Question 1

What will be the retirement age in 2027 to receive Social Security retirement benefits?

Accepted Answer

C)The retirement age today is 66 for receiving Social Security retirement benefits.The age for receiving full Social Security benefits (that is,retirement age)has been increased slowly until it reaches 67 in 2022.These changes will not affect Medicare,with full eligibility under this program holding at age 65.

Question 2

Unemployment insurance provides workers whose jobs have been terminated through no fault of their own,monetary payments for up to 26 weeks.

Accepted Answer

Unemployment insurance provides workers whose jobs have been terminated through no fault of their own monetary payments for up to 26 weeks or until they find a new job.The intent of unemployment payments is to provide an unemployed worker time to find a new job equivalent to the one lost without suffering financial distress.

Question 3

Workers' compensation insurance pays for medical expenses related to ________.

Accepted Answer

D)Workers' compensation benefits provide a degree of financial protection for employees who incur expenses resulting from job-related accidents or illnesses.Workers' compensation would not likely cover pre-existing conditions unless they were job-related.

Question 4

Legally required benefits represents a form of ________.

Accepted Answer

A)Legally required benefits historically provided a form of social insurance.Prompted largely by the rapid growth of industrialization in the United States in the early 19th and 20th centuries and the Great Depression of the 1930s,initial social insurance programs were designed to minimize the possibility that individuals who became unemployed or severely injured while working would become destitute.In addition,social insurance programs aimed to stabilize the well-being of dependent family members of injured or unemployed individuals.Furthermore,early social insurance programs were designed to enable retirees to maintain subsistence income levels.These intents of legally required benefits remain intact today.

Question 5

Which of the following is the LEAST likely purpose of unemployment insurance payments?

Accepted Answer

C)The intent of unemployment payments is to provide an unemployed worker time to find a new job equivalent to the one lost without suffering financial distress.Without this benefit,workers might have to take jobs for which they are overqualified or end up on welfare.Unemployment compensation also serves to sustain consumer spending during periods of economic adjustment.COBRA extends healthcare coverage to unemployed workers,not unemployment insurance.

Question 6

Jack,a construction worker,slipped and fell at a job site.As a result,Jack injured his knee and needs physical therapy and medical care.Jack's medical expenses would most likely be covered by ________.

Accepted Answer

A)Workers' compensation benefits provide a degree of financial protection for employees who incur expenses resulting from job-related accidents or illnesses.Unemployment insurance,life insurance,and Medicaid would not cover Jack's expenses for a work-related injury.

Question 7

Jackie's employer is downsizing to reduce expenses,and Jackie has been informed that she will be laid off.What is the maximum number of weeks that Jackie can receive unemployment compensation?

Accepted Answer

B)Unemployment insurance provides workers whose jobs have been terminated through no fault of their own,monetary payments for up to 26 weeks or until they find a new job.The intent of unemployment payments is to provide an unemployed worker time to find a new job equivalent to the one lost without suffering financial distress.

Question 8

Disability insurance,survivors' benefits,Medicare,and unemployment insurance are provided by and administered by the Social Security Administration.

Accepted Answer

The Social Security Administration oversees disability insurance,survivors' benefits,and Medicare.Unemployment insurance is based on both federal and state statutes and,although the federal government provides guidelines,the programs are administered by the states rather than the SSA.

Question 9

Which of the following laws requires that employers and employees pay equally for Social Security retirement benefits?

Accepted Answer

B)The Federal Insurance Contribution Act (FICA)requires that employees and employers pay a portion of the cost of OASDI and Medicare coverage.Both the employer and employee each pay 6.2 percent of an employee's pay for the Social Security portion and 1.45 percent for Medicare.These amounts are deducted from an employee's paycheck and usually appear as FICA and Medicare (or HI for hospital insurance).Self-employed individuals pay the entire amount (15.3 percent).The Federal Unemployment Tax Act applies to the requirement that employers contribute to the Social Security unemployment insurance program on behalf of their employees.The Pension Protection Act and Employee Retirement Income Security Act apply to discretionary retirement programs such as 401(k)plans and pension plans.

