Which of the following usually increases the costs of benefits?
A) outsourcing
B) the adoption of flexible benefits
C) an increase in base pay
D) the use of deductibles

Question

Quizplus · Accepted Answer

an increase in base pay can lead to an increase in the costs of benefits because many benefits are calculated as a percentage of base pay, such as retirement contributions or life insurance coverage. As base pay increases, so do these costs. Outsourcing can potentially decrease costs, flexible benefits can actually help control costs by allowing employees to choose which benefits they need, and deductibles shift some costs to employees rather than increasing the costs overall.

Which of the Following Usually Increases the Costs of Benefits