Deck 11: Employee Benefits

Question 1

With a flexible spending account, an employee will take home less spendable pay.

Answer 1

False

Question 2

A recent survey found that as many as 70 percent of American workers didn't take all of their vacation time.

Answer 2

True

Question 3

A preferred provider organization provides for continued employee benefits up to three years after an employee leaves a job.

Answer 3

False

Question 4

The type of voluntary benefits offered is limited by federal legislation.

Question 5

MATCHING KEY TERMS AND DEFINITIONS
a)Summary Plan Description
b)Defined contribution plan
c)Health Maintenance Organization
d)Flexible benefits
e)Workers' compensation
f)Domestic partner benefits
g)Legally required benefits
h)Unemployment compensation
i)Social Security
j)PPO
k)Employee benefits
l)ERISA
m)Consumer driven health plan (CDHP)
n)Flexible spending accounts
o)Defined benefit plan
Retirement, disability, and survivor benefits, paid by the government to aged, former members of the labor force, the disabled, or their survivors.

Question 6

An employer's worker compensation insurance rates are determined by their history of accidents, similar to car insurance rates.

Question 7

MATCHING KEY TERMS AND DEFINITIONS
a)Summary Plan Description
b)Defined contribution plan
c)Health Maintenance Organization
d)Flexible benefits
e)Workers' compensation
f)Domestic partner benefits
g)Legally required benefits
h)Unemployment compensation
i)Social Security
j)PPO
k)Employee benefits
l)ERISA
m)Consumer driven health plan (CDHP)
n)Flexible spending accounts
o)Defined benefit plan
A retirement plan pays retiring employees a fixed retirement income based on average earnings over a period of time.

Question 8

A retirement program that pays retiring employees a fixed retirement income based on average earning over a period of time is a defined contribution plan.

Question 9

ERISA spells out employer requirements for employee health insurance benefits.

Question 10

PTO plans require employees to specify the reason for time off if it is to be paid by the employer.

Question 11

CDHP plans have high deductibles and allow employees to contribute to a Health Savings Account.

Question 12

When the Pension Benefit Guaranty Corporation takes over an underfunded pension plan, if there aren't enough assets in the pension plan to pay the retirement obligations, then taxpayers will make up the difference.

Question 13

The U.S is one of the few developed countries that do not require employers to provide any paid vacation time.

Question 14

Social security eligibility is calculated on credits earned rather than years in the workforce.

Question 15

Employee insurance that provides some income continuation in the event an employee is laid off is called worker's compensation.

Question 16

Fortunately, the cost of employee benefits to organizations has remained stable over the last thirty years.

Question 17

Unemployment compensation and workers' compensation are examples of voluntary benefits.

Question 18

Paid time off and retirement plans are examples of voluntary benefits.

Question 19

Defined benefit pension plans pay a specific amount of money to qualified employees, usually for the rest of the employee's life.

Question 20

Flexible benefit plans, although more expensive to the organization, provide more choice to the workforce.

Question 21

MATCHING KEY TERMS AND DEFINITIONS
a)Summary Plan Description
b)Defined contribution plan
c)Health Maintenance Organization
d)Flexible benefits
e)Workers' compensation
f)Domestic partner benefits
g)Legally required benefits
h)Unemployment compensation
i)Social Security
j)PPO
k)Employee benefits
l)ERISA
m)Consumer driven health plan (CDHP)
n)Flexible spending accounts
o)Defined benefit plan
Benefits offered to an employee's "live-in" partner.

Question 22

Employers often sponsor ________________ to reduce the risk of chronic diseases and keep employees healthy.

Question 23

MATCHING KEY TERMS AND DEFINITIONS
a)Summary Plan Description
b)Defined contribution plan
c)Health Maintenance Organization
d)Flexible benefits
e)Workers' compensation
f)Domestic partner benefits
g)Legally required benefits
h)Unemployment compensation
i)Social Security
j)PPO
k)Employee benefits
l)ERISA
m)Consumer driven health plan (CDHP)
n)Flexible spending accounts
o)Defined benefit plan
Provides comprehensive health services for a flat fee.

Question 24

MATCHING KEY TERMS AND DEFINITIONS
a)Summary Plan Description
b)Defined contribution plan
c)Health Maintenance Organization
d)Flexible benefits
e)Workers' compensation
f)Domestic partner benefits
g)Legally required benefits
h)Unemployment compensation
i)Social Security
j)PPO
k)Employee benefits
l)ERISA
m)Consumer driven health plan (CDHP)
n)Flexible spending accounts
o)Defined benefit plan
Allows employees to set aside money before payroll taxes to pay health-care or dependent care.