Question 10

Margaret's husband,who worked as an accountant,recently died from a heart attack while on vacation.Which of the following would most likely be provided to Margaret?

Accepted Answer

A)Survivors' benefits are provided to certain members of an employee's family when the employee dies.Life insurance is a discretionary benefit.Unemployment insurance provides workers whose jobs have been terminated through no fault of their own.Medicaid payments provide health insurance for low-income individuals.

Question 11

Which of the following would most likely be eligible for Medicare?

Accepted Answer

C)Medicare provides hospital and medical insurance protection for individuals 65 years of age and older and for those who have become disabled.Therefore,Charles would most likely be eligible,while the others would not.

Question 12

Employers pay the Federal Unemployment Tax at a rate of 6.2 percent on the first ________ each employee earns.

Accepted Answer

C)Employers pay the Federal Unemployment Tax at a rate of 6.2 percent on the first $7,000 each employee earns.If they pay it on time,the percent is offset by 5.8 percent so the actual rate is .8 percent.

Question 13

Which of the following provides hospital and medical insurance protection for individuals who are 65 years of age or older?

Accepted Answer

A)Medicare provides hospital and medical insurance protection for individuals 65 years of age and older and for those who have become disabled.HMOs and PPOs are managed health care plans provided by employers.Medicaid provides assistance to low-income individuals.

Question 14

Individual states administer both unemployment insurance and workers' compensation benefits.

Accepted Answer

As with unemployment compensation,the various states administer individual programs,with oversight from the U.S.Department of Labor.

Question 15

Which term refers to a benefit plan established by employers that allows employees to deposit a certain portion of their pre-tax salary into an account to be used for eligible expenses?

Accepted Answer

C)A flexible spending account (FSA)is a health benefit plan established by employers that allows employees to deposit a certain portion of their salary into an account (before paying income taxes)to be used for eligible expenses.Health savings accounts (HSA)are tax-free health spending and savings accounts available to individuals and families who have qualified high-deductible health insurance policies as determined by IRS regulations.Cash balance plans and defined benefit plans are two types of retirement plans.

Question 16

Legally required benefits became more popular in the 1940s and 1950s.

Accepted Answer

Legally required benefits historically provided a form of social insurance.Prompted largely by the rapid growth of industrialization in the United States in the early 19th and 20th centuries and the Great Depression of the 1930s,initial social insurance programs were designed to minimize the possibility that individuals who became unemployed or severely injured while working would become destitute.In addition,social insurance programs aimed to stabilize the well-being of dependent family members of injured or unemployed individuals.Furthermore,early social insurance programs were designed to enable retirees to maintain subsistence income levels.These intents of legally required benefits remain intact today.Discretionary benefits took hold during the 1940s and 1950s because the government imposed a wage freeze,but did not place restrictions on employee benefits.

Question 17

What is a significant issue facing the Social Security program?

Accepted Answer

B)The Social Security program currently is running a surplus,but the retirement of the 77-million-member baby-boom generation is looming.Unless Congress makes changes by 2033,the program will have used up its surplus and will no longer be able to pay full benefits.Outsourcing,unemployment,and workers' compensation are less relevant to Social Security.

Question 18

Which of the following pays for unemployment insurance?

Accepted Answer

D)A payroll tax paid solely by employers funds the unemployment compensation program under the Federal Unemployment Tax Act (FUTA).Unemployment insurance is based on both federal and state statutes and,although the federal government provides guidelines,the programs are administered by the states and therefore benefits vary by state.

Question 19

The Social Security Act of 1935 created a system of retirement benefits.

Accepted Answer

The Social Security Act of 1935 created a system of retirement benefits.It also established the Social Security Administration.

Question 20

In a short essay,describe the reasons the U.S.government established particular legally required benefits.

Accepted Answer

The answer of In a short essay,describe the reasons the...

Quiz 10: Indirect Financial Compensation Employee Benefits: