Question 1

What is characteristic of benefits required by the Social Security Act?

Accepted Answer

The Social Security Act provides benefits based on a worker's past earnings and retirement age. The amount of the benefit increases with the worker's earnings and decreases as the worker's retirement age approaches. The cost of the program is shared by both workers and employers through payroll taxes. The program also provides benefits for disabled workers and their families, as well as survivors' benefits for the families of deceased workers.

Question 2

Which benefits provided by the employer is required by law in the United States?

Accepted Answer

The only benefit required by law in the United States is Social Security contributions, which go towards funding retirement, disability, and survivor benefits for eligible workers and their families. While employers may choose to offer other benefits like paid vacation, personal leave, flextime, and retirement savings plans, they are not mandated by law.

Question 3

As Monty Corp., a shoe manufacturer, grows more profitable, it wants to become more competitive as an employer in the labor market. Juliet, the human resource manager, urges the company to develop a more attractive package of benefits, rather than simply raising salaries. Which statement best supports Juliet's argument?

Accepted Answer

Employees do not pay income taxes on most benefits they receive, making benefits a tax-efficient form of compensation.

Question 4

In the United States, what is the legal requirement for giving employees paid vacation?

Accepted Answer

There is no legal requirement for employers to give employees paid vacation in the United States. Employers decide on their own policies for paid time off.

Question 5

Eleanor, who is pregnant, works for an organization with more than 100 employees. She lives 20 miles away from work. By federal law, she is entitled to ________ of unpaid leave after her child is born.

Accepted Answer

According to the Family and Medical Leave Act (FMLA), employees who work for an organization with more than 100 employees are entitled to take up to 12 weeks of unpaid leave after the birth or adoption of a child. Therefore, the correct answer is C, 12 weeks.

Question 6

Under the Family and Medical Leave Act, which criteria makes employees eligible to take unpaid family leave?

Accepted Answer

The correct criteria for employees to be eligible to take unpaid family leave under the Family and Medical Leave Act is that they should be working for an organization with 50 or more employees within a 75-mile radius. The other options listed (B, C, D, and E) are not requirements for eligibility under the Act.

Question 7

Sick leave programs

Accepted Answer

Sick leave programs are designed to compensate employees for days they miss due to illness. They are not mandatory, and employers are not required by law to offer paid sick leave. The other options are not accurate.

Question 8

What is a similarity between unemployment insurance benefits and workers' compensation benefits?

Accepted Answer

Both unemployment insurance benefits and workers' compensation benefits' costs depend on the organization's experience ratings. Unemployment insurance benefits depend on how many employees a company has laid off in the past and workers' compensation benefits depend on how many workplace injuries or illnesses the employees have experienced in the past.

Question 9

Chad finds that he meets the eligibility requirements for Social Security. He elects to receive retirement benefits at 62. Which statement is true?

Accepted Answer

Electing to receive retirement benefits at 62 means Chad will receive benefits at a permanently reduced level. The full retirement age for Social Security benefits is typically between 66 and 67, depending on the year of birth. By electing to receive benefits at 62, Chad is choosing to receive benefits before reaching full retirement age, resulting in a reduction of his benefits.

Question 10

In which situation do workers become eligible for unemployment benefits?

Accepted Answer

Unemployment benefits are typically available to individuals who are out of work through no fault of their own and are actively seeking employment. This means they must be ready, willing, and able to work, and actively looking for work to be eligible for benefits.

Question 11

Chandler is the owner of a restaurant called KC Kitchen. He decides to increase employee motivation by introducing benefit packages. However, Alivia, the manager, suggests that employees will be more motivated if Chandler increases their actual wages. Which statement, if true, strengthens Alivia's argument?

Accepted Answer

Benefit packages being more difficult to understand than pay structures strengthens Alivia's argument by suggesting that simpler, direct wage increases might be more motivating for employees than complex benefits.

Question 12

On average, out of every dollar spent by a company on employee compensation, more than ________ cents goes to employee benefits.

Accepted Answer

On average, more than 30 cents of every dollar spent by a company on employee compensation goes towards employee benefits. This reflects the significant portion of compensation that is dedicated to benefits such as health insurance, retirement plans, and paid leave, among others.

Question 13

Which act requires companies with more 50 full-time employees to provide health insurance or face a penalty?

Accepted Answer

The Patient Protection and Affordable Care Act (also known as Obamacare) requires companies with more than 50 full-time employees to provide health insurance or face a penalty.

Question 14

What is a true of unemployment insurance?

Accepted Answer

Unfavorable experience ratings of employers lead to higher premiums. Employers are responsible for paying into the unemployment insurance system, and the rates they pay can be influenced by their history of layoffs and claims filed by former employees.

Question 15

In the U.S., the amount of sick leave given to employees is often based on

Accepted Answer

In the U.S., sick leave is often based on an employee's length of service, meaning the longer an employee has been with the company, the more sick leave they are typically allotted.

Question 16

What is an advantage of providing benefits instead of cash compensation?

Accepted Answer

Employers can assemble creative benefits packages that give them a competitive advantage. Providing benefits can differentiate a company from its competitors and attract and retain employees. Cash compensation, on the other hand, is more standardized and can be easily compared between companies. Creative benefits packages can include things like flexible scheduling, telecommuting options, gym memberships, and professional development opportunities, which can appeal to a wide range of employees.

Question 17

Fred, the vice president of Gallway Co., plans to introduce a retirement plan for all employees. Ron, the operations director, disagrees because the proposed plan would increase the company's costs. Which statement, if true, strengthens Fred's argument?

Accepted Answer

Statement A strengthens Fred's argument by suggesting that offering common benefits, such as retirement plans, meets employee expectations, which can be important for attracting and retaining talent, despite the increased costs mentioned by Ron.

Question 18

Two management students, Gunther and Jake, discuss the pros and cons of employee benefits. Gunther states that unemployment insurance is more advantageous to employees than it is to employers, while Jake argues that employers receive more rewards from it. Which statement weakens Jake's argument?

Accepted Answer

The statement that federal and state taxes paid by employers fund most of unemployment insurance weakens Jake's argument that employers receive more rewards from it. It shows that the cost of unemployment insurance is primarily borne by employers and not the government, contradicting his argument.

Question 19

Toby is an engineer at a paint manufacturing company. However, a chemical spill at the factory caused an accident that left him permanently disabled. Which program is specifically designed to help employees like Toby?

Accepted Answer

Social Security provides disability benefits to workers who have paid into the program and meet certain eligibility criteria, making it the program specifically designed to help employees like Toby who are permanently disabled due to an accident. The other choices listed are related to retirement plans and work-sharing arrangements, and do not provide disability benefits.

Question 20

Yang, the HR manager at a start-up company, helped the founder plan a benefits package that includes paid vacations, holidays, and sick leave. Now an employee approaches Yang to say she has been called up for jury duty and needs to be away next week. What should Yang do?

Accepted Answer

The best choice is to establish and apply policies for other situations requiring time off. This is because taking time off for jury duty is a legal requirement and is protected by law. Therefore, it is not appropriate to direct the employee to use the Family and Medical Leave Act, forbid them from taking time off, or ask them to use sick leave or vacation time. By establishing policies for other situations requiring time off, the HR manager can ensure that employees are treated fairly and consistently regardless of the reason for the time off.

Quiz 14: Providing Employee Benefits