Question 25

MATCHING KEY TERMS AND DEFINITIONS
a)Summary Plan Description
b)Defined contribution plan
c)Health Maintenance Organization
d)Flexible benefits
e)Workers' compensation
f)Domestic partner benefits
g)Legally required benefits
h)Unemployment compensation
i)Social Security
j)PPO
k)Employee benefits
l)ERISA
m)Consumer driven health plan (CDHP)
n)Flexible spending accounts
o)Defined benefit plan
A benefits program in which employees are permitted to pick benefits that most meet their needs.

Question 26

The Pension Benefit Guaranty Corporation lays claim to an organization's assets to fund pension programs under ___________.

Question 27

MATCHING KEY TERMS AND DEFINITIONS
a)Summary Plan Description
b)Defined contribution plan
c)Health Maintenance Organization
d)Flexible benefits
e)Workers' compensation
f)Domestic partner benefits
g)Legally required benefits
h)Unemployment compensation
i)Social Security
j)PPO
k)Employee benefits
l)ERISA
m)Consumer driven health plan (CDHP)
n)Flexible spending accounts
o)Defined benefit plan
Combines a health plan with a high deductible with a health savings account that the insured uses to pay for deductibles and medical care.

Question 28

__________ is one of the most important benefits for employees because of the tremendous increases in cost.

Question 29

If an employee is unable to work due to injury or illness, ________________ pays a percentage of his or her income for up to 6 months.

Question 30

MATCHING KEY TERMS AND DEFINITIONS
a)Summary Plan Description
b)Defined contribution plan
c)Health Maintenance Organization
d)Flexible benefits
e)Workers' compensation
f)Domestic partner benefits
g)Legally required benefits
h)Unemployment compensation
i)Social Security
j)PPO
k)Employee benefits
l)ERISA
m)Consumer driven health plan (CDHP)
n)Flexible spending accounts
o)Defined benefit plan
An ERISA requirement of explaining to employees their pension program and rights.

Question 31

MATCHING KEY TERMS AND DEFINITIONS
a)Summary Plan Description
b)Defined contribution plan
c)Health Maintenance Organization
d)Flexible benefits
e)Workers' compensation
f)Domestic partner benefits
g)Legally required benefits
h)Unemployment compensation
i)Social Security
j)PPO
k)Employee benefits
l)ERISA
m)Consumer driven health plan (CDHP)
n)Flexible spending accounts
o)Defined benefit plan
Employee insurance which provides some income continuation in the event an employee is
injured on the job.

Question 32

A __________ is a retirement program that pays retiring employees a fixed retirement income based on average earnings over a period of time.

Question 33

The __________ provides for continued employee benefits up to three years after an employee leaves a job.

Question 34

MATCHING KEY TERMS AND DEFINITIONS
a)Summary Plan Description
b)Defined contribution plan
c)Health Maintenance Organization
d)Flexible benefits
e)Workers' compensation
f)Domestic partner benefits
g)Legally required benefits
h)Unemployment compensation
i)Social Security
j)PPO
k)Employee benefits
l)ERISA
m)Consumer driven health plan (CDHP)
n)Flexible spending accounts
o)Defined benefit plan
Membership-based, nonfinancial rewards offered to attract and keep employees.

Question 35

MATCHING KEY TERMS AND DEFINITIONS
a)Summary Plan Description
b)Defined contribution plan
c)Health Maintenance Organization
d)Flexible benefits
e)Workers' compensation
f)Domestic partner benefits
g)Legally required benefits
h)Unemployment compensation
i)Social Security
j)PPO
k)Employee benefits
l)ERISA
m)Consumer driven health plan (CDHP)
n)Flexible spending accounts
o)Defined benefit plan
Employee benefits mandated by law.

Question 36

MATCHING KEY TERMS AND DEFINITIONS
a)Summary Plan Description
b)Defined contribution plan
c)Health Maintenance Organization
d)Flexible benefits
e)Workers' compensation
f)Domestic partner benefits
g)Legally required benefits
h)Unemployment compensation
i)Social Security
j)PPO
k)Employee benefits
l)ERISA
m)Consumer driven health plan (CDHP)
n)Flexible spending accounts
o)Defined benefit plan
Organization that requires using specific physicians and health-care facilities to contain the rising costs of health care.

Question 37

MATCHING KEY TERMS AND DEFINITIONS
a)Summary Plan Description
b)Defined contribution plan
c)Health Maintenance Organization
d)Flexible benefits
e)Workers' compensation
f)Domestic partner benefits
g)Legally required benefits
h)Unemployment compensation
i)Social Security
j)PPO
k)Employee benefits
l)ERISA
m)Consumer driven health plan (CDHP)
n)Flexible spending accounts
o)Defined benefit plan
Law passed in 1974 designed to protect employee retirement benefits.

