Lussier, Human Resources Management 3e
SAGE Publishing, 2019
Chapter 13: Employee Benefits
Test Bank
Multiple Choice
1. While most employees take a job because of the advertised level of pay, many stay
with a job because of the ______ associated with it.
A. benefits package
B. variable pay
C. experience rating
D. contribution plan
2. Employee benefits average ______ % of total employee compensation cost in U.S.
organizations.
A. 18
B. 32
C. 45
D. 50
3. ______ provide an incentive to employees to continue working for an organization
because they feel as if they are being cared for by the organization.
A. Contributions
B. Ratings
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C. Benefits
D. Rankings
4. Providing ______ can reduce the tax burden on both the organization and the
individual.
A. bonuses
B. benefits
C. merit pay
D. commissions
5. Once a benefit becomes part of the employee’s compensation package, it is ______
to delete that benefit in the future.
A. very easy
B. very hard
C. essential
D. expected
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6. According to expectancy theory, ______ is important in a benefits package because it
gives employees the benefits that are of value to them.
A. rigidity
B. flexibility
C. experience
D. rating
7. In examining her organization’s benefits package, Petra has determined that the
organization can provide a 40% premium to direct compensation for the cost of benefits.
What aspect of providing a benefits program is Petra considering?
A. amount
B. mix
C. flexibility
D. vesting
8. Michaela and Carolyn are discussing changes to the benefits program at their
organization. Michaela would like to see the organization provide more lifestyle benefits
such a dog day care. Carolyn is pushing for more dental and disability coverage. What
aspect of providing a benefits program are Michaela and Carolyn discussing?
A. amount
B. mix
C. flexibility
D. vesting
9. Sasha’s organization offers employees a choice of different benefits. Since Sasha
has two children, she selected childcare vouchers and sick child coverage from the list
of benefits. The benefits managers at Sasha’s organization seem to have considered
the importance of ______ in providing benefits programs.
A. amount
B. mix
C. flexibility
D. vesting
10. ______ benefits are the type of benefits that are required by law.
A. Statutory
B. Domestic
C. Cultural
D. Structural
11. By far the largest of the U.S. statutory programs, in both size and cost to employers
(and employees), are ______.
A. Social Security and Medicare
B. Social Security and Medicaid
C. Medicare and Medicaid
D. Medicare and the ACA
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12. Old-Age, Survivors, and Disability Insurance is the formal name for what is generally
called ______.
A. Welfare
B. Medicare
C. Social Security
D. Medicaid
13. The Social Security and Medicare group of programs cost more than ______% of all
money the federal government received in 2016.
A. 10
B. 21
C. 34
D. 46
14. An individual must earn ______ “credits” in their lifetime in order to become eligible
for Social Security retirement.
A. 40
B. 80
C. 20
D. 75
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15. At current rates, Old Age, Survivors, and Disability Insurance will exhaust its funds
in ______.
A. 2027
B. 2056
C. never
D. 2034
16. Individuals become eligible for ______ at the same time as their eligibility for Social
Security retirement begins.
A. Medicare
B. Welfare
C. Cultural benefits
D. Domestic benefits
17. ______ provides basic medical benefits, but it was not designed to be a full–
coverage program.
A. Welfare
B. Medicare
C. Social Security
D. Unemployment Insurance
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18. Whitney earns about $100,000 a year. She and her employer both pay 6.2% of
Whitney’s earnings into ______. Whitney’s portion is withheld from her paycheck.
A. Social Security
B. Medicare
C. unemployment insurance
D. retirement
19. Obiajulu and her employer both pay 1.45% of Obiajulu’s earnings into ______.
Obiajulu’s portion is withheld from her paycheck.
A. Social Security
B. Medicare
C. unemployment insurance
D. retirement
20. ______ is an insurance program designed to provide medical treatment and
temporary payments to employees who cannot work because of an employment-related
injury or illness.
A. Medicare
B. Workers’ compensation
C. Unemployment Insurance
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D. Social Security
21. ______ of the cost of workers’ compensation insurance is paid for by employees.
A. All
B. Some
C. Most
D. None
22. Workers’ compensation is ______ insurance, which means that no matter who was
at fault in an accident- or illness-related situation, the insurance will be paid out to the
party harmed.
A. at-fault
B. all-fault
C. no-fault
D. fault-fault
23. Workers’ compensation programs are managed by ______.
A. the federal government
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B. county governments
C. state governments
D. municipal governments
24. ______ is a measure of how often claims are made against an insurance policy.
A. Utilization analysis
B. Variable analysis
C. Experience rating
D. Merit analysis
25. Paige was working on a graphic design project for her employer when she cut her
hand with scissors and needed stitches. Her doctor’s visit to get the stitches was
covered under ______.
A. Social Security
B. Medicare
C. unemployment insurance
D. worker’s compensation
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26. ______ provides workers who lose their jobs with continuing subsistence payments
from their state for a specified period of time.
A. Welfare
B. Social Security
C. Medicare
D. Unemployment Insurance
27. Normally, the maximum period of time for which an individual can receive
unemployment benefits is ______ weeks.
A. 2
B. 13
C. 26
D. 99
28. Unemployment Insurance allows unemployed workers to continue to have at least
some ______ power.
A. retirement
B. medical
C. purchasing
D. commission
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29. Due to a recession, Danai was laid off by her organization. To avoid having Danai
and other laid off workers stop spending money and thus deepen the recession, ______
will help them maintain some income.
A. Social Security
B. Medicare
C. unemployment insurance
D. worker’s compensation
30. Upon an employee’s return from ______ leave, the employee must be restored to
the original job or one that is equivalent in pay, benefits, and other terms and conditions
of employment.
