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80. Which of the following benefits is NOT a legally required employee benefit?
a.
Employer contributions to Social Security
b.
Employer contributions to unemployment insurance
c.
Employer contributions to workers’ compensation insurance
d.
Employer contributions to minimum life insurance
81. Which of the following groups of employees is NOT covered by Social Security insurance?
a.
Railroad workers
b.
Clergy
c.
Self-employed persons
d.
Most military personnel
82. The Social Security insurance program is funded by:
a.
employer contributions.
b.
Old Age, Survivors, and Disability Insurance (OASDI).
c.
employee contributions with matching employer contributions.
d.
employee contributions and general tax funds.
83. Which of the following is NOT a benefit covered under Social Security insurance?
a.
Old-age insurance benefits
b.
Disability benefits
c.
Short-term disability caused by a job-related accident
d.
Survivors' benefits
84. Tax revenues derived from Social Security pay for each of the following benefits, EXCEPT:
a.
disability benefits.
b.
unemployment.
c.
retirement.
d.
survivors’ benefits.
85. The amount of survivors' insurance benefits paid by Social Security is:
a.
based on the cause of death.
b.
based on a formula that takes into consideration the number of remaining years the deceased worker had to
work until retirement.
c.
fixed by law and adjusted only by the cost-of-living.
d.
based on the worker's lifetime earnings covered by Social Security.
86. Individuals can receive Social Security benefits as early as age:
a.
58.
b.
62.
c.
65.
d.
67.
87. Laid off employees who have been working in an employment covered by the Social Security Act may get
unemployment insurance benefits for up to _____ weeks.
a.
20
b.
22
c.
24
d.
26
88. A typical unemployment insurance program does NOT require that:
a.
all eligible individuals must register for available work.
b.
all eligible individuals must submit an application for benefits.
c.
recipients must be willing to accept any job that is offered to them.
d.
recipients must be willing to accept any suitable job that is offered to them.
89. Unemployment compensation payments to individuals vary according to:
a.
the type of job held before layoff.
b.
their previous wage rate and length of previous employment.
c.
job type and length of previous employment.
d.
their previous wage rate and the type of job held before layoff.
90. To qualify for old-age benefits, a person must reach retirement age and have earned:
a.
20 credits.
b.
40 credits.
c.
60 credits.
d.
80 credits.
91. One of the limitations of the Family and Medical Leave Act is that it only applies to companies that have ____ or
more employees during 20 or more calendar workweeks in the current or preceding year.
a.
30
b.
40
c.
50
d.
60
92. The Family and Medical Leave Act:
a.
applies to employers having 10 or more employees during 20 or more calendar workweeks in the current or
preceding year.
b.
preempts state laws under all circumstances.
c.
mandates continuation of medical coverage.
d.
requires the employer to provide up to 24 weeks of unpaid, job-protected leave for certain family and medical
reasons.
93. The Family and Medical Leave Act provides all of the following EXCEPT:
a.
up to 12 weeks of unpaid leave.
b.
promotions missed during leave.
c.
continuation of medical benefits.
d.
job protection.
94. Under the Family and Medical Leave Act, if an employee is returned to an equivalent job, rather than his/her original
job, the equivalent job must have:
a.
identical pay, benefits, and terms of employment.
b.
terms of employment and promotional opportunity.
c.
promotional opportunity and benefits.
d.
identical pay, benefits, and promotional opportunity.
95. Retired persons are eligible for Medicare at the age of:
a.
59.
b.
62.
c.
65.
d.
67.
96. A portion of the payroll taxes is paid by workers and matched by their employers. In 2011, workers and their
employers each paid _____ percent on every dollar of salary or wages paid.
a.
1.15
b.
1.30
c.
1.45
d.
1.60
97. Organizations of physicians and other health care professionals that provide a wide range of services to subscribers on
a prepaid basis are known as:
a.
preferred provider organizations (PPOs).
b.
major medical plans.
c.
health maintenance organizations (HMOs).
d.
integrated medical practices.
