Quiz 12: Indirect Compensation: Employee Benefit Plans
Business
Q 1Q 1
Companies on average pay approximately 40 of payroll on overall employee benefits and 20 percent on voluntary benefits.
Free
True False
True
Q 2Q 2
A mature firm with well-established products and substantial market share will probably offer low base pay and benefits but high incentives.
Free
True False
False
Q 3Q 3
The perceived value of benefits rises when employers introduce choice through a flexible benefits package.
Free
True False
True
Q 4Q 4
In determining the competitiveness of benefits,senior management tends to focus mainly on value,while employees are more interested in cost.
Free
True False
Q 5Q 5
Achieving cost competitiveness assures that employees will perceive the benefits program as valuable to them.
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True False
Q 6Q 6
Income-maintenance laws were enacted to provide employees and their families with income security in case of death,disability,unemployment,or retirement.
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True False
Q 7Q 7
Under COBRA,following a worker's death or divorce,the employee's family has the right to buy group-rate health insurance for as long as three years.
Free
True False
Q 8Q 8
In providing health and cash payments to disabled workers and their families,workers' compensation is second in size only to the nation's pension fund.
Free
True False
Q 9Q 9
Disability coverage provides a supplemental one-time payment when death is accidental,or when employees are disabled.
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True False
Q 10Q 10
LTD recipients typically receive no more than 60 percent of their base pay,until they begin receiving pension benefits.
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True False
Q 11Q 11
Although disability benefits traditionally were divided into salary continuation,short-term disability,and long-term disability,combined disability management programs now merge all three.
Free
True False
Q 12Q 12
Because U.S.employers pay most of the nation's health care premiums,over time such increases may make them less competitive in global markets.
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True False
Q 13Q 13
An aging population and an increase in obesity are part of the major factors driving increases in the cost of healthcare.
Free
True False
Free
True False
Q 15Q 15
In an effort to reform the U.S.health-care system,Congress passed the Patient Protection and Affordable Care Act in 2010.
Free
True False
Q 16Q 16
The Patient Protection and Affordable Care Act of 2010 requires states to create and maintain health care exchanges in which health insurance providers compete for customers on equal terms.
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True False
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True False
Free
True False
Q 19Q 19
To ensure covered workers will receive their accrued benefits even if they get fired,ERISA created the Pension Benefit Guaranty Corporation.
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True False
Q 20Q 20
An incentive for employers to begin and maintain pension plans is that the government defers taxes on the pension contributions and their earnings.
Free
True False
Q 21Q 21
Regardless of whether a plan is a defined-benefit plan or defined-contribution plan,employees will not know what the purchasing power of their pension checks will be,because interest rates are variable.
Free
True False
Q 22Q 22
Cash balance plans are portable when an employee leaves,but they do not vest any sooner than traditional pension plans.
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True False
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True False
Q 24Q 24
Social Security is a pay-as-you-go system.Payroll taxes earned by current workers are distributed to pay benefits for those who are already retired.
Free
True False
Q 25Q 25
States have the option to use state unemployment compensation resources to make full wage replacement available to parents who leave employment after the birth or adoption of a child.
Free
True False
Q 26Q 26
Every unemployed worker's benefits are "charged" against one or more companies; therefore the more money paid out on behalf of a firm,the higher is the unemployment insurance rate for that firm.
Free
True False
Q 27Q 27
National survey data now indicate that people are more attached and committed to organizations that offer family-friendly policies because they benefit personally from the policies.
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True False
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True False
Q 29Q 29
The theory underlying the cafeteria benefits approach is simple: Instead of all workers at a company getting the same benefits,each worker can pick and choose among alternative options cafeteria style.
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True False
Q 30Q 30
A growing number of companies are giving employees direct access to information about their direct compensation,but not indirect compensation.
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True False
Q 31Q 31
Which of the following should be considered by firms when determining their overall benefit plan?
A) Are the type and level of benefits consistent with our long-term business plan
B) Are we meeting the needs of employees
C) What legal requirements must we satisfy
D) All of the above
Free
Multiple Choice
Q 32Q 32
Which law offers full coverage for retirees,dependent survivors,and disabled persons insured by 40 quarters of payroll taxes on their past earnings or earnings of heads of households?
A) Federal Unemployment Tax Act
B) Social Security Act
C) Workers' compensation Act
D) Employee Retirement Income Security Act
Free
Multiple Choice
Q 33Q 33
Which act extended the 1.45% Medicare payroll tax to all wages and self-employment income?
A) Balanced Budget Act
B) Administrative Procedure Act
C) Omnibus Budget Reconciliation Act
D) National Health Planning and Resources Development Act
Free
Multiple Choice
Q 34Q 34
The benefits of this act are based on a percentage of average weekly earnings and are available for up to 26 weeks.
