Question 1

When paying for discretionary benefits,contributory financing is when the company and its employees share the costs.(Basic Design Considerations for Discretionary Benefits)

Accepted Answer

Contributory financing is when both the company and its employees bear the costs of discretionary benefits.

Question 2

Benefits are defined as compensation that includes wages and salary as well as other services.(Defining Employee Benefits)

Accepted Answer

Benefits are typically considered separate from wages and salary, and include additional forms of compensation such as health insurance, retirement plans, and paid time off, rather than direct monetary payments.

Question 3

Workers' compensation laws are state laws.(State Compulsory Disability Laws (Workers' Compensation))

Accepted Answer

Workers' compensation laws vary by state and are established by each state's legislature.

Question 4

Benefits professionals craft benefits strategies based on information contained in strategic benefit plans.(Basic Strategic Planning Concepts)

Accepted Answer

Benefits professionals use strategic benefit plans to craft benefits strategies that align with the organization's overall strategic goals and objectives. These plans provide critical information on the company's competitive landscape, workforce demographics, and financial resources, helping benefits professionals make informed decisions about benefit offerings, cost management, and employee engagement.

Question 5

The planned use of company resources to promote and sustain competitive advantage is referred to as competitive strategy.(Basic Strategic Planning Concepts)

Accepted Answer

Competitive strategy involves the deliberate use of company resources to gain and maintain a competitive advantage in the market. This can include tactics such as pricing, product differentiation, and innovation, among others.

Question 6

Vacations are a type of accommodation benefit.(Paid TimeOff)

Accepted Answer

Vacations are a form of leave benefit, allowing employees time off from work, not an accommodation benefit which typically refers to adjustments or modifications made to the job or work environment.

Question 7

Person-focused pay rewards employees with periodic additions to base pay,according to length of service.(Adjustments to Core Compensation)

Accepted Answer

Person-focused pay rewards employees based on their individual skills and contributions, not just longevity with the company. It does not solely rely on length of service for adjustments to base pay.

Question 8

Total compensation strategies detail different scenarios that may affect the company,emphasizing long-term changes in how a company's benefit plan operates.(Basic Strategic Planning Concepts)

Accepted Answer

Total compensation strategies focus on the overall package offered to employees, including wages, benefits, bonuses, and other perks, rather than detailing scenarios or emphasizing long-term changes in benefit plans.

Question 9

Employees are most likely to endorse benefits that fulfill their needs.(Changing Demographics of the Labor Force)

Accepted Answer

As the demographics of the labor force change, it becomes more important for employers to offer benefits that appeal to employees' unique needs and situations. When employees feel that their needs are being met through their benefits package, they are more likely to endorse and appreciate these benefits.

Question 10

Employers are free to offer discretionary benefits but specific laws influence the application of these practices.(Legal and Regulatory Influences on Discretionary Benefits Practices)

Accepted Answer

While employers are free to offer discretionary benefits, specific laws such as the Employee Retirement Income Security Act (ERISA) and the Affordable Care Act (ACA) regulate certain aspects of these practices, such as retirement plans and healthcare benefits.

Question 11

Protection programs most closely parallels legally required benefits.(Discretionary Benefits)

Accepted Answer

Protection programs, such as workers' compensation and unemployment insurance, are legally required benefits for employees in many countries. This is similar to how discretionary benefits, such as health insurance and retirement plans, are typically offered by employers but not legally required.

Question 12

Union workers cannot negotiate paid time off benefits.(Paid TimeOff)

Accepted Answer

Union workers can negotiate paid time off benefits as part of their collective bargaining agreement with their employer.

Question 13

Voluntary benefits are supplemental benefits companies off on an employee-financed basis.(Basic Design Considerations for Discretionary Benefits)

Accepted Answer

Voluntary benefits are added employee benefits that are offered on an optional, employee-financed basis.

Question 14

Under the Patient Protection and Affordable Care Act,dental care is included under the required health care offered to employees.(The Patient Protection and Affordable Care Act of 2010)

Accepted Answer

Dental care is not included as a required health care under the Patient Protection and Affordable Care Act. However, pediatric dental care is considered an essential health benefit for children under the age of 18.

Question 15

Life insurance programs protect employees' families in the event of untimely illness.(Protection Programs)

Accepted Answer

Life insurance programs protect employees' families in the event of the employee's death, not illness.

Question 16

During the 1940s and 1950s,companies expanded their discretionary benefits as an alternative to wage increases or as a motivational tool.(Origins of Employee Benefits)

Accepted Answer

This statement is true according to the Origins of Employee Benefits article.

Question 17

Incentive-pay is a permanent increase of compensation based on individual goal achievement.(Adjustments to Core Compensation)

Accepted Answer

Incentive pay typically refers to temporary, performance-based pay designed to motivate and reward employees for exceeding specific goals or performance criteria, rather than a permanent increase in base salary.

Question 18

Health care was a discretionary benefit until passage of the Family and Medical Leave Act in 1993.(The Fundamental Roles and Sources of Employee Benefits)

Accepted Answer

The statement is incorrect. Health care benefits were available to some employees through their employers prior to the passage of the Family and Medical Leave Act in 1993. However, the act did provide protections and expanded access to certain health care benefits for eligible employees.

Question 19

In financing discretionary benefits,employers always pay the total cost incurred.(Basic Design Considerations for Discretionary Benefits)

Accepted Answer

Employers often share the cost of discretionary benefits with employees, rather than paying the total cost. This can include contributions to health insurance, retirement plans, and other benefits where both parties contribute to the cost.

Question 20

The existence of labor union has limited the use of welfare practices by companies.(Origins of Employee Benefits)

Accepted Answer

Labor unions have often pushed for better welfare practices and benefits for workers, leading many companies to adopt more comprehensive employee benefits to meet union demands or to avoid unionization.

Quiz 1: Introducing Employee Benefits