Deck 11: Legally Required Benefits

Question 1

To receive OASDI disability benefits,Sung Lee's disability would have to be expected to last at least how long?

A) 6 months
B) 12 months
C) 3 months
D) 18 months

Answer 1

B

Question 2

To be fully insured under OASDI,an employee would have to work at least how long?

A) 24 months
B) 5 years
C) 10 years
D) 12 months

Answer 2

C

Question 3

What is the only state that requires employee contributions under the Federal Unemployment Tax Act (FUTA)?

A) Michigan
B) Florida
C) Alaska
D) California

Answer 3

C

Question 4

Medicare Part A is based on what type of health care option?

A) preferred provider plan
B) medical savings account
C) managed care plan
D) fee-for-service

Question 5

Which of the following is covered by Medicare Part A?

A) home health care
B) IV drugs
C) surgery expenses
D) doctor's bills

Question 6

In 2009,Carnation Candles had 100 employees.Approximately how much did the legally required benefits cost the company that year?

A) $650,000
B) $580,000
C) $890,000
D) $440,000

Question 7

In 2011,how much would you have to earn to qualify for one quarter of credit for OASDI coverage?

A) $625 for each quarter
B) $760 for each quarter
C) $920 for each quarter
D) $1,120 for each quarter

Question 8

What were the Medicare Part A monthly premiums in 2011?

A) $450
B) $250
C) $600
D) $161

Question 9

Medicare Select is one of the choices under which Medicare Plan?

A) Medicare Prescription Drug Program
B) Medicare Advantage
C) Medigap
D) Medicare+Choice

Question 10

The average monthly benefit for all retired workers earning old age benefits as of June 2010 was how much?

A) $425
B) $780
C) $1,170
D) $1,712

Question 11

Which Medicare plan offers enrollees lower premiums in exchange for limiting their choice of health care providers?

A) Medicare+Choice
B) Medigap
C) Medicare Select
D) Medicare Advantage

Question 12

In 2022,how old will Cary have to be to receive full Social Security benefits?

A) 57
B) 62
C) 65
D) 67

Question 13

How often will Jill receive an unemployment check?

A) daily
B) weekly
C) bi-monthly
D) monthly

Question 14

If an employee wants to apply for unemployment benefits,how much will s/he have to have earned,in the last four quarters,to qualify?

A) $100 total
B) $1,000 total
C) $5,000 total
D) $10,000 total

Question 15

The first 4 quarters of the last 5 completed calendar quarters in the previous year is the base period for which benefit?

A) OASDI
B) Medicare Part A
C) unemployment insurance
D) workers' compensation

Question 16

If the CEO of a new company asked you how much per employee she will be taxed by FUTA,what would you tell her?

A) 3.5% of the first $7,000
B) 6.2% of the first $7,000
C) 6.2% of the first $10,000
D) 3.5% of the first $10,000

Question 17

Samuel's full retirement age is 65 years old and his monthly benefit at that age is $1,000.According to the Social Security Administration retirement program,if Samuel decides to take retirement as early as age 63,his monthly benefit will be

A) Equal to $1,000
B) Greater than $1,000
C) Less than $1,000 but greater than $0
D) $0

Question 18

As of March 2009,how much did U.S.companies spend per employee on average to provide legally required benefits?

A) $4,400
B) $370
C) $7,300
D) $730

Question 19

How is Medicare Part A financed?

A) payroll taxes paid only by employers
B) out-of-pocket
C) payroll taxes paid by both employers and employees
D) congressional fiat

Question 20

If Fred signs up for Medicare Part B,what percent of his medical services and supplies will be covered after he has paid his annual deductible?

A) 25%
B) 33%
C) 60%
D) 80%

Question 21

Which one of the following is a wrong belief regarding the Social Security System in the United States?

A) The viability of Social Security programs has been a subject of heated debates between Democrats and Republicans across the country.
B) The Social Security taxes paid by today's workers and their employers are used to pay the benefits for today's retirees and other beneficiaries.
C) Social Security taxes paid by employees and their employers are held in interest-bearing accounts set aside by the federal government to meet their own future retirement income needs.
D) The Social Security System is a pay-as-you-go system.

Question 22

Under the Family and Medical Leave Act,for Pierre to take time off to take care of his wife and new child how many hours would he have had to work in the previous 12 months?

A) 1,000
B) 1,250
C) 1,600
D) 800

Question 23

Both employers and employees finance Medicare Part A benefits through payroll taxes of ________ percent on all earnings.

Question 24

Medicare Prescription Drug Program will cover how much of Silvia's prescription costs,after she meets the initial $295 deductible?

A) 60%
B) 75%
C) 90%
D) 50%

Question 25

What is the only state where employers are not required to fund workers' compensation programs?

A) Michigan
B) New York
C) Texas
D) Oregon

Question 26

Violations of an ________ occur when an employer fails to reveal the exposure of one or more workers to harmful substances,or the employer does not disclose a medical condition typically caused by exposure.

Question 27

Income discontinuity caused by the ________ led to the Social Security Act as a means to protect families from financial devastation in the event of unemployment.

Question 28

The ________ is the minimum period of time an individual must be employed before becoming eligible to receive unemployment insurance under the Social Security Act of 1935.

Question 29

________ Act contains provisions to make health care more affordable and will slowly eliminate the "donut hole" coverage gap.

Question 30

MomPop's General Store can avoid paying workers' compensation taxes if it keeps its staff to less than how many employees?

A) 12
B) 50
C) 100
D) 25

Question 31

________ occurs when a worker has his or her job status negatively affected or is terminated as a result of filing a workers' compensation claim.

Question 32

This Medicare Plan was established with the passage of the Balanced Budget Act of 1997 as an alternative to the original program (parts A &B).

A) Medicare Select
B) Medicare Prescription Drug Program
C) Medicare Advantage
D) Medigap

Question 33

________ financing implies that the company assumes total costs for each discretionary benefit.

Question 34

In 2011,the OASDI tax rate was reduced by 2% for employees,which leads to a ________ percent effective tax rate for employees.

Question 35

Due to the fact that the costs of benefits has risen so dramatically in recent years,the majority of the companies decided to finance discretionary benefits using

A) noncontributory financing.
B) contributory financing.
C) employee-financed benefits.
D) employer-financed benefits.

Question 36

Thelma is on the Medicare Prescription Drug Program and has just spent over $5,100 out-of-pocket on medications,how much of the prescription costs will Medicare now cover for her?

A) 67%
B) 100%
C) 50%
D) 95%

Question 37

________ plans emphasize cost control by limiting an employee's choice of doctors and hospitals,and often pay a higher level of benefits if health care is received from approved providers.

Question 38

________ specify insurance rates based on classifications of businesses.

Question 39

Which Medicare plan allows enrollees to use medical savings accounts?

A) Medicare Advantage
B) Medigap
C) Medicare Select
D) Medicare Prescription Drug Program

Question 40

Mary works at a pharmaceutical company as a customer service representative.Her employer allows her to choose the set of benefits she will receive on top of preestablished sets of benefits such as medical insurance,and term life insurance.The company gave her credits equal to 6% of her salary with which she decided to purchase dental and vision insurance.This pharmaceutical company uses what kind of benefits plan?

A) cafeteria plan
B) flexible benefits plan
C) employee-financed plan
D) core plus option plan

Question 41

Explain disability benefits under OASDI.Compare it with the workers' compensation.

Question 42

Briefly discuss the components of legally required benefits.How can HR managers minimize the costs that are associated with legally required benefits?

Question 43

How does a state determine if an individual is eligible for unemployment insurance benefits?