Deck 10: Employee Benefits and Services

Question 1

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

Answer 1

True

Question 2

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

Answer 2

True

Question 3

The Canada Pension Plan,Employment Insurance,and Workers' Compensation Acts are all examples of legally required indirect compensation policies.

Answer 3

True

Question 4

It is important for human resource departments to realize that one difficulty with legally required employee benefits and services is that all legislation regarding worker financial security is federally administered.

Question 5

Benefit programs are an insignificant party of a company's compensation system.

Question 6

Employee benefits in Canada amount to,on average,about 68% of gross annual payroll.

Question 7

The growth of benefits since the Second World War means that the average employer spends more than forty percent of its payroll costs on benefits and services.

Question 8

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

Question 9

The Modernization of Benefits and Obligations Act (June 2000)ensures common-law relationships (BOTH same- and opposite-sex)are treated equally under federal law.

Question 10

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

Question 11

Tailor-made benefit packages are designed for employees in the fashion industry.

Question 12

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

Question 13

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

Question 14

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 15

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

Question 16

Minimum-wage acts ensure fair remuneration for workers.

Question 17

The program designed to alleviate monetary problems when people are in transition from one job to another is called Employment Insurance.

Question 18

Because BOTH the employer and the employee pay into the Canada Pension Plan,it is referred to as a voluntary benefit employment plan.

Question 19

In regards to the Canada Pension Plan,self-employed persons have a choice of paying either the employee's share or the employer's share,depending on their own situation.

Question 20

Portability clauses allow accumulated pension rights to be transferred to another employer when an employee changes jobs.

Question 21

In retirement planning,the term vesting means that once an employee is "vested" he or she will lose all rights to collect pension benefits should they leave the company before their official retirement date.

Question 22

To human resource specialists,employee's paid time-off is not considered to be a type of indirect compensation.

Question 23

Personal leave days allow an employee to skip work for any reason and get paid.

Question 24

An employer sponsored softball team and employee drug assistance program can BOTH be considered as part of an indirect compensation program.

Question 25

While employee assistance programs are legal for organizations to set up,specific drug (and alcohol)rehabilitation programs are still illegal in Canada unless federally supervised.

Question 26

Offering benefits to part-time workers is a trend which is increasing in practice.

Question 27

The new Employment Insurance Act that was fully implemented in 2001-2002 has been fundamentally restructured.

Question 28

Long-term disability insurance provides income to workers who are disabled for a prolonged period of time,usually at 50 or 60 percent of their working income.

Question 29

Unlike voluntary indirect compensation benefits such as insurance,there are non-insurance benefits which are intended to enhance employee security,usually by ensuring income over the long-term.

Question 30

With the increasing average age of the labour force,there will be an increased emphasis on pensions as part of the benefit package.

Question 31

The Pension Benefits Standards Act regulates pension plans for all companies in excess of 250 employees.

Question 32

Voluntary employee benefits can include employment insurance but not group life insurance.

Question 33

A defined contribution plan pays a benefit based on a formula made up of age and length or service.

Question 34

Union demands and management wishes have BOTH had an impact on the growth of voluntary benefit programs.

Question 35

One of the newest services available is employee discount plans,especially common in retail stores and consumer goods manufacturers.

Question 36

Job sharing is a trend which benefits BOTH the employer and employee.

Question 37

Holidays and minimum vacation lengths are regulated by BOTH the federal and provincial governments.

Question 38

All provincial Workers' Compensation Acts are of a type known as "collective liability."

Question 39

Canada's health and medical insurance is provided by the federal government with assistance from the provincial governments.

Question 40

Among the less traditional employee benefits some organizations provide are educational financial assistance.

Question 41

Due to its confidential nature,a benefit audit will NOT permit an employer to compare its employee claiming habits against other Canadian employers.

Question 42

One approach to identifying inefficiencies in the administration of a benefit plan is a benefit audit.

Question 43

One newer benefit to appear in cafeteria benefit plans is the ability to buy or sell vacation time.

Question 44

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 45

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 46

In compensation administration,pay is called:

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

Question 47

The following are all features of the new Employment Insurance Act (2001-2002)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 48

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
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 49

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 50

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 51

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 52

An approach that identifies inefficiencies in the administration of benefit plans is the ___________________.

A)benefit deficiency
B)benefit audit
C)defective assessment
D)organizational claim audit
E)efficiency audit

Question 53

Some organizations offer more than pay and traditional benefits.Which of the following is an example of this type of benefit?

A)educational assistance
B)employee discounts
C)employee assistance programs
D)relocation programs
E)all of the choices

Question 54

Another term for voluntary indirect compensation programs are cafeteria benefit programs.

Question 55

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 56

A needs analysis consists of answering five questions,the first of which is "What tasks need to be performed,how often,and how quickly?"

Question 57

Comparing the company's benefits with those of the competition is one step a company can take to ensure it meets its long-term objectives.

Question 58

When workers are provided with a benefit account with a certain amount of money in it,and with a list of available benefits and services to select from,this is referred to as a(n)__________________program.

A)option benefit
B)selective benefit
C)blended benefit
D)cafeteria (or flexible)benefit
E)equity benefit

Question 59

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)private trust company formed solely of employees and the employer
E)a trust in Canada whose trustees are specifically defined

Question 60

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 61

With workers' compensation,the concept of collective liability means that compensation is paid collectively by __________.

A)the provincial government
B)the federal government
C)partially by the employee
D)employers
E)all of the choices

Question 62

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 overcome personal and work-related problems
C)seeks to assist employees with personal problems going on outside of the workplace but are having a negative effect on their productivity in the workplace
D)all of the choices
E)seeks to assist employees with family disputes

Question 63

GST/HST applies to some employee benefits,but not to others.Generally,GST/HST does not have to be paid on:

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

Question 64

Pension rights under the Canada Pension Plan are __________,meaning that they are not affected by changes of job or residence.

A)non-portable
B)voluntary
C)portable
D)contributory
E)not available to federal government employees

Question 65

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 66

A benefit audit enables employers to do which of the following?

A)all of the choices
B)identify opportunities for savings
C)identify who is in charge of the benefits budget
D)exert control over the benefits area
E)ensure that insurers are doing a good job

Question 67

A serious shortcoming of human resource management has been __________ of indirect compensation.

A)outsourcing management
B)job sharing
C)poor management
D)improper management
E)unauthorized management

Question 68

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.

Question 69

Indirect compensation can benefit employers by __________ turnover and __________ overtime costs.

A)eliminating;reducing
B)increasing;balancing
C)reducing;increasing
D)reducing;minimizing
E)eliminating;eliminating

Question 70

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 71

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 employee's medical coverage
D)greater employee clarity about what benefits are offered
E)less involvement by the human resource department

Question 72

An employer program that would assist an employee's job-related move is called a(n)__________ program.

A)relocation
B)inter-provincial transfer
C)retention
D)mileage-reduction
E)telecommuting

Question 73

A traditional remedy to benefit problems associated with voluntary benefit and service programs has been to increase employee:

A)maternity leave benefits
B)vacation time
C)pension contributions
D)payroll deductions
E)awareness

Question 74

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 75

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 mail outs
D)information sessions
E)company newsletters

Question 76

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 77

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 78

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 79

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 coordinated objectives
D)management has usually avoided any coordinated organization of these to prevent making them official
E)human resource departments set too complex and detailed systematic plans and standards

Question 80

Legally required benefits and services are imposed upon organizations by the:

A)parent company
B)government
C)mayor of the respective city
D)senior management team
E)benefits and services cannot be a legal requirement