.

Question 19

The Canada Pension Plan is all the following except:

A)mandatory.
B)portable.
C)contributory.
D)guaranteed.
E)applicable to all employees in Canada.

Question 20

Benefits and services are referred to as indirect compensation because:

A)they are based on critical job factors or performance.
B)they are given indirectly rather than appearing on a pay cheque.
C)they can't be spent like money.
D)they are usually extended as a condition of employment rather than directly related to performance.
E)they are paid out to other family members.

Question 21

The types of benefits that may be in demand for employees in the future are all of the following except:

A)elder care.
B)out of Canada coverage.
C)prepaid legal advice.
D)more and longer vacations.
E)sabbatical leaves.

Question 22

Defined Contribution (DC)Plans are benefits plans based on:

A)the number of year of service.
B)amounts contributed by the employer and the employee,the final pension depending on amounts contributed,investment income,and economic conditions at retirement.
C)a formula based on age and length of service,with the employer assuming responsibility for funding.
D)the age of the employee and economic conditions at retirement.
E)a formula based on age and length of service,with the employer assuming full responsibility for funding.

Question 23

Defined Benefits (DB)Plans are benefit plans whose benefits are determined by:

A)a formula based on age and length of service,with the employer assuming responsibility for funding.
B)amounts contributed by the employer and the employee,the final pension depending on amounts contributed,investment income and economical conditions at retirement.
C)a formula based on the amount contributed by the employer and employee,as well as the employees age,length of service and economic conditions at retirement.
D)solely the number of years of service of the employee.
E)similar to RRSPs where employees can directly manage their pension funds.

Question 24

The two types of Registered Pension Plans offered by employers to their employees are:

A)defined benefit and defined contribution plans.
B)defined contribution and supplemental retirement plans.
C)defined benefit and vested retirement plans.
D)supplemental retirement and defined contribution plans.
E)vested retirement and supplemental retirement plans.

Question 25

Management has to take into account changes in the labour force that will influence the type of benefits that will be desired by employees in the future.These labour force changes include all of the following except:

A)more woman in the workforce.
B)an increase in the average age of the labour force.
C)more part time workers.
D)fewer employees choosing retirement.
E)woman will work longer.

Question 26

To cover the requirements of the Pension Benefits Standards Act,the means of funding private organizational pension plans must be carried out by one or another of the following except:

A)an insurance company authorized to conduct business in Canada.
B)a corporate pension society.
C)an arrangement administered by the federal or provincial government.
D)a private trust company formed solely of employees and the employer.
E)a trust in Canada whose trustees are specifically defined.

Question 27

The federal Pension Benefits Standards Act requires that:

A)pension funds be held in trust by the pension members.
B)employers must have a minimum vesting period of forty years.
C)the funds not be under the complete custody and control of either the employer or the employees.
D)the funds be under the complete custody and control of the employer.
E)the funds be under the complete custody and control of the employees.

Question 28

With the exception of Saskatchewan,federal and provincial laws specify an annual minimum vacation entitlement of __________ or greater for employees with less than 5 years of employment with the company

A)one week
B)ten days
C)three weeks
D)two weeks
E)four weeks

Question 29

Voluntary employee insurance benefits can include all the below except:

A)life insurance.
B)health-related insurance.
C)short-term disability insurance.
D)long-term disability insurance.
E)health insurance plans such as the Medical Care Act.

Question 30

Relocation programs are designed to:

A)Assist employees who must move in connection with their job.It is the support in dollars and services.
B)Assist employees who must move departments within the company.
C)Assist employees who wish to move to a different branch office in the same city.
D)Move employees to different departments to find a good job fit for them.
E)Move employees who wish to try different positions in the company.This program allows them to view qualifications,determine what skills/knowledge they already have and what skills/knowledge they need to gain.

Question 31

Additional insurance that companies can provide for employees can include all of the following except:

A)medical insurance during travel.
B)dental insurance.
C)group life insurance.
D)vacation time insurance.
E)disability insurance.

Question 32

Some employee services that organizations can offer employees beyond pay and the more traditional benefits can include all of the following except:

A)stock purchase programs.
B)drug rehabilitation programs.
C)family counselling.
D)severance pay.
E)subsidized home-ownership mortgages.

Question 33

Paid time-off benefits for employees can include all the below except:

A)on-the-job coffee and lunch breaks.
B)sick leave.
C)holidays.
D)educational assistance.
E)vacations.

Question 34

Canada's public health and medical insurance coverage is provided by:

A)the provincial governments.
B)the federal government.
C)the provincial governments with assistance from the federal government.
D)by employees through direct and explicit payroll deductions (separate from private or company plans).
E)as a free service by Canada's private insurance companies.

Question 35

Workers' Compensation Acts are administered by:

A)employers.
B)employees' unions.
C)the federal government.
D)private certified outside agencies.
E)the provincial governments of each province.

