Question 1

At current rates,Old Age,Survivors,and Disability Insurance will exhaust its funds in ______.
A) 2027
B) 2056
C) never
D) 2034

Accepted Answer

According to the latest report from the Social Security Trustees, the Old Age, Survivors, and Disability Insurance (OASDI) program is projected to exhaust its funds in 2034, unless Congress takes action to address the shortfall. This projection assumes that current revenue and benefit formulas remain unchanged, and that the economy and demographics follow certain assumptions. However, it's worth noting that even if the trust funds are depleted, the Social Security program will still be able to pay a portion of promised benefits, as incoming payroll taxes will continue to fund some level of benefits.

Question 2

Once a benefit becomes part of the employee's compensation package,it is ______ to delete that benefit in the future.
A) very easy
B) very hard
C) essential
D) expected

Accepted Answer

Once a benefit becomes part of the employee's compensation package, it becomes an expectation and is difficult to remove without causing dissatisfaction among employees. It may also result in legal and financial consequences for the organization.

Question 3

Michaela and Carolyn are discussing changes to the benefits program at their organization.Michaela would like to see the organization provide more lifestyle benefits such a dog day care.Carolyn is pushing for more dental and disability coverage.What aspect of providing a benefits program are Michaela and Carolyn discussing?
A) amount
B) mix
C) flexibility
D) vesting

Accepted Answer

Michaela and Carolyn are discussing the mix of benefits, meaning the types of benefits being offered. Michaela wants to add lifestyle benefits, while Carolyn wants to enhance traditional benefits like dental and disability coverage.

Question 4

Employee benefits average ______ % of total employee compensation cost in U.S.organizations.
A) 18
B) 32
C) 45
D) 50

Accepted Answer

According to the Bureau of Labor Statistics, employee benefits average 32% of total employee compensation cost in U.S. organizations.

Question 5

______ benefits are the type of benefits that are required by law.
A) Statutory
B) Domestic
C) Cultural
D) Structural

Accepted Answer

Statutory benefits are those that are required by law, such as social security, unemployment insurance, and workers' compensation.

Question 6

______ provides basic medical benefits,but it was not designed to be a full-coverage program.
A) Welfare
B) Medicare
C) Social Security
D) Unemployment Insurance

Accepted Answer

Medicare provides basic medical benefits for those 65 and older or those with certain disabilities, but it does not cover everything and was not originally designed to be a full-coverage program.

Question 7

According to expectancy theory,______ is important in a benefits package because it gives employees the benefits that are of value to them.
A) rigidity
B) flexibility
C) experience
D) rating

Accepted Answer

Expectancy theory suggests that employees will be motivated when they expect that their efforts will lead to good performance, good performance will be rewarded, and they value the rewards being offered. Therefore, providing a benefits package that is flexible and allows employees to choose the benefits that are most valuable to them can enhance their motivation and job satisfaction.

Question 8

______ provide an incentive to employees to continue working for an organization because they feel as if they are being cared for by the organization.
A) Contributions
B) Ratings
C) Benefits
D) Rankings

Accepted Answer

Benefits, such as health insurance, retirement plans, and wellness programs, are perks offered by organizations to their employees. These perks provide an incentive to employees to continue working for the organization because they feel as if they are being cared for by the organization.

Question 9

Individuals become eligible for ______ at the same time as their eligibility for Social Security retirement begins.
A) Medicare
B) Welfare
C) Cultural benefits
D) Domestic benefits

Accepted Answer

Eligibility for Medicare begins at age 65, which is the same age at which individuals become eligible for Social Security retirement benefits. Welfare, cultural benefits, and domestic benefits have separate eligibility requirements and are not tied to Social Security retirement eligibility.

Question 10

Obiajulu and her employer both pay 1.45% of Obiajulu's earnings into ______.Obiajulu's portion is withheld from her paycheck.
A) Social Security
B) Medicare
C) unemployment insurance
D) retirement

Accepted Answer

Both Obiajulu and her employer pay 1.45% of her earnings into Medicare. Social Security taxes are also withheld from paychecks, but they are a separate tax that goes towards retirement, disability, and survivor benefits. Unemployment insurance and retirement are not funded through a percentage withheld from an employee's earnings.

Question 11

In examining her organization's benefits package,Petra has determined that the organization can provide a 40% premium to direct compensation for the cost of benefits.What aspect of providing a benefits program is Petra considering?
A) amount
B) mix
C) flexibility
D) vesting

Accepted Answer

Petra is considering the "amount" of the benefits package in relation to direct compensation, as she has determined a specific percentage (40%) that the organization can provide for the cost of benefits.

Question 12

______ is an insurance program designed to provide medical treatment and temporary payments to employees who cannot work because of an employment-related injury or illness.
A) Medicare
B) Workers' compensation
C) Unemployment Insurance
D) Social Security

Accepted Answer

Workers' compensation is specifically designed to provide medical treatment and wage replacement to employees who are unable to work due to a work-related injury or illness. Medicare, Social Security, and Unemployment Insurance do not provide these same benefits for employment-related injuries or illnesses.