A) Administrative Procedure Act
B) Social Security Act
C) Balanced Budget Act
D) Federal Unemployment Tax Act
Free
Multiple Choice
Q 35Q 35
Generally,employees of nonagricultural,private-sector firms are entitled to benefits for work-related accidents and illnesses leading to temporary or permanent disabilities under:
A) workers' compensation.
B) ERISA.
C) the Social Security Act.
D) the Federal Unemployment Tax Act.
Free
Multiple Choice
Q 36Q 36
A recent MetLife survey showed that 73 percent of employees who were highly satisfied with their benefits are also satisfied with their ________?
A) Salaries
B) Jobs
C) Supervisors
D) Pensions
Free
Multiple Choice
Q 37Q 37
Which act covers private-sector employees over age 21 enrolled in noncontributory (100% employer-paid)retirement plans who have one year's service?
A) COBRA
B) HIPAA
C) ERISA
D) ADA
Free
Multiple Choice
Q 38Q 38
The doctrine of _____ holds that an individual must pay taxes on benefits with monetary value when he/she receives them.
A) antidiscrimination
B) constructive receipt
C) equal benefits taxation
D) tax shifting
Free
Multiple Choice
Q 39Q 39
The anti-discrimination rule holds that employers can obtain tax advantages only for those benefits that do not discriminate in favor of:
A) white males.
B) stockholders.
C) highly compensated employees.
D) younger employees.
Free
Multiple Choice
Q 40Q 40
In determining the competitiveness of benefits,senior management tends to focus mainly on:
A) cost.
B) value.
C) security.
D) worth.
Free
Multiple Choice
Free
Multiple Choice
Q 42Q 42
An individual or group health plan that provides or pays the cost of medical care may not use or disclose:
A) An employers ability to deny coverage for a pre-existing condition.
B) Prohibiting discrimination.
C) Protected health information.
D) None of the above.
Free
Multiple Choice
Q 43Q 43
The law requiring companies with at least 20 employees to make medical coverage available at group insurance rates for up to 18 months after an employee leaves the job is:
A) ERISA.
B) HIPAA.
C) COBRA.
D) FMLA.
Free
Multiple Choice
Q 44Q 44
This law provides that,following a worker's death or divorce,the employee's family has the right to buy group-rate health insurance for as long as three years.
A) Health Insurance Portability and Accountability Act
B) Consolidated Omnibus Budget Reconciliation Act
C) Employee Retirement Income Security Act
D) Fair Labor Standards Act
Free
Multiple Choice
Q 45Q 45
Which of the following allows companies to make medical coverage available at group rates for as long as 18 months after the employee leaves?
A) COBRA
B) HIPAA
C) ERISA
D) ADA
Free
Multiple Choice
Q 46Q 46
Which of the following requires that health plans not disclose patient identifiers?
A) salary information
B) cost of insurance premiums
C) spousal information
D) protected health information
Free
Multiple Choice
Q 47Q 47
This type of insurance is usually yearly renewable term insurance and typical coverage is one to two times the employee's annual salary.
A) Common stock
B) Workers' compensation
C) Protected health
D) Group life
Free
Multiple Choice
Q 48Q 48
_____ programs typically provide a core of basic life coverage and then permit employees to choose greater coverage.
A) Flexible benefit
B) Defined-benefit
C) Defined-contribution
D) Point-of-service
Free
Multiple Choice
Q 49Q 49
Which of the following is NOT an area of payment covered by workers' compensation?
A) Payments to employers while injured workers are recovering
B) Payments to replace lost wages
C) Medical treatment and rehabilitation costs
D) Retraining to perform a different type of work
Free
Multiple Choice
Free
Multiple Choice
Q 51Q 51
All state workers' compensation laws share all of the following features EXCEPT:
A) all job-related injuries and illnesses are covered.
B) coverage is provided regardless of who caused the injury.
C) a worker's loss is usually covered fully by the insurance program.
D) payments are usually made through an insurance program.
Free
Multiple Choice
Q 52Q 52
The U.S.health insurance system is based primarily on group coverage provided by:
A) employees.
B) employers.
C) the government.
D) communities.
Free
Multiple Choice
Q 53Q 53
The 2010 plan intended to reform the U.S.healthcare system is called the:
A) Preferred Provider Organization Act
B) Health Maintenance Organization Act
C) Patient Protection and Affordable Care Act
D) Equal Pay Act
Free
Multiple Choice
Q 54Q 54
What is driving the increasing costs of healthcare?
A) Passage of the health care exchanges.
B) Aging population and an increase in obesity.
