Deck 13: Benefits and Services

Question 1

Which of the following benefits is required by federal or state law?

A)unemployment insurance
B)disability insurance
C)health insurance
D)pensions

Answer 1

A
Explanation: A)Federal law requires that employers provide unemployment insurance, but disability insurance, health insurance, and pensions are optional for employers.

Question 2

Keith works as a construction foreman, and he is viewed as a reliable, competent employee. Keith was recently injured in a car accident while on vacation, and his injuries are so severe that he will not be able to return to work. Which of the following would most likely provide Keith with benefits?

A)group life insurance
B)unemployment insurance
C)workers' compensation insurance
D)supplemental unemployment benefits

Answer 2

B
Explanation: B)Unemployment insurance provides benefits if a person is unable to work through no fault of his or her own. Workers' compensation is for on-the-job injuries, and supplemental unemployment benefits provide a guaranteed annual income when certain industries are forced to shut down temporarily. Keith did not die, so group life insurance would provide no benefits.

Question 3

Which of the following is NOT an employer cost associated with granting leave to employees under the Family and Medical Leave Act?

A)paying temporary workers
B)recruiting replacement workers
C)paying employee for time not worked
D)compensating for lower productivity of new workers

Answer 3

C
Explanation: C)FMLA leaves are usually unpaid, but they're not costless. The costs associated with hiring temporary replacements, training them, and compensating for their lower productivity can be considerable.

Question 4

Health care costs have dropped significantly in recent years due to government intervention and the increased use of HMOs.

Question 5

The Family and Medical Leave Act ________.

A)provides guidelines regarding what rates of return employers should use in computing their pension plan values
B)ensures that an employer must grant an employee up to 12 weeks of leave in a 12-month period for the birth or care of a newborn child, placement of a child for adoption, to care for a spouse, child, or parent with a serious health condition, or to care for the employee's own serious health condition
C)prohibits an employer's health plan from using incentives to encourage employees to leave the hospital after childbirth after less than the legislatively-determined minimum stay
D)sets minimum requirements for protecting individuals' health-care data accessibility and confidentiality

Question 6

Which of the following terms refers to benefits for time not worked, such as unemployment insurance, vacation and holiday pay, and sick pay?

A)supplemental pay benefits
B)employee assistance
C)financial incentives
D)premium benefits

Question 7

What is the maximum number of weeks of unpaid leave that an employee may take under the Family and Medical Leave Act?

A)six
B)ten
C)twelve
D)sixteen

Question 8

To be eligible for leave under the Family and Medical Leave Act, an employee must have worked ________ hours during the past twelve consecutive months.

A)850
B)1000
C)1250
D)1600

Question 9

Which of the following requires employers to treat women affected by pregnancy, childbirth, or related medical conditions the same as any employee not able to work, with respect to all benefits?

A)Family and Medical Leave Act
B)Pregnancy Discrimination Act
C)Comprehensive Omnibus Budget Reconciliation Act
D)Health Insurance Portability and Accountability Act

Question 10

All of the following are typical reasons that employers provide severance pay when downsizing EXCEPT ________.

A)reducing litigation chances
B)ensuring good public relations
C)reassuring remaining employees
D)adhering to government requirements

Question 11

Nonfinancial payments like health and life insurance, pensions, time off with pay, and child care facilities are examples of ________.

A)competency-based incentives
B)variable pay
C)benefits
D)bonuses

Question 12

The indirect financial and nonfinancial payments employees receive for continuing their employment with a company are called ________.

A)compensation
B)salary
C)benefits
D)remuneration

Question 13

Elizabeth works at an auto manufacturing firm that recently shut down for five weeks to change machinery. However, during the shutdown, Elizabeth was able to maintain her standard of living because of the firm's ________.

A)supplemental unemployment benefits
B)workers' compensation insurance
C)disability insurance
D)severance pay

Question 14

Eric has worked full-time for a large manufacturing company for over three years. Eric and his wife have recently adopted a baby, and Eric wants to take time off from work to care for the child. Which of the following laws most likely applies to Eric's situation?