98. Despite its high unemployment rate, in 2011, _____ became the first state to cut the number of weeks to 20 because its
unemployment fund was so far in the red.
a.
Pennsylvania
b.
Michigan
c.
South Dakota
d.
California
99. The _____ mandates that employers make health care coverage, at the same rate the employer would pay, available to
employees, their spouses, and their dependents on termination of employment, death, or divorce.
a.
Health Care and Education Reconciliation Act
b.
Patient Protection and Affordable Care Act
c.
Consolidated Omnibus Budget Reconciliation Act
d.
Social Security Act
100. Groups of physicians that contract with an employer to provide medical resources on a more cost-efficient basis in
exchange for a greater share of patients are known as:
a.
preferred provider organizations (PPOs).
b.
major medical plans.
c.
health maintenance organizations (HMOs).
d.
integrated medical practices.
101. Beginning in 2014, firms that employ _____ 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.
12
b.
20
c.
25
d.
50
102. An advantage of a health savings account is that if there are funds remaining in the account at the end of the year the
money:
a.
goes back to the employer, helping the employer contain costs.
b.
is forfeited.
c.
belongs to the employee.
d.
can be withdrawn and placed in the employee’s retirement account.
103. Disease management programs:
a.
are comprehensive insurance benefits that serve as a supplemental health insurance.
b.
assist employees by providing information on monitoring and treating health conditions.
c.
assist employees as work-site fitness programs.
d.
are a major portion of worker's compensation insurance.
104. Holiday pay, sick leave, and vacation pay are examples of:
a.
payment for time not worked.
b.
benefits required by law.
c.
categories of health care benefits.
d.
unearned benefits.
105. Federal government employees can usually be expected to be paid for ____ holidays a year.
a.
24
b.
10
c.
15
d.
20
106. Beginning in 2014, firms with ____ full-time employees will be required to automatically enroll new full-time
employees in their health care plans.
a.
50
b.
100
c.
200
d.
250
107. A plan that enables an employee who is laid off to draw, in addition to state unemployment compensation, weekly
benefits from the employer that are paid from a fund created for this purpose is referred to as:
a.
severance pay.
b.
supplemental unemployment benefits.
c.
leave insurance compensation.
d.
unemployment protection payments.
108. Under the Family and Medical Leave Act (FMLA), employees are eligible to take leave if they have worked for
their employers for at least twelve months, have at least _____ hours of service, and work in organizations that have 50 or
more employees within a 75-mile radius
a.
750
b.
1,000
c.
1,250
d.
1,500
109. In January 2008, Congress passed the __________ which amended the Family and Medical Leave Act (FLMA) to
provide eligible employees working for covered employers new leave rights related to military service.
a.
National Defense Authorization Act
b.
Consolidated Omnibus Budget Reconciliation Act
c.
Patient Protection and Affordable Care Act
d.
Health Care and Education Reconciliation Act
110. A _____ is a plan in which employees fund accounts by having money deducted from their paychecks.
a.
consumer-driven plan
b.
healthcare spending plan
c.
health reimbursement account
d.
flexible spending account
111. Polaroid allows employees the opportunity to try out retirement with a leave program, or gradually reduce their work
hours as they approach retirement age. This is an example of:
a.
a severance leave.
b.
a preretirement program.
c.
family-friendly benefits.
d.
policies recommended by Social Security.
112. The decision whether a pension plan should be offered is the responsibility of the:
a.
union and Department of Labor representatives.
b.
employees.
c.
employer.
d.
Pension Benefit Guaranty Corporation.
113. Today, about _____ of households nearing retirement have 401(k)-type of accounts.
a.
20 percent
b.
30 percent
c.
50 percent
d.
60 percent
114. A pension plan where contributions are made jointly by employees and employers is referred to as a:
a.
contributory plan.
b.
noncontributory plan.
c.
defined-benefit plan.
d.
defined-contribution plan.
115. A pension plan where contributions are made solely by the employer is referred to as a:
a.
contributory plan.
b.
noncontributory plan.
c.
defined-benefit plan.
d.
defined-contribution plan.