C) Increasing numbers of legal immigrants.
D) Rising cost of childcare.
Free
Multiple Choice
Q 55Q 55
The "gatekeeper" in a "managed care" health insurance plan is the:
A) primary care physician.
B) insurance cost monitor.
C) the employee.
D) the HR representative.
Free
Multiple Choice
Q 56Q 56
When given a choice,employees are moving toward _____,even though they are more expensive,showing that they are willing to pay more for freedom of choice.
A) CDHPs
B) POSs
C) HMOs
D) PPOs
Free
Multiple Choice
Q 57Q 57
In this type of managed care health insurance plan,there is no deductible,and the nominal fees generally range from $5 to $30 per visit depending on the service performed.
A) Preferred provider organization
B) Medical underwriting
C) Health maintenance organization
D) Point-of-service plan
Free
Multiple Choice
Q 58Q 58
In this type of managed care health insurance plan,in-network care comes from a specified group of physicians and hospitals,patients can pay extra to get care from outside the network,and there generally is no gatekeeper.
A) Flexible spending account
B) Preferred provider organization
C) Health reimbursement account
D) Health maintenance organization
Free
Multiple Choice
Q 59Q 59
Which act was enacted to protect the interests of employee-benefit-plan participants and their beneficiaries by requiring the disclosure to them of financial and other information concerning the plan?
A) Employee Retirement Income Security Act
B) Health Insurance Portability and Accountability Act
C) Consolidated Omnibus Budget Reconciliation Act
D) Family and Medical Leave Act
Free
Multiple Choice
Q 60Q 60
Money set aside by employers to cover _____ has become the nation's largest source of capital.
A) workers' compensation claims
B) employee benefits
C) year-end tax obligations
D) pension obligations
Free
Multiple Choice
Q 61Q 61
Which agency acts as an insurance company,collecting annual premiums from companies with defined-benefit plans that spell out specific payments upon retirement?
A) Federal Deposit Insurance Corporation
B) Employee Benefits Security Administration
C) Pension Benefit Guaranty Corporation
D) Federal Retirement Thrift Investment Board
Free
Multiple Choice
Q 62Q 62
In 2010 PBGC paid about _____ in benefits owed to retirees and the surviving beneficiaries because their pension plans could not.
A) $1 million
B) $35 million
C) $2 billion
D) $5.5 billion
Free
Multiple Choice
Q 63Q 63
In regard to pensions,employees who have not worked at a company long enough to be _____ are not entitled to any benefits.
A) vested
B) promoted
C) given a performance review
D) join the union
Free
Multiple Choice
Q 64Q 64
The type of private pension plan in which an employer promises to pay a retiree a stated pension is a:
A) defined-benefit plan.
B) defined-performance plan.
C) defined-retirement plan.
D) defined-contribution plan.
Free
Multiple Choice
Q 65Q 65
The type of pension plan that offers all employees the same,steady annual credit toward an eventual pension is a(n):
A) equity-purchase plan.
B) cash-balance plan.
C) defined benefit plan.
D) profit sharing plan.
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Multiple Choice
Q 66Q 66
The average retiree gets about _____ percent of his/her retirement income from Social Security.
A) 12
B) 40
C) 67
D) 95
Free
Multiple Choice
Q 67Q 67
_____ is not legally required,and,because of unemployment compensation,many firms do not offer it.
A) Retirement pay
B) Short-term disability
C) Severance pay
D) Cost shifting
Free
Multiple Choice
Q 68Q 68
Limiting medi-care payments to what Medicare would have paid for in the absences of a group health plan is another example of what is referred to as:
A) cost attainment
B) flag posting
C) cost shifting
D) early medical retirement benefits
Free
Multiple Choice
Q 69Q 69
The methods for costing benefits include:
A) Annual cost of benefits for all employees
B) Cost per employees per year
C) Cents per hour
D) All of the above
Free
Multiple Choice
Q 70Q 70
Which of the following is not an approach widely used to express the cost of employee benefits and services?
A) National salary index
B) Cents per hour
C) Percentage of payroll
D) Cost per employee per year
Free
Multiple Choice
Free
Essay
Q 72Q 72
What is workers' compensation? Mention some common features that all state workers' compensation laws share.
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Essay
Q 73Q 73
Describe some measures that firms have taken to gain tighter management control over the cost of health care.
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Essay
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Essay
Q 79Q 79
Once viewed as an expense with little return,what type of policies are now endorsed by a growing number of executives as an investment that pays dividends in morale,productivity,and ability to attract and retain top-notch talent?
Free
Short Answer
Q 80Q 80
Why do many companies offer domestic partner benefits,regardless of the employee's sexual orientation and marital status?
Free
Essay