Question 36

Some organizations offer more than pay and traditional benefits,including all the following except:

A)educational assistance.
B)employee discounts.
C)employee assistance programs.
D)relocation programs.
E)workers' compensation.

Question 37

Employees usually seek employer-provided benefits and services because all the following except:

A)of lower costs and availability.
B)of lower income taxes.
C)of being (at least partially)protected from inflation.
D)in order to keep their jobs.
E)to obtain supplementary benefits that may not be obtainable otherwise.

Question 38

Vesting is a provision in employer-provided pension plans that:

A)allows employees to invest extra funds in the plan.
B)allows employers to divest themselves of pension responsibilities.
C)gives workers the right to a pension after a specified number of years.
D)is the opposite of portability.
E)allows employees to quit their jobs and give up their pension rights.

Question 39

Employee Assistance Programs (EAP)are comprehensive company programs that:

A)seek to assist employees with specific work related problems that the employee may be encountering.
B)seeks to help employees and their families over come personal and work-related problems.
C)seeks to assist employees with personal problems going on outside of the workplace but are having a negative affect on their productivity in the workplace.
D)seeks to assist employees with the financial burden of school by offering courses or student loans.
E)seeks to assist families of employees with relationship counselling.

Question 40

Some optional non-insurance benefits that can enhance employee security can include all the following except:

A)supplemental unemployment benefits.
B)Canada Pension Plan.
C)defined benefit plans.
D)employment income security.
E)defined contribution plans.

Question 41

Among the concerns of human resource departments in regards to employee financial security plans are all of the following except:

A)to challenge unjustified or fraudulent claims.
B)to be certain that the firm adheres to all legal provisions.
C)to avoid duplication between legally required and voluntary benefits.
D)to reduce accidents to reduce compensation costs.
E)to pay claims regardless of documentation.

Question 42

Studies seem to indicate that since employees have little choice in their individual benefit package,problems that human resource departments often have to overcome is/are:

A)heightened employee awareness of what their benefits are.
B)a general lack of interest in the compensation system.
C)encouraging employees to ask for more benefits.
D)employee appreciation of the compensation package.
E)paying for benefits.

Question 43

Studies have shown that innovative and flexible employee benefit plans,particularly in high-tech companies,can:

A)have little impact on attracting desirable recruits in a very competitive market.
B)cover for large differences in salaries between competing companies.
C)assist in retaining skilled staff.
D)have little impact on a firm's competitive advantage.
E)can be provided at no cost.

Question 44

Flexible benefit programs can involve:

A)lower administrative costs.
B)lower employee participation.
C)increased obligation on behalf of the human resource department to communicate with employees.
D)greater employee clarity about what benefits are offered.
E)less involvement by the human resource department.

Question 45

The central problem in the administration of supplementary compensation is:

A)the lack of employee involvement.
B)management disinterest.
C)union interference.
D)the disorganization of many human resource departments.
E)a result of the organization's external environment.

Question 46

Reasons that the management of indirect compensation services and benefits has often been poorly done include:

A)the fact that many of these were introduced haphazardly in response to numerous pressures.
B)they are not particularly costly or difficult to administer.
C)human resource departments often spent too much time over-developing and co-ordinated objectives.
D)management has usually avoided any co-ordinated organization of these to prevent making them official.
E)human resource departments set too complex and detailed systematic plans and standards.

Question 47

Compensation programs that allow employees to select a mix of benefits and services are referred to as:

A)blended benefit programs.
B)cafeteria benefit programs.
C)optional benefit programs.
D)equity benefit programs.
E)selective benefit programs.

Question 48

One approach that readily identifies inefficiencies in the administration of benefit plans is a:

A)benefit audit.
B)retention audit.
C)benefit survey.
D)compensation audit.
E)benefit analysis.

Question 49

An example(s)of how universal benefit packages within an organization may fail to achieve the same level of appreciation among all employees is/are:

A)the young employee who regards pensions as distant and largely irrelevant.
B)the single parent who likes the company daycare.
C)the overall appreciation of coffee and lunch breaks.
D)single and/or older workers who actively desire maternity benefits.
E)having a benefit that every employee wants.

Question 50

Benefits of the cafeteria style approach to employee benefits includes all of the following except:

A)providing workers with a benefit and services account with a certain dollar value.
B)allowing employees to select benefits and services that match their own needs.
C)providing workers with a list of the price of each benefit.
D)providing a description of each benefit.
E)allowing workers to select the benefits they want,even from outside the organization's offerings.

Question 51

To properly control and administer employee financial security benefits,human resource departments need to:

A)design voluntary benefits to duplicate legally required benefits.
B)worry less about reducing on-the-job accidents.
C)challenge unjustified compensation claims.
D)let the legal department worry about the legal provisions of benefits.
E)not worry about costs.