Question 13

Providing ______ can reduce the tax burden on both the organization and the individual.
A) bonuses
B) benefits
C) merit pay
D) commissions

Accepted Answer

Benefits, such as health insurance, retirement plans, and flexible spending accounts, are tax-deductible expenses for organizations and are often not taxable for employees. This can reduce the tax burden for both parties. Bonuses, merit pay, and commissions are taxable income and do not have the same tax benefits as providing benefits.

Question 14

By far the largest of the U.S.statutory programs,in both size and cost to employers (and employees),are ______.
A) Social Security and Medicare
B) Social Security and Medicaid
C) Medicare and Medicaid
D) Medicare and the ACA

Accepted Answer

Social Security and Medicare are the two largest U.S. statutory programs in terms of both size and cost to employers and employees. As of 2021, the combined cost of these two programs exceeds $2.5 trillion annually. Social Security provides retirement, disability, and survivor benefits to eligible workers and their families, while Medicare provides health insurance to people aged 65 and over, as well as some younger people with certain disabilities. Medicaid, another government healthcare program, provides coverage to low-income individuals and families and is not as large or costly as Social Security and Medicare. The Affordable Care Act (ACA) is primarily focused on expanding access to healthcare and insurance coverage but does not have the same size or cost as Social Security and Medicare.

Question 15

While most employees take a job because of the advertised level of pay,many stay with a job because of the ______ associated with it.
A) benefits package
B) variable pay
C) experience rating
D) contribution plan

Accepted Answer

Benefits such as health insurance, retirement plans, paid time off, and other perks are often a major factor in job satisfaction and employee retention. These benefits can provide a sense of financial security, work-life balance, and overall well-being, making them crucial for retaining employees.

Question 16

An individual must earn ______ "credits" in their lifetime in order to become eligible for Social Security retirement.
A) 40
B) 80
C) 20
D) 75

Accepted Answer

In order to become eligible for Social Security retirement benefits, an individual must earn 40 "credits" in their lifetime. These credits are based on a certain amount of earned income and are earned over time.

Question 17

Whitney earns about $100,000 a year.She and her employer both pay 6.2% of Whitney's earnings into ______.Whitney's portion is withheld from her paycheck.
A) Social Security
B) Medicare
C) unemployment insurance
D) retirement

Accepted Answer

Both Whitney and her employer pay into Social Security, which is a government program that provides retirement, disability, and survivor benefits to eligible individuals.

Question 18

Sasha's organization offers employees a choice of different benefits.Since Sasha has two children,she selected childcare vouchers and sick child coverage from the list of benefits.The benefits managers at Sasha's organization seem to have considered the importance of ______ in providing benefits programs.
A) amount
B) mix
C) flexibility
D) vesting

Accepted Answer

Flexibility is important in benefits programs as it allows employees to choose options that best suit their personal needs, such as childcare vouchers and sick child coverage for Sasha.

Question 19

The Social Security and Medicare group of programs cost more than ______% of all money the federal government received in 2016.
A) 10
B) 21
C) 34
D) 46

Accepted Answer

In 2016, the Social Security and Medicare group of programs accounted for more than 46% of all federal government revenue, highlighting the significant portion of the budget these entitlement programs consume.

Question 20

Old-Age,Survivors,and Disability Insurance is the formal name for what is generally called ______.
A) Welfare
B) Medicare
C) Social Security
D) Medicaid

Accepted Answer

Old-Age, Survivors, and Disability Insurance is commonly referred to as Social Security.

Quiz 13: Employee Benefits

At current rates,Old Age,Survivors,and Disability Insurance will exhaust its funds in ______.

Once a benefit becomes part of the employee's compensation package,it is ______ to delete that benefit in the future.

Employee benefits average ______ % of total employee compensation cost in U.S.organizations.

______ benefits are the type of benefits that are required by law.

______ provides basic medical benefits,but it was not designed to be a full-coverage program.

According to expectancy theory,______ is important in a benefits package because it gives employees the benefits that are of value to them.

______ provide an incentive to employees to continue working for an organization because they feel as if they are being cared for by the organization.

Individuals become eligible for ______ at the same time as their eligibility for Social Security retirement begins.

Obiajulu and her employer both pay 1.45% of Obiajulu's earnings into ______.Obiajulu's portion is withheld from her paycheck.

In examining her organization's benefits package,Petra has determined that the organization can provide a 40% premium to direct compensation for the cost of benefits.What aspect of providing a benefits program is Petra considering?

______ is an insurance program designed to provide medical treatment and temporary payments to employees who cannot work because of an employment-related injury or illness.

Providing ______ can reduce the tax burden on both the organization and the individual.

By far the largest of the U.S.statutory programs,in both size and cost to employers (and employees) ,are ______.

While most employees take a job because of the advertised level of pay,many stay with a job because of the ______ associated with it.

An individual must earn ______ "credits" in their lifetime in order to become eligible for Social Security retirement.

Whitney earns about $100,000 a year.She and her employer both pay 6.2% of Whitney's earnings into ______.Whitney's portion is withheld from her paycheck.

The Social Security and Medicare group of programs cost more than ______% of all money the federal government received in 2016.

Old-Age,Survivors,and Disability Insurance is the formal name for what is generally called ______.