Question 1

Who has the key responsibility of communicating benefits information to employees?

Accepted Answer

The employer has the key responsibility of communicating benefits information to employees, ensuring they are informed about their entitlements and how to access them.

Question 2

What is the key reason why employers' benefits costs are less in Canada versus the United States?

Accepted Answer

The key reason employers' benefits costs are less in Canada compared to the United States is because healthcare is subsidized by the government in Canada. This means that a significant portion of healthcare expenses is covered through public funding, reducing the financial burden on employers for their employees' health benefits.

Question 3

Who contributes financially to the Employment Insurance Fund that is used to support unemployment insurance claims?

Accepted Answer

Employers and employees both contribute financially to the Employment Insurance Fund, which is used to support unemployment insurance claims. This system is designed to provide temporary financial assistance to eligible workers who lose their jobs.

Question 4

Which of the following is the best explanation of the increasing cost of employee benefits?

Accepted Answer

Employers often increase benefits to remain competitive in attracting and retaining talent, leading to higher costs.

Question 5

Great Parcel Inc. has numerous office locations across Canada, including isolated areas with no access to the Internet. What would be the most efficient way for the company to communicate a new benefit to all its employees?

Accepted Answer

Payroll inserts are efficient as they reach all employees, including those in isolated areas without internet access, ensuring everyone receives the information directly with their pay.

Question 6

Which of these statements best describes management concerns about benefits?

Accepted Answer

Management is concerned with tax consequences because benefits can be taxed as income.

Question 7

What is an important reason why employers need to communicate the extent and value of the benefits they provide?

Accepted Answer

Employees often do not fully understand or appreciate the value of the benefits package provided by their employer. Effective communication can help employees see the full value of their compensation beyond just their salary, which can improve morale and retention.

Question 8

What are the two critical factors considered when determining the amount of employment insurance to be paid to unemployed applicants?

Accepted Answer

The amount of employment insurance an individual receives is determined by the number of hours they have worked in the past year and the regional unemployment rates, which affect the duration and amount of benefits.

Question 9

What's a major problem facing the Canada Pension Plan?

Accepted Answer

The aging population is a major problem for the Canada Pension Plan because as more people retire and live longer, the system faces increased pressure to provide for them, potentially straining its financial resources.

Question 10

Which of the following is a method to contain the costs of benefits?

Accepted Answer

Making contribution changes, such as increasing deductibles, is a common method to contain the costs of benefits. This approach can help manage the expenses associated with providing benefits by requiring participants to pay more out-of-pocket before the benefits kick in, thus potentially reducing the overall cost to the employer or benefits provider.

Question 11

What is an important factor in determining the effectiveness of benefits programs in organizations?

Accepted Answer

Effective administration is crucial in ensuring that benefits programs are implemented smoothly, communicated clearly, and managed efficiently, which directly impacts their effectiveness.

Question 12

What's a major disadvantage of cafeteria benefit plans?

Accepted Answer

Cafeteria benefit plans increase the complexity of the administration of the plans because they offer a variety of benefits for employees to choose from, making management and tracking more complicated compared to standard, one-size-fits-all benefit packages.

Question 13

Susie Jones has definite preferences in terms of the benefits offered by her employer. Susie will be able to select the benefits she values highly and avoid those she does not need or want if her employer offers which benefit format?

Accepted Answer

A flexible benefits plan allows employees like Susie to select from a range of benefits options to tailor their benefits package to their personal needs and preferences, thus enabling her to choose the benefits she values most and avoid those she does not need or want.

Question 14

Which of the following benefits must be provided by employers in Canada because it is legally required?

Accepted Answer

Employment insurance is a mandatory benefit that employers in Canada must contribute to, providing temporary financial assistance to unemployed Canadians while they look for employment or upgrade their skills. Dental benefits, vision care, and out-of-country medical assistance are not legally required and are often offered as additional, optional benefits by some employers.

Question 15

Ideally, which of the following should apply to an organization's benefits system?

Accepted Answer

An organization's benefits system should be aligned with its overall strategy to ensure it supports the organization's goals, attracts, and retains the right talent, and is sustainable for the organization. This approach allows for a more strategic use of benefits as part of the total compensation strategy, rather than merely matching competitors or limiting benefits to mandatory ones. There is no specific rule that benefits should be more than 50 percent of payroll costs, as this can vary widely depending on the industry, size of the organization, and other factors.

Question 16

Management at ABC Inc. wants to introduce a new benefit that is not required by law. What should it do first?

Accepted Answer

Before introducing a new benefit, management should first establish that there is a need for it among employees. This ensures that the benefit will be valued and utilized, making it a worthwhile investment for the company.

Question 17

Which statement best describes flexible benefit plans?

Accepted Answer

Flexible benefit plans allow employees to choose from a range of benefits to tailor their compensation package to their personal needs, making them more appealing and personalized.

Question 18

ABC Corporation uses the services of professional benefits vendors to administer their benefits. What is this practice a form of?

Accepted Answer

Outsourcing is the practice of hiring external organizations to perform services or create goods that traditionally were performed in-house by the company's own employees and staff. In this case, ABC Corporation is outsourcing its benefits administration to professional benefits vendors.

Question 19

Which of the following statements is most applicable to the benefits costs to employers in Canada and the United States?

Accepted Answer

Benefits costs are generally higher in the United States compared to Canada, primarily due to the higher costs of healthcare in the U.S. In Canada, the universal healthcare system significantly reduces the burden of healthcare benefits on employers.

Question 20

Canada's workforce is becoming increasingly diverse. How is this having an impact on benefits programs?

Accepted Answer

Benefit programs are adapting to the diverse needs of the workforce, including those of families, by becoming more family-friendly. This reflects the changing demographics and the varying needs of employees.

Quiz 11: Employee Benefits