A)Pregnancy Discrimination Act
B)Family and Medical Leave Act
C)Title VII of the Civil Rights Act
D)Health Insurance Portability and Accountability Act

Question 15

Employee benefits account for a little over one-third of wages and salaries.

Question 16

Benefits are an important aspect of employee compensation, and they involve the direct financial payments employees receive for remaining with an employer.

Question 17

Which of the following provides pay to an employee when he or she is temporarily out of work because of illness?

A)sick leave
B)severance pay
C)supplemental pay
D)workers' compensation

Question 18

Rita was terminated from her position as an accounts manager with Carson Financial, Inc. On her last day at work, Rita received a check for $3,500. Which of the following did Rita most likely receive from Carson Financial?

A)merit pay
B)annual bonus
C)severance pay
D)performance pay

Question 19

All of the following are true statements regarding the application of the Family and Medical Leave Act EXCEPT ________.

A)employers must receive advance notice and medical certification from the employee
B)eligible employees must have worked for the employer for at least one year
C)employees must be employed at job sites with at least 50 employees
D)up to 12 weeks must be granted in a 12-month period

Question 20

All of the following benefits are required by federal or state law EXCEPT ________.

A)workers' compensation
B)unemployment insurance
C)disability insurance
D)maternity leave

Question 21

All of the following are the most likely reasons that mental health costs are rising EXCEPT ________.

A)widespread drug and alcohol problems
B)more mental health referrals by specialists
C)mental health claims triggering health care claims
D)laws requiring employers to offer mental health benefits

Question 22

Legally required benefits, such as unemployment insurance, are more costly to employers than health insurance.

Question 23

Which of the following is a popular workers' compensation cost-control measure that involves coordinating the medical care and health insurance coverage for each injured employee?

A)nurse management
B)case management
C)health maintenance
D)medical rehabilitation

Question 24

Who contributes funds for workers' compensation benefits?

A)state governments
B)federal government
C)insurance providers
D)employers

Question 25

Supplemental pay benefits can provide employees with time-off-with-pay for jury duty, vacations, funerals, and military responsibilities.

Question 26

Which health benefit is offered by almost all employers?

A)vision insurance
B)chiropractic insurance
C)prescription drug coverage
D)health maintenance organization

Question 27

What is sick leave? Why is sick leave problematic for many employers? Discuss some ways organizations can reduce sick leave related costs.

Question 28

Most employees in America receive fourteen days of leave after working for a company for one year.

Question 29

Which of the following conditions must be met for an injured employee to earn workers' compensation from the employer?

A)The employee was injured while on the job.
B)The employee suffered the injury through no fault of his or her own.
C)The employee worked full-time for the employer for a minimum of 12 months.
D)The employee received adequate job training to understand the position's requirements.

Question 30

Federal law requires private sector employers to grant a minimum amount of paid vacation leave.

Question 31

________ are groups of health care providers that contract with employers, insurance companies, or third-party payers to provide medical care services at a reduced fee.

A)PPOs
B)HMOs
C)DMOs
D)ADDs

Question 32

Documenting employee absences, conducting exit interviews, and requiring written approval for personal leave are employer methods for controlling unemployment insurance costs.

Question 33

Which of the following is a prepaid health care system that provides medical services for employees who pay a nominal fee?

A)PPO
B)HMO
C)DMO
D)ESOP

Question 34

Since leaves associated with the Family and Medical Leave Act do not require employers to pay salaries, employers are not financially affected.

Question 35

Employers must provide employees who have work-related injuries with all of the following EXCEPT ________.

A)cash benefits
B)medical services
C)hospital services
D)time off with full pay

Question 36

The stipulations of the Family and Medical Leave Act apply to private employers of 50 or more employees.

Question 37

Which of the following provides income and medical benefits to employment-related accident victims or their dependents?

A)severance pay
B)family and medical leave
C)workers' compensation
D)health insurance benefits

Question 38

The primary difference between health maintenance organizations and preferred provider organizations is that ________.

A)PPOs are less costly than HMOs
B)HMOs are more flexible than PPOs
C)HMOs offer mental health services while PPOs do not
D)PPOs allow patients to choose from a list of doctors without referrals

Question 39

What benefits are required by federal or state laws? What benefits are discretionary on the part of employers? Describe the basic nature of several of these benefits.

