Question 1

Studies indicate that employee assistance programs most frequently provide help with personal mental health issues and family problems.

Accepted Answer

EAPs are increasingly popular, with more than 60% of larger firms offering such programs. One study found that personal mental health was the most common problem addressed by employee assistance programs, followed by family problems.

Question 2

Stephanie has opted to work from 7 am to 3 pm so that she can be home when her son finishes school in the afternoons. Her company must offer ________ for Stephanie to have this option.

Accepted Answer

B)Flextime is a work schedule in which employees' workdays are built around a core of midday hours, and employees determine, within limits, what other hours they will work. A compressed workweek involves working fewer but longer days each week.

Question 3

A primary benefit of 401(k)plans is that payments made by employees into the plan are pretax, so the employee pays no tax on those dollars until after he or she retires or withdraws the money.

Accepted Answer

Payroll deductions for 401(k)plans are pretax, so the employee pays no tax on those dollars until after he or she retires (or removes the money from the 401(k)plan).

Question 4

What are the three types of benefits provided by Social Security?

Accepted Answer

The answer of What are the three types of benefits...

Question 5

Which of the following is an example of a compressed workweek?

Accepted Answer

B)A compressed workweek involves working fewer but longer days each week, so working four 10-hour days is an example of a compressed workweek.

Question 6

The Pension Benefits Guarantee Corporation guarantees both defined benefit plans and defined contribution plans.

Accepted Answer

ERISA established the Pension Benefits Guarantee Corporation (PBGC)to oversee and insure a pension if a plan terminates without sufficient funds. The PBGC guarantees only defined benefit plans, not defined contribution plans.

Question 7

Portability makes it easy for employees who leave one firm to work for another firm to take their accumulated pension funds with them.

Accepted Answer

Portability-making it easier for employees who leave the firm prior to retirement to take their accumulated pension funds with them-is enhanced by switching from defined benefit to defined contribution plans.

Question 8

Orion is a business software firm based in Atlanta that employs over 400 people. Orion has traditionally provided legislatively required benefits for its employees including Social Security, workers' compensation, and unemployment insurance. In addition, Orion offers employees health and dental insurance. Orion employees work Monday through Friday on a 9 to 5 schedule. Orion's top executives are considering the idea of adding a flexible benefits plan and implementing a flexible work schedule. Which of the following, if true, undermines the argument that Orion should offer its employees a cafeteria plan?

Accepted Answer

A)If Orion's employees are satisfied with the type of benefits offered by the firm, then there is no need to change to a cafeteria plan. Cafeteria plans are useful when employees want more choice and variety in their benefits. Workers' compensation, retirement savings, and employee leasing are irrelevant issues.

Question 9

Which of the following benefits is NOT classified as a type of family-friendly benefit?

Accepted Answer

A)Family-friendly benefits include subsidized child care, elder care, and on-site fitness facilities. Sick leave is useful when a child is ill; however, sick leave is a standard aspect of a job and not necessarily family-friendly.

Question 10

Firms that subsidize day care centers are hoping to recruit employees, reduce absenteeism, decrease turnover, and improve morale.

Accepted Answer

By establishing subsidized day care, employers assumedly can benefit in several ways. These include improved recruiting results, lower absenteeism, improved morale, favorable publicity, and lower turnover.

Question 11

________ provide services like financial counseling, child care referrals, elder care referrals, adoption assistance, mental health counseling, and life event planning.

Accepted Answer

B)Employee assistance programs (EAPs)provide counseling and advisory services, such as personal legal and financial services, child and elder care referrals, adoption assistance, mental health counseling, and life event planning. EAPs are increasingly popular, with more than 60% of larger firms offering such programs.

Question 12

Which term refers to individualized plans allowed by employers to accommodate employee preferences for benefits?

Accepted Answer

B)A cafeteria plan is one in which the employer gives each employee a benefits fund budget, and lets the person spend it on the benefits he or she prefers.

Question 13

Orion is a business software firm based in Atlanta that employs over 400 people. Orion has traditionally provided legislatively required benefits for its employees including Social Security, workers' compensation, and unemployment insurance. In addition, Orion offers employees health and dental insurance. Orion employees work Monday through Friday on a 9 to 5 schedule. Orion's top executives are considering the idea of adding a flexible benefits plan and implementing a flexible work schedule. Which of the following, if true, best supports the argument that Orion should offer its employees a cafeteria benefits plan?

Accepted Answer

B)Cafeteria plans enable employees to choose the benefits they need. If some workers want vision while others want dental, then a cafeteria plan would be appropriate. Joining an insurance pool, PPO/HMO plans, and outsourcing benefits administration are not relevant.

Question 14

When employers offer domestic partner benefits to employees, it means that employees' same-sex domestic partners are eligible to receive the same benefits as do the husband, wife, or legal dependent of one of the firm's employees.

Accepted Answer

When employers provide domestic partner benefits to employees, it generally means that employees' same-sex or opposite-sex domestic partners are eligible to receive the same benefits (health care, life insurance, and so forth)as do the husband, wife, or legal dependent of one of the firm's employees.

Question 15

What are vested funds? What is the difference between cliff vesting and graded vesting?

Accepted Answer

The answer of What are vested funds? What is the...

Question 16

There is no limit to the amount an employee can contribute pre-tax into a 401(k)plan each year.

Accepted Answer

Employees deduct any amount up to the legal maximum. The IRS sets an annual dollar limit, which is currently about $15,000.

Question 17

Why are family-friendly benefits increasingly popular? Provide examples of family-friendly benefits.

Accepted Answer

The answer of Why are family-friendly benefits increasingly popular? Provide...

Question 18

What are the key steps for launching a successful EAP program? Should firms offer EAPs? Why or why not?

Accepted Answer

The answer of What are the key steps for launching...

Question 19

Which of the following best explains why many businesses use employee leasing firms?

Accepted Answer

C)Employee leasing firms (also called professional employer organizations or staff leasing firms)assume all or most of the employer's human resources chores. Insurance and benefits are usually the big attraction. Getting health and other insurance is a problem for smaller firms, and leasing firms enable them to join a larger pool.

Question 20

________ seek(s)to enable employees to balance their job and family responsibilities.

Accepted Answer

C)Family-friendly or work-life benefits such as child care and fitness facilities are attempts by firms to help employees balance work and family responsibilities.

Quiz 13: Benefits and Services