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1. Benefits generally account for approximately 14 percent of payroll costs.
a.
True
b.
False
ANSWER:
False
2. It is worthwhile for employers to offer attractive benefit packages, because surveys show that employees who are
satisfied with their benefits are more likely to be satisfied with their jobs.
a.
True
b.
False
ANSWER:
True
3. Millennial employees are less likely to be concerned with having pensions than Baby Boomers.
a.
True
b.
False
ANSWER:
True
4. TynsCorp encourages its employees to eat properly and to exercise. To promote these goals, TynsCorp offers healthy
cooking classes and discounted memberships to area fitness centers. This is an example of a wellness program.
a.
True
b.
False
ANSWER:
True
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
ANSWER:
False
6. A basic benefits package that is typically offered to employees usually includes life and health insurance, sick leave,
and vacation.
a.
True
b.
False
ANSWER:
True
7. Employers are tailoring their benefits programs to be family-friendly, because employees desire more work-life
balance.
a.
True
b.
False
ANSWER:
True
8. TynsCorp is considering introducing a number of new benefits as a way to retain employees. Before introducing these
benefits, or even investing too much effort in preparing the packages, TynsCorp should consult with its employees to
determine if there is a need for them.
a.
True
b.
False
ANSWER:
True
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9. TynsCorp wants to offer a benefits plan that will accommodate the individual needs of its employees. TynsCorp should
consider implementing a cafeteria plan.
a.
True
b.
False
ANSWER:
True
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
ANSWER:
False
11. TynsCorp contracted with compensation specialists to make recommendations on how to improve its benefits
packages. It is likely that those specialists will suggest flexible benefits plans, as those tend to be seen as ideal.
a.
True
b.
False
ANSWER:
True
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
ANSWER:
True
13. TynsCorp misled its employees about certain health benefits that were available in their plan. TynsCorp included the
benefits as a way to attract new recruits in key positions while limiting the total number of employees who actually tried
to use the benefit as a way to keep costs lower. The employees can sue TynsCorp under ERISA.
a.
True
b.
False
ANSWER:
True
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
ANSWER:
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
ANSWER:
True
16. Generally speaking, a firm with a record of laying off large numbers of employees will have to pay a lower payroll tax
rate than those that do not.
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a.
True
b.
False
ANSWER:
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
ANSWER:
False
18. Since it is essentially retirement insurance, in order to qualify for Social Security benefits, individuals must be at least
65 years of age.
a.
True
b.
False
ANSWER:
False
19. To be eligible for Social Security disability benefits, an individual’s disability must be expected to last for at least one
year or to result in death.
a.
True
b.
False
ANSWER:
True
20. TynsCorp just laid off a number of employees. They are eligible for 52 weeks of unemployment insurance.
a.
True
b.
False
ANSWER:
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
ANSWER:
True
22. Peter was recently laid off from his job. He was looking forward to some “paid vacation” as he collects unemployment
benefits for staying home. But then he learned that in order to be eligible for benefits, he has to submit an application for
unemployment compensation with the state employment agency, register for available work, and be willing to accept any
suitable employment that may be offered to him.
a.
True
b.
False
ANSWER:
True
23. Beth and Jon both work at TynsCorp. Beth just gave birth to a baby, while Jon and his wife just adopted a child.
Under the Family and Medical Leave Act, Beth is eligible for 12 workweeks of unpaid leave, but Jon is not.
a.
True
b.
False
ANSWER:
False
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24. One of the changes brought about through recent workers’ compensation laws is that disabled workers receive uniform
compensation regardless of the state in which they work.
a.
True
b.
False
ANSWER:
False
25. TynsCorp and Lowell Industries are similar-sized companies located in the same state, and operating in the same
market sector. Because TynsCorp has a much higher injury rate than Lowell Industries, it pays a higher workers’
compensation insurance rate.
a.
True
b.
False
ANSWER:
True
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
ANSWER:
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
ANSWER:
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
ANSWER:
True
29. The Family and Medical Leave Act permits substitution of paid leave and vacation during leave.
a.
True
b.