116. A pension plan where the amount that an employee is to receive upon retirement is set forth in advance is referred to
as a:
a.
contributory plan.
b.
noncontributory plan.
c.
defined-benefit plan.
d.
defined-contribution plan.
117. A pension plan that establishes the basis on which an employer will contribute to a pension plan is referred to as a:
a.
contributory plan.
b.
noncontributory plan.
c.
defined-benefit plan.
d.
defined-contribution plan.
118. A popular plan that offers employees an opportunity to save through payroll deductions and have their contributions
matched by the employer is known as the:
a.
401(k) plan.
b.
tax reduction plan.
c.
ERISA benefit plan.
d.
Individual Retirement Plan.
119. Annual interest earned on cash-balance pension plans are often tied to a:
a.
20-year Treasury rate.
b.
10-year Treasury rate.
c.
15-year Treasury rate.
d.
30-year Treasury rate.
120. Private pensions are subject to federal legislation under:
a.
Employee Retirement Income Security Act (ERISA).
b.
Consolidated Omnibus Budget Reconciliation Act (COBRA).
c.
Tax Equity and Fiscal Responsibility Act (TEFRA).
d.
Retirement Equity Act (REA).
121. After an employee works for an employer for a certain period of time, the employee is entitled to the money in his or
her pension plan. This employee is now:
a.
secured.
b.
endowed.
c.
vested.
d.
integrated.
122. Vesting guarantees:
a.
withdrawal of benefits at any time.
b.
automatic funding of pension plans.
c.
accrued pension benefits at retirement age.
d.
selection of pension options.
123. To help employees pay for the college expenses of their children and other family members, an increasing number of
companies are offering _____.
a.
additional overtime
b.
contributory benefit plans
c.
cafeteria plans
d.
529 college savings plans
124. In 1996, Congress passed the ______, which provides that a same-sex domestic partner may not be treated as an
employee’s spouse for purposes of federal law.
a.
Defense of Marriage Act
b.
Employee Retirement Income Security Act
c.
Health Insurance Portability and Accountability Act
d.
Health Care and Education Reconciliation Act
125. Mildly ill child care facilities provide:
a.
tax benefits
b.
medical supervision
c.
a negative investment
d.
telecommuting facilities for working parents with ill children
126. Employer-sponsored child care programs and elder care programs are similar because:
a.
under both programs, most of the caregivers are men.
b.
both types of programs typically offer on-site care facilities to the employees who bring their wards to the
workplace.
c.
both programs try to maintain or increase productivity by assisting employees with their responsibilities
outside the workplace.
d.
both programs offer substantial income tax benefits to employees.
127. The Social Security Administration administers the ______________ program.
a.
Childcare
b.
ERISA
c.
Medicare
d.
SNL
128. In recent years, several companies have banded together to provide elder care in a cooperative arrangement referred
to as a:
a.
consortium.
b.
limited partnership.
c.
combined subsidiary.
d.
hostel.
129. Workers’ compensation insurance may be provided through private or _____ insurance.
a.
state-funded
b.
employee-prepaid
c.
federally-funded
d.
SNL-funded
130. Workers’ compensation insurance covers certain work-related _____.
a.
lawsuits
b.
misunderstandings
c.
pay inequities
d.
illnesses
131. Employers pay for workers’ compensation insurance in ___________ states.
a.
all
b.
a majority of
c.
large
d.
heavily industrialized
132. A major objective of the Pension Protection Act is to _____ 401(k) pension plans.
a.
reduce the number of
b.
alter the tax status of
c.
limit to very small employers the use of
d.
provide greater control over
133. Explain why an organization may choose to develop a cafeteria benefits plan for its employees.
134. Describe issues that employers have to consider while providing domestic partner benefits.
135. Describe the requirements and provisions of the Family and Medical Leave Act.
136. Describe some of the ways employers have been trying to contain health insurance costs.
137. Compare and contrast the risks to the employee in regard to defined-contribution and defined-benefit pension plans.
138. Explain the concept of work-life benefits. Name and discuss at least five of these benefits employers offer their
employees.
139. Why have 401(k) plans become so popular?
