Deck 11: Employee Benefits

Question 1

Although some government programs provide money to people with partial disabilities or short-term disabilities, Social Security does not.

Answer 1

True

Question 2

TynsCorp is considering introducing a number of new benefits as a way to retain employees. Before introducing these benefits, or even investing too much effort in preparing the packages, TynsCorp should consult with its employees to determine if there is a need for them.

Answer 2

True

Question 3

TynsCorp just laid off a number of employees. They are eligible for 52 weeks of unemployment insurance.

Answer 3

False

Question 4

The Social Security program is funded by a tax paid by an employer, based on an employee's earnings.

Question 5

TynsCorp misled its employees about certain health benefits that were available in their plan. TynsCorp included the benefits as a way to attract new recruits in key positions while limiting the total number of employees who actually tried to use the benefit as a way to keep costs lower. The employees can sue TynsCorp under ERISA.

Question 6

TynsCorp contracted with compensation specialists to make recommendations on how to improve its benefits packages. It is likely that those specialists will suggest flexible benefits plans, as those tend to be seen as ideal.

Question 7

TynsCorp wants to offer a benefits plan that will accommodate the individual needs of its employees. TynsCorp should consider implementing a cafeteria plan.

Question 8

When communicating benefits packages to employees, using a uniform method or technique is recommended for consistency, so that everyone hears the same message in the same way.

Question 9

There has been a reduction in the number of single-parent families and two-earner couples in the workplace than there have been in the decades past.

Question 10

The Social Security Act was designed to protect workers against the loss of earnings resulting from old age and unemployment.

Question 11

A basic benefits package that is typically offered to employees usually includes life and health insurance, sick leave, and vacation.

Question 12

Since it is essentially retirement insurance, in order to qualify for Social Security benefits, individuals must be at least 65 years of age.

Question 13

To be eligible for Social Security disability benefits, an individual's disability must be expected to last for at least one year or to result in death.

Question 14

It is worthwhile for employers to offer attractive benefit packages, because surveys show that employees who are satisfied with their benefits are more likely to be satisfied with their jobs.

Question 15

Millennial employees are less likely to be concerned with having pensions than Baby Boomers.

Question 16

TynsCorp encourages its employees to eat properly and to exercise. To promote these goals, TynsCorp offers healthy cooking classes and discounted memberships to area fitness centers. This is an example of a wellness program.

Question 17

An advantage of flexible benefit plans is that if employees make poor selections and do not use their benefits, it saves the employer money.

Question 18

Benefits generally account for approximately 14 percent of payroll costs.

Question 19

Employers are tailoring their benefits programs to be family-friendly, because employees desire more work-life balance.

Question 20

Generally speaking, a firm with a record of laying off large numbers of employees will have to pay a lower payroll tax rate than those that do not.

Question 21

Employee costs for medical services provided by a health maintenance organization (HMO) vary according to the type of service and how often the employee needs it.

Question 22

A preferred provider organization (PPO) is a group of physicians who establish an organization that guarantees the quality of health care provided by a health maintenance organization (HMO).

Question 23

One advantage to health reimbursement accounts is that employees do not have to pay taxes on the amounts they are reimbursed under an HRA.

Question 24

To contain health care costs, an employer may increase an employee's deductible amount or co-payments.

Question 25

Beth and Jon both work at TynsCorp. Beth just gave birth to a baby, while Jon and his wife just adopted a child. Under the Family and Medical Leave Act, Beth is eligible for 12 workweeks of unpaid leave, but Jon is not.

Question 26

Jolee's company provides health coverage to its employees through a PPO. While the costs are somewhat lower, one disadvantage, especially when compared to HMOs, is that employees have little choice in the doctor they see.

Question 27

Peter was recently laid off from his job. He was looking forward to some "paid vacation" as he collects unemployment benefits for staying home. But then he learned that in order to be eligible for benefits, he has to submit an application for unemployment compensation with the state employment agency, register for available work, and be willing to accept any suitable employment that may be offered to him.

Question 28

Workers' compensation programs serve to prevent financial disaster to employees who are injured or become ill through their work.

Question 29

As health care costs rise, TynsCorp is exploring ways to contain costs. One thing they might want to consider is requiring employees to share more of the burden by increasing the portion of the premium that employees need to pay.