A. Family and Medical Leave Act
B. Patient Protection and Affordable Care Act
C. Unemployment
D. Social Security
31. Yusuf has requested unpaid leave to care for his wife. She was injured while serving
in the Army in Afghanistan. Yusuf will be able to take this leave and return to his original
job (or an equivalent one) under ______.
A. Social Security
B. the Affordable Care Act
C. the Family Medical Leave Act
D. Medicare
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32. Matthew has just had a foster child placed in his care. He has requested unpaid
leave to care for the child. Matthew will be able to take this leave and return to his
original job (or an equivalent one) under ______.
A. Social Security
B. the Affordable Care Act
C. the Family Medical Leave Act
D. Medicare
33. ______ is defined as an illness, injury, impairment, or physical or mental condition
that involves either inpatient care or continuing care for at least 3 consecutive days.
A. Minor health condition
B. Serious health condition
C. Social health condition
D. Leave-eligible health condition
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34. The Patient Protection and Affordable Care Act mandated that all employers with
more than ______ employees provide their full-time employees with healthcare
coverage or face penalties for failing to do so.
A. 10
B. 30
C. 50
D. 100
35. According to the Patient Protection and Affordable Care Act of 2010, health
insurance plans should be “affordable,” which means the premium will not exceed
______% of the employee’s household income.
A. 5
B. 9.5
C. 12.5
D. 15
36. Under the______, employees not covered by a healthcare plan at work are required
to go to the state health exchange where they can purchase individual coverage.
A. Family and Medical Leave Act
B. Patient Protection and Affordable Care Act
C. Unemployment Act
D. Social Security Act
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37. The ______ is a law that requires employers to offer to maintain health insurance for
a period of time on individuals who leave their employment.
A. Family and Medical Leave Act
B. Patient Protection and Affordable Care Act
C. Consolidated Omnibus Budget Reconciliation Act
D. Social Security Act
38. Siobhan recently quit her job at Acme Global. Under ______, Siobhan can continue
to pay for her group health insurance through Acme Global to avoid having a gap in her
coverage.
A. Consolidated Omnibus Budget Reconciliation Act of 1985
B. Health Insurance Portability and Accountability Act of 1996
C. Employee Retirement Income Security Act of 1974
D. Social Security
39. ______ allows health insurance coverage after termination of employment for at
least 18 months and for as many as 36 months in some limited cases.
A. Family and Medical Leave Act
B. Patient Protection and Affordable Care Act
C. Consolidated Omnibus Budget Reconciliation Act
D. Health Insurance Portability and Accountability Act
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40. The Consolidated Omnibus Budget Reconciliation Act applies to companies with
______ or more full-time equivalent employees.
A. 5
B. 50
C. 20
D. 80
41. The ______ requires that if a new employee had group health insurance at a
previous employer and the new employer has healthcare coverage for their employees,
the new employer is required to provide the new employee with the opportunity to
participate in their health insurance plan.
A. Family and Medical Leave Act
B. Patient Protection and Affordable Care Act
C. Consolidated Omnibus Budget Reconciliation Act
D. Health Insurance Portability and Accountability Act
42. Isis quit her job at one organization with a group health insurance plan and was
hired at another organization with a group insurance plan. According to the ______,
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Isis’s new employer is required to provide her with the opportunity to participate in the
plan.
A. Consolidated Omnibus Budget Reconciliation Act
B. Health Insurance Portability and Accountability Act
C. Employee Retirement Income Security Act
D. Social Security Act
43. The ______ rule of Health Insurance Portability and Accountability Act of 1996
requires that covered firms take reasonable steps to limit the use or disclosure of, and
requests for, protected health information.
A. openness
B. privacy
C. open disclosure
D. health information
44. The ______ rule of Health Insurance Portability and Accountability Act of 1996
requires covered firms to have appropriate administrative, technical, and physical
safeguards to protect the privacy of protected health information for individual
employees.
A. pay
B. privacy
C. security
D. disclosure
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45. ______ applies to employers who provide a group retirement plan and/or group
health and welfare plans, including medical, dental, vision, life insurance, and others.
A. Employee Retirement Income Security Act
B. Unemployment Insurance
C. Consolidated Omnibus Budget Reconciliation Act
D. Social Security
46. Macy’s organization provides group health insurance to its employees. According to
the ______, the organization must issue a “Summary Plan Description” that describes
the insurance plan and how it works in plain language.
A. Consolidated Omnibus Budget Reconciliation Act of 1985
B. Health Insurance Portability and Accountability Act of 1996
C. Employee Retirement Income Security Act of 1974
D. Social Security
47. ______ provides for a maximum amount of time beyond which the employee will
have unfettered access to their retirement funds, both employee contributions and
employer contributions.
A. Vesting
B. Ranking
C. Rating
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D. Utilization
48. A provision of Employee Retirement Income Security Act is the creation of ______.
A. the Consolidated Omnibus Budget Reconciliation Program
B. Social Security
C. Medicare
D. the Pension Benefit Guarantee Corporation
49. A ______ is a health care plan that provides both health maintenance services and
medical care as part of the plan.
A. preferred provider organization
B. traditional health care plan
C. Social Security plan
D. health maintenance organization
50. In a health maintenance organization, the ______ will be the first point of contact for
all preventive care and in any routine medical situation except emergencies.
A. case manager
B. network administrator
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C. insurance carrier
D. primary care physician
51. Managed care plans generally require that the employee and their family use
doctors and facilities that are in the managed care ______.
A. vestment
B. outwork
C. network
D. alliance
52. Any organization with a health maintenance organization plan should do a ______
to learn if any savings may be recouped from the HMO due to fewer than anticipated
doctor visits.
A. employment analysis
B. use analysis
C. consumption analysis
D. utilization analysis
53. ______ are a hybrid between traditional fee-for-service plans and health
maintenance organizations.