Question 52

Reasons that the amount of change in the employee benefits field has been dramatic in the last decade include all the following except:

A)tax reforms.
B)increased costs of health care and medical plans.
C)retirement and pension plans legislation.
D)changes in health care policies.
E)changes in minimum wage legislation.

Question 53

Forces that have encouraged the growth of indirect compensation benefits have included all the below except:

A)union demands.
B)social trends.
C)management wishes.
D)government action.
E)employee pressures.

Question 54

Cafeteria benefit programs are also known as:

A)flexible benefit programs.
B)optional benefit programs.
C)non-compulsory benefit programs.
D)lunchroom benefit programs.
E)benefit equity programs.

Question 55

Organizations cannot afford to treat employee benefits and services independent of direct compensation,especially since it is growing at:

A)Twice the pace of wages and salaries.
B)Three times the pace of wages and salaries.
C)Equal pace to wages and salaries.
D)Slower pace than wages and salaries.
E)A slow pace but is incredibly important issue to new employees.

Question 56

One recent addition to a flexible benefit program that is becoming more common is:

A)long-term disability.
B)life insurance.
C)the chance to buy and sell vacation time.
D)medical coverage.
E)pension plan.

Question 57

In order to keep ballooning health costs under control,one benefit consulting company (William M.Mercer)recommends that employers do all the following except:

A)ask staff to pay 20% of any treatment.
B)pay only for generic drugs where possible.
C)increase the time between dental checkups.
D)increase out-of-country medical coverage for personal travel only.
E)ask employees to buy "maintenance drugs" in larger amounts to save on dispensing fees.

Question 58

One serious compensation management problem in even otherwise well-run human resource departments has been the:

A)management of payroll.
B)management of government benefit plans.
C)management of indirect compensation.
D)management of direct compensation.
E)management of employee car pools.

Question 59

The objectives of a needs analysis to determine the proper approach to employee benefits administration is:

A)to find out what is best for the employees.
B)to identify the best way to meet both the short- and long-term needs of the employer.
C)to determine the needs of the human resource department.
D)to determine the best system for administering employee benefit plans.
E)to determine what the competition is doing.

Question 60

Traditional responses of human resource departments to the problem of employee lack of awareness,confusion,or disinterest in available benefit packages have included all of the following except:

A)employee handbooks.
B)allowing employees to select among benefits.
C)information mailouts.
D)information sessions.
E)company newsletters.

Question 61

Benefits can replace performance incentives as motivators.

Question 62

Employers have discovered that while indirect compensation packages may be desired by employees,they cause organizational problems such as increases in labour unrest,turnover,and overtime costs.

Question 63

Benefits and services are referred to as indirect compensation because they are not paid out directly in cash.

Question 64

GST applies to some employee benefits,but not to others.Exceptions can include:

A)parking.
B)tuition fees.
C)frequent flyer points.
D)car operating costs.
E)holiday trips within North America.

Question 65

Insurance,time off,income security,certain educational benefits are all considered as direct compensation.

Question 66

Pay is referred to as direct compensation because it is based on critical job factors or performance.

Question 67

Far more Canadians are now self-employed and do not collect weekly or monthly paycheques by working for someone else.

Question 68

Reasons that employees seek employer-provided benefits and services include lower costs and availability.

Question 69

Employee benefits and services seek to satisfy societal,organizational,and employee objectives.

Question 70

Since 1991,GST applies to some employee benefits,including all the below except:

A)tax-return preparation.
B)holiday trips within North America.
C)parking.
D)frequent flyer points.
E)gifts under $100.

Question 71

Legally required benefits and services are important to human resource departments because it is these departments that insure the organization is in compliance with the law.

Question 72

While benefits and services seek to satisfy employee objectives,they are not concerned with organizational objectives and generally serve little purpose for the employer.

Question 73

One reason why company insurance benefits are less expensive to an employee is that the employer often pays much or all of the costs.

Question 74

Benefits and services imposed on organizations by the government are called legally required benefits.

Question 75

Pay is referred to as direct compensation as it is paid in cash or appears as a direct deposit on a pay cheque.

Question 76

Reduced turnover,lower overtime costs,and more satisfied employees are all organizational objectives of indirect compensation.

Question 77

Benefits and services are called indirect compensation because they are extended as a condition of employment and are not directly performance-related.

Question 78

One reason indirect compensation is beneficial to employees is that it can lower their income taxes.

Question 79

A benefit audit enables employers to do all the following except:

A)determine what benefits employees want.
B)identify opportunities for savings.
C)identify who is in charge of the benefits budget.
D)exert control over the benefits area.
E)insure that insurers are doing a good job.

Question 80

Canadian companies spend,on average,50% of gross annual payroll on employee benefits.