Question 40

Pooled paid leave plans combine sick leave, vacation, and personal days into a single leave pool and have been blamed for increasing employee absenteeism.

Question 41

Which of the following provides lower rates for the employer or employee and includes all employees regardless of health or physical condition?

A)workers' compensation insurance
B)group life insurance
C)disability insurance
D)pension plans

Question 42

COBRA requires most private employers to continue to make health benefits available to terminated or retired employees and their families for a period of time, generally ________ months.

A)6
B)12
C)18
D)24

Question 43

Which of the following sets minimum mental health care benefits?

A)Civil Rights Act
B)Employee Mental Health Act
C)Americans with Disabilities Act
D)Mental Health Parity Act

Question 44

If an employee is injured at work due to a blatant disregard for company safety policies, the company is not required to pay workers' compensation.

Question 45

Which of the following requires that most private employers continue to make health benefits available to terminated or retired employees and their families for a period of time?

A)FMLA
B)COBRA
C)OSHA
D)ADA

Question 46

All of the following are health care cost-control methods used by employers EXCEPT ________.

A)requiring employees to pay high premiums
B)benefits purchasing alliances
C)requiring disability insurance
D)encouraging medical tourism

Question 47

In addition to the funds contributed by employers, each state also contributes to funds for workers' compensation.

Question 48

Employers are prohibited from inquiring about an applicant's past workers' compensation history by the Americans with Disabilities Act.

Question 49

About how many million people work part-time in the United States?

A)1
B)5
C)11
D)19

Question 50

Which of the following best describes the purpose of the Newborn Mother's Protection Act?

A)guarantee pension plans and health insurance coverage for female employees who have recently given birth
B)prohibit employer health plans from using incentives to encourage employees to leave the hospital after childbirth sooner than legally required
C)prevent employers from discriminating against women affected by pregnancy or childbirth in respect to benefits coverage
D)set minimum requirements for accessing the health records of female employees

Question 51

The Consolidated Omnibus Budget Reconciliation Act ________.

A)prohibits an employer's health plan from using incentives to encourage employees to leave the hospital after childbirth after less than the legislatively-determined minimum stay
B)limits the ability of health plans to set annual or lifetime maximums on mental and nervous disorder benefits
C)requires that most private employers continue to make health benefits available to terminated or retired employees and their families for a period of time
D)sets minimum requirements for protecting individuals' health-care data accessibility and confidentiality

Question 52

Which of the following is NOT a true statement about the Protection and Affordable Care Act of 2010?

A)Employers must offer health insurance coverage to employees who work at least 30 hours per week.
B)Employers will be required to pay a 20% excise tax on high-cost health insurance plans.
C)Contributions to health care flexible spending accounts have been capped at $2,500.
D)Health plans with dependent coverage must expand eligibility up to age 26.

Question 53

In which of the following can employers and employees deposit pretax wages to pay for non-catastrophic medical expenses?

A)health maintenance organizations
B)health benefits funds
C)health savings accounts
D)deferred savings plans

Question 54

The Consolidated Omnibus Budget Reconciliation Act requires the government to provide health insurance to terminated or retired employees and their families through the Medicare system.

Question 55

In most states, workers' compensation benefits have no time limit, so injured employees may receive monetary and medical compensation for the duration of their employment.

Question 56

Which of the following represents the largest proportion of all reported disabilities?

A)respiratory diseases
B)cardiovascular diseases
C)mental illness
D)cancer

Question 57

All of the following are preventive services offered by employers as part of their wellness programs EXCEPT ________.

A)anti-smoking incentives
B)low-cost immunizations
C)case management services
D)stress management

Question 58

The Medicare Modernization Act allows employers to establish tax-free health savings accounts.

Question 59

What policy issues must employers address when developing benefit plans? What federal laws influence employers' pension and health plans?

Question 60

Disability insurance provides income protection for salary loss due to illness or accident.

Question 61

All of the following are characteristic of 401(k)plans EXCEPT ________.