Question 30

If an employee takes a leave of absence under the Family and Medical Leave Act, the employer must continue the employee's medical benefits for the duration of the leave.

Question 31

Group health care plans only cover medical, surgical, and hospital expenses.

Question 32

The Family and Medical Leave Act permits substitution of paid leave and vacation during leave.

Question 33

Some states provide rights to employees that are lesser than those provided by the Family and Medical Leave Act.

Question 34

One of the changes brought about through recent workers' compensation laws is that disabled workers receive uniform compensation regardless of the state in which they work.

Question 35

TynsCorp and Lowell Industries are similar-sized companies located in the same state, and operating in the same market sector. Because TynsCorp has a much higher injury rate than Lowell Industries, it pays a higher workers' compensation insurance rate.

Question 36

Ric was on leave from TynsCorp under the Family and Medical Leave Act. Now that he is ready to return to work, TynsCorp must provide him with a job, but it can be at lower pay or with fewer benefits than what he had before if that is the only position available.

Question 37

Under the Family and Medical Leave Act, a convenience store owner with 20 employees is required to provide up to 12 weeks of unpaid leave to an eligible employee for medical reasons.

Question 38

The Consolidated Omnibus Budget Reconciliation Act requires all employers to provide health care coverage to employees and their spouses for 12 months following termination, death, or divorce of an employee.

Question 39

Jolee's is a fairly small company. It employs 75 people. Of those, 62 are full time, working 40 or more hours a week, and the rest are part time, working 20-25 hours a week. Because of legislation that went into effect in 2014, Jolee's must offer employees health insurance or else pay a penalty to the government.

Question 40

Employers pay a fixed annual fee to a health maintenance organization to cover a majority of their employees' medical costs.

Question 41

A 401(k) plan is also called a cash balance pension plan.

Question 42

Companies may match employee contributions to a 401(k) with cash or company stock.

Question 43

The "payment for time not worked" category of benefits includes all absences from work except sick leaves and personal leaves taken by employees.

Question 44

TynsCorp offers a defined benefit pension plan. But since it has no guarantees of payments, TynsCorp also strongly encourages its employees to participate in a 401(k) plan, which guarantees payments based on years of service.

Question 45

TynsCorp has a defined-contribution pension plan. The company feels this type of plan is most beneficial to the employees because the amount an employee is to receive upon retirement is specifically set forth.

Question 46

When an employer offers a contributory pension plan, contributions are made jointly by employers and the government.

Question 47

Some firms are penalizing employees for unhealthy habits by charging them higher health care premiums for habits such as smoking.

Question 48

One estimate is that the "payment for time not worked" category of benefits comprises a large expenditure, which is over 25 percent of the employer's total payroll costs.

Question 49

Supplemental unemployment benefits are not required by law and are usually funded by an employer.

Question 50

Even though paid time off is not mandated by law, most companies provide paid vacation time for their employees because research shows that workers who get vacations are more productive and less prone to job-related burnout.

Question 51

According to the "payment for time not worked" category, all workers are guaranteed at least ten paid holidays each year.

Question 52

TynsCorp has rolled out a new set of benefits from which employees may take advantage of one per calendar year. These benefits include up $2,000 towards the cost of home insulation or the purchase of a hybrid car. This program is an example of green benefits.

Question 53

TynsCorp needs to downsize to meet changing demands in the market. Employees who are let go during this downsizing qualify for severance pay. As a result, in addition to state unemployment compensation, they will also receive weekly severance pay from TynsCorp.

Question 54

Typically, in a 401(k) savings plan, an employer matches an employee contribution at the rate of 25 to 50 cents for every worker dollar contributed.

Question 55

Most companies require their employees to either take their vacation days by the end of the year or forfeit them.

Question 56

Paid time off for hours not worked is not mandatory in the United States.

Question 57

As health care costs rise, TynsCorp is exploring ways to contain costs. One option, common among large companies like TynsCorp, is to reduce or even eliminate the health care plans they provide to retirees.

Question 58

Today, employers are required to provide pension plans to all full-time employees.

Question 59

Almost all workers with health coverage receive mental health benefits as part of their plans.

Question 60

Severance pay is considered a supplemental unemployment benefit.

