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1. Benefits generally account for approximately 14 percent of payroll costs.
a.
True
b.
False
2. Surveys show that employees who are satisfied with their benefits are more likely to be satisfied with their jobs.
a.
True
b.
False
3. Generation Y employees are less likely to be concerned with having pensions than Baby Boomers.
a.
True
b.
False
4. Most online benefits systems are adaptable and transfer information with full security.
a.
True
b.
False
5. There has been a reduction in the number of single-parent families and two-earner couples in the workplace than there
have been in the decades past.
a.
True
b.
False
6. Typically, employees are offered a basic or core benefits package of life and health insurance, sick leave, and vacation.
a.
True
b.
False
7. Employers are tailoring their benefits programs to be family-friendly, because employees desire more work-life
balance.
a.
True
b.
False
8. A need for a new benefit should be established through consultation with employees before it is introduced.
a.
True
b.
False
9. To accommodate the individual needs of employees, it would be desirable for employers to implement a cafeteria plan.
a.
True
b.
False
10. An advantage of flexible benefit plans is that if employees make poor selections and do not use their benefits, it saves
the employer money.
a.
True
b.
False
11. Compensation specialists often see flexible benefits plans as ideal.
a.
True
b.
False
12. The Social Security Act was designed to protect workers against the loss of earnings
resulting from old age and unemployment.
a.
True
b.
False
13. Employees can sue employers who deliberately mislead them about health and welfare benefits.
a.
True
b.
False
14. When communicating benefits packages to employees, using a uniform method or technique is recommended for
consistency, so that everyone hears the same message in the same way.
a.
True
b.
False
15. Although some government programs provide money to people with partial disabilities or short-term disabilities,
Social Security does not.
a.
True
b.
False
16. Generally speaking, a firm with a record of laying off large numbers of employees will have to pay a lower rate than
those that do not.
a.
True
b.
False
17. The Social Security program is funded by a tax paid by an employer, based on an employee's earnings.
a.
True
b.
False
18. In order to qualify for Social Security benefits, all individuals must be at least 65 years of age.
a.
True
b.
False
19. To be eligible for Social Security disability benefits, an individual's disability must have existed for at least one year
and must result in, or be expected to result in, death.
a.
True
b.
False
20. Workers who are laid off are eligible for 52 weeks of unemployment insurance per occurrence.
a.
True
b.
False
21. Workers' compensation programs serve to prevent financial disaster to employees who are injured or become ill
through their work.
a.
True
b.
False
22. Workers eligible for unemployment benefits must submit an application for unemployment compensation with their
state employment agencies, register for available work, and be willing to accept any suitable employment that may be
offered to them.
a.
True
b.
False
23. One of the major problems of workers' compensation programs is that an injured employee faces substantial legal
expense to obtain a settlement.
a.
True
b.
False
24. Workers' compensation laws provide uniform compensation to disabled workers regardless of the state in which they
work.
a.
True
b.
False
25. Workers' compensation insurance rates depend on the seriousness of the occupations, each state's level of benefits for
injuries, and the company's frequency and severity of employee injury.
a.
True
b.
False
26. The Consolidated Omnibus Budget Reconciliation Act requires all employers to provide health care coverage to
employees and their spouses for 12 months following termination, death, or divorce of an employee.
a.
True
b.
False
27. Under the Family and Medical Leave Act, a convenience store owner with 20 employees is required to provide up to
12 weeks of unpaid leave to an eligible employee for medical reasons.
a.
True
b.
False
28. If an employee takes a leave of absence under the Family and Medical Leave Act, the employer must continue the
employee's medical benefits for the duration of the leave.
a.
True
b.
False
29. The Family and Medical Leave Act permits substitution of paid leave and vacation during leave.
a.
True
b.
False
30. Under the Family and Medical Leave Act, an employee returning to work does not necessarily have to be restored to
his or her original job or to an equivalent job.
a.
True
b.
False
31. As of 2014, firms that employ 50 or more people who work 30 or more hours per week but do not offer them health
insurance will have to pay a penalty to the government.
a.
True
b.
False
32. Some states provide rights to employees that are lesser than those provided by the Family and Medical Leave Act.
a.
True
b.
False
33. Health care plans only cover medical, surgical, and hospital expenses.
a.
True
b.
False
34. Today, the majority of U.S. employees get health coverage through their employers.
a.
True
b.
False
35. To contain health care costs, an employer may increase an employee's deductible amount or co-payments.
a.
True
b.
False
36. Employers pay a fixed annual fee to a health maintenance organization to cover a majority of their employees' medical
costs.
a.
True
b.
False
37. Employee costs for medical services provided by a health maintenance organization (HMO) vary according to the type
of service and how often the employee needs it.
a.
True
b.
False
38. A preferred provider organization (PPO) is a group of physicians who establish an organization that guarantees the
quality of health care provided by a health maintenance organization (HMO).
a.
True
b.
False
39. Unlike preferred provider organizations (PPOs), where employees may have little choice in the doctor they see, health
maintenance organizations (HMOs) allow employees to select their doctor of choice from a list of physicians.
a.
True
b.
False
40. Employees do not have to pay taxes on the amounts they are reimbursed under a health reimbursement account.
a.
True
b.
False
41. The "payment for time not worked" category of benefits includes all absences from work except sick leaves and
personal leaves taken by employees.
a.
True
b.
False
42. One estimate is that the "payment for time not worked" category of benefits comprises a large expenditure, which is
over 25 percent of the employer's total payroll costs.
a.
True
b.
False
43. According to the “payment for time not worked” category, all workers are guaranteed at least ten paid holidays
each year.
a.