Question 38

The __________ requires organizations with 50 or more employees to provide eligible employees the opportunity to take up to 12 weeks of unpaid leave each year for family or medical reasons.

Question 39

MATCHING KEY TERMS AND DEFINITIONS
a)Summary Plan Description
b)Defined contribution plan
c)Health Maintenance Organization
d)Flexible benefits
e)Workers' compensation
f)Domestic partner benefits
g)Legally required benefits
h)Unemployment compensation
i)Social Security
j)PPO
k)Employee benefits
l)ERISA
m)Consumer driven health plan (CDHP)
n)Flexible spending accounts
o)Defined benefit plan
Employee insurance which provides some income continuation in the event an employee is laid off.

Question 40

MATCHING KEY TERMS AND DEFINITIONS
a)Summary Plan Description
b)Defined contribution plan
c)Health Maintenance Organization
d)Flexible benefits
e)Workers' compensation
f)Domestic partner benefits
g)Legally required benefits
h)Unemployment compensation
i)Social Security
j)PPO
k)Employee benefits
l)ERISA
m)Consumer driven health plan (CDHP)
n)Flexible spending accounts
o)Defined benefit plan
A type of retirement program whereby each employee has an individual account to which both the employee and the employer may make contributions.

Question 41

_________ is a program whereby employees are presented with a menu of benefits and asked to select, within monetary limits imposed, the benefits they desire.

Question 42

Andre, a pizza maker, fell against an oven and injured his hand.His company was reluctant to file a workers' compensation report for this injury.Why?

A)Insurance rates are computed based on the organization's accident experience.
B)Workers' compensation is designed to provide income for employees who are between jobs, not for injuries.
C)Hand injuries are not covered under this legislation.
D)Workers' compensation benefits are paid to surviving relatives.John did not die.
E)John's company self-insured with a private company.

Question 43

At the Federal level, the unemployment tax (called FUTA)is _________ on the first $7,000 of earnings of employees.

A)3)0%
B)4)2%
C)5)4%
D)6)0%
E)7)2%

Question 44

A __________ provides comprehensive health services for a flat fee.

Question 45

One of the most popular types of short-term disability is a company's _________ plan.

Question 46

Why do organizations offer domestic partner benefits?

A)Maid service frees up employee time for more recreational activities.
B)Living arrangements and family definition differ today from those in any other time in our history.
C)Companies are legally required to do so.
D)Health care benefits are an inexpensive way to recruit good workers.
E)Global standards require it.

Question 47

Which is NOT true of COBRA?

A)Employees who leave an employer can continue their health insurance for up to 3 years.
B)Employers are required to inform employees of their eligibility for COBRA within 30 days of being laid off.
C)Employers may charge an administrative fee.
D)COBRA is usually the least expensive health insurance option for workers who are between jobs.
E)Those using COBRA pay the total expense for the insurance.

Question 48

Which of the following NOT true of Social Security?

A)It provides health insurance through Medicare.
B)Employees and employers both contribute 6.2 percent of employee earnings.
C)Employees can earn up to 40 credits a year.
D)Those born in 1960 and later don't receive full benefits until they turn 67.
E)Dependents of workers who have died are eligible.

Question 49

Donna, a 45-year-old bank manager, is married to Darren, a 40-year-old economist with a real estate development firm.They currently waive all optional portions of Donna's retirement package.Darren received a letter from his employer stating that the firm is changing retirement and benefits plans the first of the year.How can they determine which of their company pension retirement benefits plans should be changed or kept?

A)Social Security Administration Review
B)COBRA
C)Summary Plan Description
D)HIPAA
E)Pension Benefit Guaranty Corporation Publications

Question 50

Benefits add nearly _________ to an organization payroll costs.

A)20%
B)30%
C)40%
D)50%
E)60%

Question 51

A large publishing house decided to voluntarily terminate its pension program.What protection do its employees and retirees have?

A)If the firm is located in California, such action is illegal.
B)The SPD will supply 90% of accrued pension benefits until all recipients are eligible for Social Security retirement benefits.
C)The PBGC will lay claim of up to 30% of the corporation's assets to pay benefits that have been promised to employees.
D)There is no protection for employees.
E)COBRA will cover 30% of the benefits that have been promised to employees.

