Deck 10: Compensation: Benefits

Question 1

Although the majority of the benefits employers offer are voluntary, many are regulated by federal and/or state authorities.

Answer 1

True

Question 2

Large employer status determines whether a business has to provide health insurance.

Answer 2

True

Question 3

By the early 1970s, the majority of employees felt they were entitled to receive benefits as part of the employment relationship.

Answer 3

True

Question 4

Around the turn of the twentieth century, some employers provided benefit packages as a pragmatic means of keeping employees from organizing unions.

Question 5

Employee benefits programs meet the needs of the employee; however, they are not viewed as meeting the needs of employers as well.

Question 6

The employer's unemployment insurance premiums are based on the number of unemployment claims filed against it.

Question 7

The FLMA grants employers the freedom to determine what constitutes a "serious health condition."

Question 8

Parental leave can be taken intermittently, as long as it is taken in the first year of the child's life.

Question 9

An employer with 40 full-time employees and 15 part-time employees (who only work 20 hours per week) is not classed as a large employer under the Act.

Question 10

A person could feasibly draw disability pay and unemployment compensation at the same time.

Question 11

USERRA does not protect the employment benefits of members of the National Guard, but it does protect the U.S.Army Reserve and U.S.Air Force Reserve.

Question 12

The most significant change affecting employers under the Affordable Care Act are the penalties for disclosure of employee medical information..

Question 13

ERISA and HIPAA are amendments to COBRA's provisions.

Question 14

Employers are authorized to require employees to substitute any accrued paid vacation or personal leave for leave requested under the FMLA.

Question 15

An employee is automatically eligible for unemployment compensation upon termination.

Question 16

Any FMLA leave used to care for seriously ill family members can be taken intermittently.

Question 17

Independent contractors are not employees and are, therefore, not entitled to benefits that are available to employees of a specific employer.

Question 18

The federal government is included as a covered employer under the FMLA, as well as state and local governments.

Question 19

The spouse and minor children of an employee are entitled to continued health coverage under COBRA in the event of the death of the employee.

Question 20

No statute or regulation is violated if an employer decides not to pay anyone unemployment compensation.

Question 21

If an employer were to terminate health benefits as a result of one of the events below, which of the following would not be justified under COBRA?

A)The covered individual fails to pay premiums on time.
B)The employer no longer offers group health coverage to employees.
C)The employee is terminated because of documented insubordination.
D)An employee gets divorced, so the company immediately drops the health insurance for his ex-wife and minor children.

Question 22

Private sector employers must comply with the FMLA when they employ ____ or more employees for at least twenty work weeks in the current or previous year.

A)25
B)50
C)75
D)100

Question 23

The first federally mandated employee benefits emerged with the passage of the Social Security Act of _____.

A)1935
B)1946
C)1957
D)1968

Question 24

To be eligible for FMLA coverage, an employee must have worked for an employer for a minimum of:

A)1 month
B)90 days
C)6 months
D)12 months

Question 25

Which is not a mandatory benefit?

A)family and medical leave
B)Social Security
C)unemployment compensation
D)paid sick leave

Question 26

An employee could not take FMLA to care for which of the following people with serious health conditions?

A)foster child
B)father
C)mother-in-law
D)state-recognized common law husband

Question 27

Which is a voluntary benefit?

A)workers' compensation
B)unemployment compensation
C)retirement program
D)Social Security

Question 28

Which of the following would be classed as a large employer under the Patient Protection and Affordable Care Act?

A)An employer with 50 full-time employees
B)An employer with 25 full-time employees and 25 part-time employees working 29 hours per week
C)An employer with 15 full-time employees and 25 part-time employees working 29 hours per week
D)A & B

Question 29

To receive unemployment compensation, the terminated employee must meet ____ conditions.

A)three
B)five
C)seven
D)ten

Question 30

A concept by which employers voluntarily and intentionally improved the living conditions of employees through various supplements to direct money pay.

A)fringe benefits
B)welfare capitalism
C)health insurance
D)pension plans

Question 31

Which of the following would most likely not be classified as a serious health condition under the FMLA?

A)broken bone
B)chronic illness, like diabetes
C)surgery with hospital stay
D)24 hour stomach virus

Question 32

If a man and woman work for the same company and have a newborn baby, who would qualify for FMLA coverage?

A)the mother only
B)the father only
C)either the mother or the father could take leave
D)both the mother and father could take twelve weeks each

Question 33

The FMLA requires that employees give employers at least ____ notice when the reason for the leave is foreseeable.

A)a one week
B)ten days'
C)thirty days'
D)sixty days'

Question 34

If an individual is laid off by a covered employer, that individual is entitled to receive unemployment compensation for up to ____ weeks.

A)23
B)24
C)25
D)26

Question 35

What is the tax penalty for each employee offered health coverage which does not conform the Department of Health and Human Services' definition of affordable?

A)$2,000
B)$2,000 for each employee less the first 30 full-time employees.
C)$3,000
D)$3,000 for each employee less the first 30 full-time employees.