Question 61

TynsCorp offers domestic companion benefits, but, as is common, in order to receive these benefits, the employees must sign

A)a writ of Common Domestic Marriage.
B)an Affidavit of Domestic Partnership.
C)an Affidavit of Residency within their state of residence.
D)a waiver of legal liability.

Question 62

The communication of employee benefits information improved significantly with the passage of the

A)Employee Retirement Income Security Act.
B)Social Security Act.
C)Old Age, Survivors, and Disability Insurance Act.
D)Consolidated Omnibus Budget Reconciliation Act.

Question 63

Regardless of the medium, which of the following is NOT a general pointer for designing benefits information?

A)Avoid complex language when describing benefits.Clear, concise, and understandablelanguage is a must.
B)Explain the purpose behind a benefit and the value it offers employees.Be up frontabout the pros and cons of different benefit plans.
C)Provide numerous examples to illustrate how a benefit choice might affect different types of employees, depending upon their personal circumstances.
D)Avoid the use of graphics as, they tend to make the information less understandable and encourage confusion.

Question 64

TynsCorp wants to get input from its employees regarding its benefits package. The most common way to do this would be to use

A)performance appraisals.
B)psychological tests.
C)union reports.
D)opinion surveys.

Question 65

Childcare, elder care, and extended leave policies are all examples of work-life benefits.

Question 66

TynsCorp is reviewing its benefits package. Which of the following benefits would TynsCorp be able to discontinue since it is NOT a legally required employee benefit?

A)Employer contributions to Social Security
B)Employer contributions to unemployment insurance
C)Employer contributions to workers' compensation insurance
D)Employer contributions to minimum life insurance

Question 67

Online benefits systems are often referred to as __________ and can result in significant cost savings in benefits administration.

A)cafeteria plans
B)value-based initiatives
C)employee self-service systems
D)high-deductible health insurance plans

Question 68

Benefits can represent, on average, about __________ of the employer's total payroll costs.

A)28 percent
B)7 percent
C)12 percent
D)66 percent

Question 69

When communicating benefits programs to employees, it is a good idea to use

A)technical legal language to avoid subsequent liability.
B)one uniform method to communicate to all employees.
C)multiple media techniques.
D)graphics and presentation software to conceal unpleasant news.

Question 70

TynsCorp gave its employees misleading information about the welfare benefits to which they may be entitled. Those employees can sue TynsCorp under provisions of the

A)Social Security Act.
B)Employee Retirement Income Security Act.
C)Consolidated Omnibus Budget Reconciliation Act.
D)Family and Medical Leave Act.

Question 71

Which of the following represents the greatest expense to which a dollar of the employee compensation goes to the United States, after wages?

A)Supplemental pay
B)Paid leave
C)Legally required benefits
D)Health, life, and disability insurance

Question 72

Flexible benefit plans

A)are offered to employees who then must purchase each benefit they select.
B)are avoided by employers because they increase administration costs.
C)result in wasted benefits because of the number of different types available to employees.
D)allow employees to choose benefits suited to their needs.

Question 73

Why would a company consider increasing the amounts that employees have to pay towards their benefits by increasing premiums or deductibles?

A)To comply with ERISA guidelines
B)To encourage early retirement
C)To contain costs
D)To limit workers' compensation claims

Question 74

David is vested in the pension plan at TynsCorp. In order to receive the benefits, he must be employed by TynsCorp at the time of his retirement.

Question 75

A common childcare benefit offered by employers is the dependent care spending account.

Question 76

TynsCorp subsidizes temporary care for an employee's elders or children when the regular caregiver cancels at the last minute. This benefit, which allows employees to still come to work, is called a backup care program.

Question 77

__________ enable individual employees to choose the benefits that are best suited to their particular needs.

A)Employee self-service systems
B)Cafeteria plans
C)Employee wellness programs
D)Social Security plans

Question 78

As the workforce has become more diverse, more employers are now willing to provide benefits to employees who establish a

A)dual taxing relationship.
B)joint employment status.
C)codependent relationship.
D)domestic partnership.

Question 79

Employee assistance programs (EAPs) help employees mainly with relocation costs.

Question 80

A standard definition of domestic partnership includes all of the following EXCEPT

A)a requirement that the couple live together.
B)a specification of financial interdependence.
C)a requirement that the relationship be a permanent one.
D)a requirement that each be a blood relative.