A)categorized as a defined contribution plan
B)deduction replaces Social Security tax
C)pretax salary deductions invested
D)considered a savings and thrift plan

Question 62

Medicare provides a wide range of health services to people ________ or over.

A)55
B)60
C)65
D)70

Question 63

Social Security provides health benefits to terminated employees and their families for 18 months following the employee's separation from the firm.

Question 64

Which of the following refers to a plan in which employees contribute a portion of their earnings to a fund and the employer typically matches the contribution in whole or part?

A)group investment plan
B)401(k)plan
C)deferred profit-sharing plan
D)employee stock ownership plan

Question 65

Malcolm is interviewing for a new job and he is evaluating the quality of the pension plans offered for each company he is considering. One company offers a pension plan in which the company will make all contributions to the plan and will base his pension benefit on a formula linked to his pay at the time of retirement and the number of years he was with the firm. This pension plan is most likely classified as ________.

A)qualified, defined benefit
B)non-contributory, defined benefit
C)non-contributory, defined contribution
D)contributory, defined benefit

Question 66

Which of the following requires that pension rights be vested and protected by the Pension Benefits Guarantee Corporation?

A)Economic Growth and Tax Relief Conciliation Act
B)Employee Retirement Income Security Act
C)Job Creation and Worker Assistance Act
D)Social Security Act

Question 67

Which of the following provides a fixed sum when employees reach a predetermined retirement age or can no longer work due to disability?

A)workers' compensation
B)Social Security
C)pension plan
D)group life insurance

Question 68

A plan in which the employer's contribution to employees' retirement savings funds is specified is known as a ________.

A)portable plan
B)default investment plan
C)defined benefit pension plan
D)defined contribution pension plan

Question 69

How is the Social Security program funded?

A)sale of government bonds
B)tax on employee wages
C)tax on homeowners
D)tax on luxury goods

Question 70

Social Security offers all of the following EXCEPT ________.

A)survivor's benefits for those insured under the Social Security Act
B)disability payments to employees who become totally disabled
C)tax refunds for retirees who are 55 and older
D)Medicare program administration

Question 71

Because health care coverage is one of the most expensive benefits employers provide, many employers are trying to cut costs. What are some strategies for minimizing costs associated with employee health care?

Question 72

When an employer makes all of the contributions to the pension plan, the pension plan is classified as ________.

A)qualified
B)non-qualified
C)defined contribution
D)non-contributory

Question 73

All of the following characterize cash balance plans EXCEPT ________.

A)lacks portability
B)offers predictable benefits
C)considered hybrid pension plans
D)employees earn interest on contributed amounts

Question 74

A plan that contains a formula for determining retirement benefits is known as a ________.

A)defined contribution pension plan
B)defined benefit pension plan
C)cash balance plan
D)401(k)plan

Question 75

Jenny must contribute at least 5% of her annual salary to her pension plan, and her employer contributes a set amount as well. She is given choices regarding how the money is invested. When she retires, the amount she has available will depend on how much she invested herself, and the rate of return on the investments she chose. This pension plan is most likely classified as ________.

A)qualified, defined benefit
B)non-contributory, defined benefit
C)contributory, defined contribution
D)contributory, non-qualified

Question 76

Taxes on employee wages to fund Social Security apply to all earnings up to ________.

A)$46,500
B)$63,700
C)$117,000
D)$124,300

Question 77

Which of the following provides guidelines regarding what rates of return employers should use in computing their pension plan values?

A)Employee Retirement Income Security Act
B)Job Creation and Worker Assistance Act
C)Social Security Act
D)Equal Pay Act

Question 78

For individuals born in 1960 or later, the full retirement age for non-discounted Social Security benefits is ________.

A)62
B)65
C)67
D)70

Question 79

Private employers forced to downsize are required to provide COBRA coverage, and some firms offer dismissed employees severance pay. How do employers benefit from providing severance pay to dismissed employees? How do employees benefit from COBRA?

Question 80

As an HR manager, you need to control costs associated with unemployment insurance. What are steps you can take to protect your employer from paying unemployment claims for employees who were dismissed for inadequate performance?