True
b.
False
44. Severance pay plans grant employees weekly benefits in addition to state unemployment compensation.
a.
True
b.
False
45. Severance pay is considered a supplemental unemployment benefit.
a.
True
b.
False
46. Supplemental unemployment benefits are not required by law and are usually funded by an employer.
a.
True
b.
False
47. Almost all workers with health coverage receive mental health benefits as part of their plans.
a.
True
b.
False
48. It is not uncommon for larger companies to cut the health care plans they once provided their retirees.
a.
True
b.
False
49. Some firms are penalizing employees for unhealthy habits by charging them higher health care premiums for habits
such as smoking.
a.
True
b.
False
50. Paid time off for hours not worked is not mandatory in the United States.
a.
True
b.
False
51. Research shows that workers who use their vacation time are more productive and less prone to job-related burnout.
a.
True
b.
False
52. Most companies require their employees to either take their vacation days by the end of the year or forfeit them.
a.
True
b.
False
53. Today, employers are required to provide pension plans to all full-time employees.
a.
True
b.
False
54. With contributory pension plans, contributions are made jointly by employers and the government.
a.
True
b.
False
55. In a defined-contribution pension plan, the amount an employee is to receive upon retirement is specifically set forth.
a.
True
b.
False
56. Unlike defined benefit pension plan, which guarantees nothing, the 401(k) plan guarantees payments based
on years of service.
a.
True
b.
False
57. Companies may match employee contributions to a 401(k) with cash or company stock.
a.
True
b.
False
58. Typically, in a 401(k) savings plan, an employer matches an employee contribution at the rate of 25 to 50 cents for
every worker dollar contributed.
a.
True
b.
False
59. A 401(k) plan transfers responsibility for investment choices to the employee.
a.
True
b.
False
60. A 401(k) plan is also called a cash-balance pension plan.
a.
True
b.
False
61. Vesting is a guarantee of accrued benefits to participants at retirement age, provided they are currently employed.
a.
True
b.
False
62. Childcare, elder care, and extended leave policies are all examples of work-life benefits.
a.
True
b.
False
63. Employee assistance programs (EAPs) help employees mainly with relocation costs.
a.
True
b.
False
64. A common childcare benefit offered by employers is the dependent care spending account.
a.
True
b.
False
65. Mildly ill childcare facilities offer medical supervision in addition to traditional childcare arrangements.
a.
True
b.
False
66. Benefits can represent more than ______ of the employer's total payroll costs.
a.
28 percent
b.
7 percent
c.
12 percent
d.
66 percent
67. Which of the following represents the greatest expense to which a dollar of the employee compensation goes to in the
United States?
a.
Supplemental pay
b.
Paid leave
c.
Legally required benefits
d.
Health, life, and disability insurance
68. _____ enable individual employees to choose the benefits that are best suited to their particular needs.
a.
Employee self-service systems
b.
Cafeteria plans
c.
Employee wellness programs
d.
Social Security plans
69. Online benefits systems are often referred to as _____ and can result in significant cost savings in benefits
administration.
a.
cafeteria plans
b.
value-based initiatives
c.
employee self-service systems
d.
high-deductible health insurance plans
70. To obtain employee input regarding benefits packages, employers often use:
a.
performance appraisals.
b.
psychological tests.
c.
union reports.
d.
opinion surveys.
71. The communication of employee benefits information improved significantly with the passage of the _____.
a.
Employee Retirement Income Security Act
b.
Social Security Act
c.
Old Age, Survivors, and Disability Insurance Act
d.
Consolidated Omnibus Budget Reconciliation Act
72. Which of the following is NOT a method that employers commonly use to communicate benefits to employees?
a.
Brochures
b.
Word-of-mouth
c.
Social media
d.
Blogs
73. Flexible benefit plans:
a.
are offered to employees who then must purchase each benefit they select.
b.
are favored by employers because they reduce administration costs.
c.
result in wasted benefits because of the number of different types available to employees.
d.
allow employees to choose benefits suited to their needs.
74. Regardless of the medium, which of the following is NOT a general pointer for designing benefits information?
a.
Avoid complex language when describing benefits. Clear, concise, and understandable
language is a must.
b.
Explain the purpose behind a benefit and the value it offers employees. Be up front
about the pros and cons of different benefit plans.
c.
Provide numerous examples to illustrate how a benefit choice might affect different
types of employees, depending upon their personal circumstances.
d.
Avoid the use of graphics whenever possible to make the information understandable and prevent confusion.
75. When communicating benefits programs to employees use:
a.
correct legal language to avoid subsequent liability.
b.
one, uniform method to communicate to all employees.
c.
multiple media techniques.
d.
graphics and presentation software to conceal unpleasant news.
76. According to the Social Security Administration, in 2014, about _____ people received retirement survivors and
disability benefits from Social Security.
a.
100 million
b.
75 million
c.
60 million
d.
25 million
77. With a diverse workforce, more employers are willing to provide benefits to employees who establish a:
a.
dual taxing relationship.
b.
joint employment status.
c.
codependent relationship.
d.
domestic partnership.
78. A standard definition of domestic partnership includes all of the following EXCEPT:
a.
a requirement that the couple live together.
b.
a specification of financial interdependence.
c.
a requirement that the relationship be a permanent one.
d.
a minimum term of cohabitation requirement.
79. Employees desiring domestic companion benefits typically must sign:
a.
a writ of Common Domestic Marriage.
b.
an Affidavit of Domestic Partnership.
c.
an Affidavit of Residency within their state of residence.
d.
a waiver of legal liability.