Question 36

Employees who are protected under the USERRA are entitled a maximum of _____ COBRA coverage.

A)one year
B)two years
C)three years
D)four years

Question 37

Unemployment compensation programs are administered by:

A)individual states
B)Congress
C)the EEOC
D)unions

Question 38

In all states, ____________ are not entitled to draw unemployment compensation under the Social Security Act.

A)police officers
B)firefighters
C)railroad workers
D)construction workers

Question 39

Once an employer implements a group health insurance program for employees, that program is subject to ____________.

A)federal regulation
B)internal regulation only
C)state regulation only
D)no regulation

Question 40

Walter is the only applicant hired by XYZ Corporation in January.Prior to Bill's hiring the employer had 100 employees.In April, Frank and Ashley are hired.No other applicants are hired and no current employees are terminated for the remainder of the year.If XYZ offers no health insurance, what is the annul tax for the employer?

A)$206,000
B)$145,000
C)$146,000
D)$144,000

Question 41

A retirement plan in which the employer develops a program that identifies how much a retiring employee will receive each month for the remainder of his or her life.

A)payout plan
B)individual account plan
C)defined benefit plan
D)defined contribution plan

Question 42

______ is a person who is placed in a position of trust and confidence to exercise a standard of care in the administration or management of an activity.

A)fiduciary
B)successor employer
C)joint employer
D)independent contractor

Question 43

What is vesting? What are the basic provisions for vesting under ERISA?

Question 44

Under COBRA, explain the four qualifying events, the beneficiaries of the events, and the length of coverage for the events.

Question 45

Which of the following should be included in a summary plan description under ERISA?

A)The names and addresses of the plan administrator and trustee
B)The plan's requirements respecting eligibility for participation and benefit.
C)The description of the provisions providing for nonforfeitable pension benefits.
D)All of the above

Question 46

Who is an employer under the Family Medical Leave Act (FMLA)? What conditions must an employee meet in order to be eligible for FMLA benefits? What are the FMLA benefits?

Question 47

Independent contractors are responsible for their own:

A)withholding FICA taxes
B)withholding their own federal income taxes
C)benefits
D)All of the above

Question 48

______ was enacted in 1994 for the express purpose of protecting the civilian jobs and employment benefits of veterans and members of reserve armed forces components when called to active duty.

A)USERRA
B)EEOC
C)HIPAA
D)None of the Above

Question 49

The _______ was enacted to protect older workers from discrimination in benefits based on age.

A)COBRA
B)ERISA
C)OWBPA
D)HIPAA

Question 50

The most comprehensive (all encompassing) employee benefit regulation statute.

A)COBRA
B)ERISA
C)HIPAA
D)OWBPA

Question 51

Which is not one of the four major provisions of ERISA?

A)protection against age discrimination
B)vesting rights
C)termination insurance
D)fiduciary standards

Question 52

Who is a covered employer under the Affordable Care Act and what is the penalty that a covered employer will experience for not providing group health insurance for his or her employees after January 1, 2015? (2 points) What is the penalty that a covered employer will experience for providing group health insurance for his or her employees that does not meet minimum federal standards, after January 1, 2015? To which federal agency must an employer report information pertaining to his or her benefit programs?

Question 53

_____ means an individual has a nonforfeitable right to pension benefits.

A)fiduciary
B)vesting
C)waivers
D)defined contribution plan

Question 54

Under ERISA, one method for becoming vested gives employers the option of allowing employees to become 100 percent vested after ____ years of service.

A)three
B)five
C)seven
D)ten

Question 55

In January 2015, an employer has 45 full-time employees and 15 part-time employees.The part-time employees work an average of 20 hours per week.She offers no health insurance benefits to her employees.If his work force remains stable through out the year, what would be her tax penalty under the Affordable Care Act? What would it be if she reduced all full-time employees to part-time status in July?
a.First calculate fulltime employees and FTEs to determine if she is a large employer under the ACA: 15 part-time employees × 20 hours = 300 hours /30 = 10 FTEs
• 45 Full-time + 10 FTEs = 55 which is above the 50 Full-time/FTE threshold.
• The employer is a large employer under the ACA.
b.The penalty is calculated using only full-time employees (less 30): ((45 - 30)($2,000))/12 = $2500.
• If the work force is stable for the entire year then the annual penalty will be $30,000 ($2500 × 12).
c.What if she reduces all 45 full-time employees to part-time in July? First calculate fulltime employees and FTEs to determine if she is still a large employer under the ACA: 55 part-time employees × 20 hours = 1100 hours /30 = 36.67 FTEs
• 55 FTEs = 36.67 which is below the 50 Full-time/FTE threshold, hence after July 2015 she is no longer a large employer.However, she is still responsible for the period before July when she was:
((45 - 30)($2,000))/12 = $2500.At the end of 2015 she will be responsible for $15,000 in tax penalties ($2500 × 6).