A form of compensation whereby the employee receives a predetermined amount of benefit dollars to spend on a benefits package he or she has selected to meet individual needs is called a(n)
A) flexible compensation plan.
B) employee benefits plan.
C) Social Security account.
D) flexible benefits plan.
E) optional benefits package.

Question

Quizplus · Accepted Answer

The description given matches the characteristics of a flexible benefits plan, also known as a cafeteria plan or flexible spending account. This plan allows employees to select benefits that suit their needs and preferences, instead of receiving a standard benefits package. The employer allocates a certain amount of benefit dollars, and the employee can use those dollars to select and pay for the benefits they want. This form of compensation is becoming increasingly popular among companies as it allows for greater customization and choice for employees.

A Form of Compensation Whereby the Employee Receives a Predetermined