Question 52

Which of these is NOT an example of ways employers try to reduce health-care costs:

A)Raising the deductibles that employees must pay.
B)Providing health screenings.
C)Charging smokers more for insurance.
D)Closing wellness programs and facilities.
E)Providing access to telemedicine and nurse hotlines.

Question 53

Which is NOT true of the Health Insurance Portability and Accountability Act?

A)Individuals decide who can receive personal health information and how it will be communicated.
B)Doctors and insurance companies cannot communication with an individual's employer with out the individual's permission.
C)It is also called Obamacare.
D)Employers may require doctor's note for employee absences.
E)Employers may require doctor's notes for ADA accommodation requests

Question 54

Rajiv works for a major private employer.Each year, he contributed a substantial amount to a retirement benefit plan.The employer matches these pre-tax dollars up to 6% of his income.What kind of retirement program does Rajiv have?

A)Defined benefit plan
B)Profit-sharing plan
C)Money purchase pension plan
D)401(k)
E)403(b)

Question 55

Lizzie has employer-provided health insurance.She makes a small contribution toward the cost of insurance but pays for most of her expenses every year because her insurance plan has a $5,000 deductible.To offset the out-of-pocket costs, she contributes through payroll deduction to a savings account that she can use to cover the out-of-pocket costs.Her employer also contributes to this savings account.Which type of plan does Lizzie have?

A)HIPPA
B)HMO
C)PPO
D)COBRA
E)CDHP

Question 56

Which of the following pieces of legislation ensures confidentiality of employee health information?

A)COBRA
B)HMO
C)HIPAA
D)ERISA
E)PPO

Question 57

Unemployment compensation laws provide benefits to those meeting the following conditions EXCEPT

A)Individuals are without a job due to layoffs.
B)Individuals are without a job due to discharges for gross misconduct.
C)Individuals have applied to their state employment agency for unemployment compensation.
D)Individuals have registered for available work.
E)Individuals are willing and able to accept any suitable employment offered through their state unemployment compensation commission.

Question 58

Which of the following is NOT true regarding Social Security?

A)Social Security provides a source of income for American retirees, disabled workers, and surviving dependents of workers who have died.
B)Social Security provides some health insurance coverage through the federal Medicare program.
C)Social Security is financed only by the employer contributions.
D)To be eligible for Social Security, employees must be employed for a minimum of 40 quarters.
E)Social Security benefits vary based on the previous year's inflation, additional earnings, and recipient age.

Question 59

Which of the following is NOT a legally required benefit?

A)Retirement plans
B)Social Security
C)Unemployment compensation
D)Workers' compensation
E)Unpaid family and medical leave

Question 60

All of the following statements about workers' compensation are accurate EXCEPT:

A)Workers' compensation is counted as part of labor expenses due to the accountability factor.
B)Cost of workers' compensation is shared between the employee and the employer.
C)Workers' compensation benefits are based on fixed schedules of minimum and maximum payments.
D)Some states allow employers to self-insure for workers' compensation.
E)Some states provide a required insurance system for handling workers' compensation.

Question 61

All of the following are advantages of offering paid time off (PTO)leave to employees EXCEPT

A)Employees can take unused time as additional vacation days.
B)Employees do not need to explain to their manager why they taking time off.
C)Employees may consider PTO as vacation time and not use it when they are ill.
D)Absences are reduced as a PTO day is scheduled in advanced.
E)Employees like the flexibility and trust that employers offer with PTO policies.

Question 62

U.S.workers enjoy on average _______ days of vacation each year.

A)5
B)10
C)15
D)20
E)25

Question 63

Vinita, a nurse, broke her hand tending a patient.She has used up her annual sick leave and will be unable to work for six more weeks.She is receiving pay for her time not worked through which benefit plan?

A)Employee assistance
B)Worker's replacement
C)Short-term disability
D)Company sick leave
E)Long-term disability

Question 64

Which of the following is NOT a type of defined contribution plan?

A)Money purchase pension plan
B)Profit-sharing plan
C)IRA
D)SPD
E)401(k)

Question 65

Which is NOT true about The Patient Protection and Affordable Care Act:

A)Was passed by Congress in 2010.
B)Has faced numerous challenges in Congress and in the courts.
C)Expanded employer responsibility by requiring many employers to offer health insurance benefits to employees.
D)Requires protections for adoptive parents in the workplace.
E)Provides workplace protections for nursing mothers for up to a year after the birth of a child.

Question 66

The main benefit to companies that offer flexible benefits to employees is:

A)Compliance with federal wage and hour law regulations.
B)Employee productivity.
C)Avoid paying for benefits that are not used.
D)Enter new geographical markets.
E)Eliminate defined benefit pension plans.

Question 67

Sick leave, holiday leave, and long-term disabilities are grouped together as

A)intrinsic job enhancement.
B)retirement benefits.
C)paid time off.
D)health preservation benefits.
E)long-term maintenance.

Question 68

Two types of individual retirement accounts are:

A)money purchase IRA and profit-sharing IRA.
B)SEP and money purchase.
C)profit-sharing and SIMPLE IRA.
D)SEP IRA and SIMPLE IRA.
E)defined benefit and defined contribution.

Question 69

Jose works for a toy manufacturer that invests an amount equal to a certain percentage of his pay each year into a trust fund account.His firm has contributed to this optional program every year, even when they lost money.His fund usually receives the 25% maximum allowed by law.What kind of retirement program does Jose have?

A)Defined benefit plan
B)403(k)
C)Money purchase pension plan
D)Profit-sharing plan
E)Roth Individual Retirement Account

Question 70

Which of the following is the organization that lays claim to corporate assets to pay or fund inadequate pension programs?

A)SPD
B)HIPAA
C)PBGC
D)IRA
E)ERISA

Question 71

Which of the following expanded the availability and regulation of health insurance coverage, making changes in how health insurance is provided and paid for?

A)Health Insurance Portability and Accountability Act of 1996 (HIPAA)
B)Patient Protection and Affordable Care Act
C)Worker's compensation
D)Consolidated Omnibus Budget Reconciliation Act (COBRA)
E)Social Security

Question 72

Jermaine, a janitor, fell from a ladder while he was changing a light bulb and hurt his leg and shoulder.As a result, he has been unable to work for the past five years and is drawing 60% of his salary.Under what benefit plan is he covered?

A)Wellness
B)Short-term disability
C)Keogh
D)Long-term disability
E)Employee assistance

Question 73

Which is not true about benefits offered in other countries?

A)China does not require any paid vacation leave.
B)Two-thirds of all countries require paid maternity leave.
C)Pension plans are provided by many governments rather than by employers.
D)Many governments provide health-care services, so employers only offer supplemental insurance.
E)The U.S.requires employers provide 10-15 days of paid employee leave every year.

Question 74

Which legally required benefit is paid for by the employer and the employee?

A)Unemployment compensation
B)Family and Medical Leave Act (FMLA)
C)Social Security
D)The Consolidated Omnibus Budget Reconciliation Act (COBRA)
E)Worker's compensation

Question 75

In Germany, paid vacation mandated are _____.

A)4 weeks
B)6 days
C)2 weeks
D)10 days
E)30 days

Question 76

Which legally required benefit is designed to protect employees' salaries and to shift the cost of accidents and rehabilitation to employers?

A)Unemployment compensation
B)Family and Medical Leave Act (FMLA)
C)Social Security
D)The Consolidated Omnibus Budget Reconciliation Act (COBRA)
E)Worker's compensation

Question 77

Raj, president of a medium-sized manufacturing company, believes that flexible benefits would be too expensive and confusing to administer and not worth the hassle."I checked into it before.It includes goofy things like pet insurance.We manufacture parts for heavy equipment manufacturers.How would that look? Nobody would take us seriously." As you attempt to explain the benefits of the flexible plan to him, which statement would you NOT use:

A)Flexible benefit plans are really attractive and might help you recruit for hard-to-fill positions.
B)You would save money because you would only provide benefits that employees actually want and use.
C)It is more expensive, but it will increase productivity if employees like the benefits.
D)You can pay all expense for the selected benefits or you can have the employee pay a portion.
E)Employees can save money on health expenses if you include flexible spending accounts.

Question 78

Which of the following is a retirement program that pays retiring employees a fixed retirement income based on average earnings over a period of time?

A)Defined benefit plan
B)Keogh plan
C)Defined contribution plan
D)IRA plan
E)Roth IRA plan

Question 79

Which of the following is NOT an element of the Employment Retirement Income Security Act (ERISA)?

A)Employers are required to keep pension plan assets separate from assets of the business.
B)An SPD that must be provided to employees that explains how the retirement plan works in plain language.
C)It established the PBGC.
D)Individual Retirement Accounts (IRAs)were established.
E)Employees whose pension plans failed receive a minimum benefit.

Question 80

Last year Rebecca set aside $5000 pretax dollars for child care in a flexible spending account.She only used $3200.What happened to the remaining $1800?

A)She received a lump sum payment of $1800 in her first January paycheck.
B)It reverted to her employer.
C)She had to pay taxes on the amount before it was added back to her income.
D)She transferred it to her medical care account.
E)It stays in the account to be used this year, a rollover.