False
ANSWER:
True
30. Ric was on leave from TynsCorp under the Family and Medical Leave Act. Now that he is ready to return to work,
TynsCorp must provide him with a job, but it can be at lower pay or with fewer benefits than what he had before if that is
the only position available.
a.
True
b.
False
ANSWER:
False
31. Jolee’s is a fairly small company. It employs 75 people. Of those, 62 are full time, working 40 or more hours a week,
and the rest are part time, working 20-25 hours a week. Because of legislation that went into effect in 2014, Jolee’s must
offer employees health insurance or else pay a penalty to the government.
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a.
True
b.
False
ANSWER:
True
32. Some states provide rights to employees that are lesser than those provided by the Family and Medical Leave Act.
a.
True
b.
False
ANSWER:
False
33. Group health care plans only cover medical, surgical, and hospital expenses.
a.
True
b.
False
ANSWER:
False
34. As health care costs rise, TynsCorp is exploring ways to contain costs. One thing they might want to consider is
requiring employees to share more of the burden by increasing the portion of the premium that employees need to pay.
a.
True
b.
False
ANSWER:
True
35. To contain health care costs, an employer may increase an employee’s deductible amount or co-payments.
a.
True
b.
False
ANSWER:
True
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
ANSWER:
True
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
ANSWER:
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
ANSWER:
False
39. Jolee’s company provides health coverage to its employees through a PPO. While the costs are somewhat lower, one
disadvantage, especially when compared to HMOs, is that employees have little choice in the doctor they see.
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a.
True
b.
False
ANSWER:
False
40. One advantage to health reimbursement accounts is that employees do not have to pay taxes on the amounts they are
reimbursed under an HRA.
a.
True
b.
False
ANSWER:
True
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
ANSWER:
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
ANSWER:
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
ANSWER:
False
44. TynsCorp needs to downsize to meet changing demands in the market. Employees who are let go during this
downsizing qualify for severance pay. As a result, in addition to state unemployment compensation, they will also receive
weekly severance pay from TynsCorp.
a.
True
b.
False
ANSWER:
False
45. Severance pay is considered a supplemental unemployment benefit.
a.
True
b.
False
ANSWER:
False
46. Supplemental unemployment benefits are not required by law and are usually funded by an employer.
a.
True
b.
False
ANSWER:
True
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47. Almost all workers with health coverage receive mental health benefits as part of their plans.
a.
True
b.
False
ANSWER:
True
48. As health care costs rise, TynsCorp is exploring ways to contain costs. One option, common among large companies
like TynsCorp, is to reduce or even eliminate the health care plans they provide to retirees.
a.
True
b.
False
ANSWER:
True
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
ANSWER:
True
50. Paid time off for hours not worked is not mandatory in the United States.
a.
True
b.
False
ANSWER:
True
51. Even though paid time off is not mandated by law, most companies provide paid vacation time for their employees
because research shows that workers who get vacations are more productive and less prone to job-related burnout.
a.
True
b.
False
ANSWER:
True
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
ANSWER:
True
53. Today, employers are required to provide pension plans to all full-time employees.
a.
True
b.
False
ANSWER:
False
54. When an employer offers a contributory pension plan, contributions are made jointly by employers and the
government.
a.
True
b.
False
ANSWER:
False
55. TynsCorp has a defined-contribution pension plan. The company feels this type of plan is most beneficial to the
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employees because the amount an employee is to receive upon retirement is specifically set forth.
a.
True
b.
False
ANSWER:
False
56. TynsCorp offers a defined benefit pension plan. But since it has no guarantees of payments, TynsCorp also strongly
encourages its employees to participate in a 401(k) plan, which guarantees payments based on years of service.
a.
True
b.
False
ANSWER:
False
57. Companies may match employee contributions to a 401(k) with cash or company stock.
a.
True
b.
False
ANSWER:
True
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
ANSWER:
True
59. TynsCorp has rolled out a new set of benefits from which employees may take advantage of one per calendar year.
These benefits include up $2,000 towards the cost of home insulation or the purchase of a hybrid car. This program is an
example of green benefits.
a.
True
b.
False
ANSWER:
True
60. A 401(k) plan is also called a cash balance pension plan.
a.
True
b.
False
ANSWER:
False
61. David is vested in the pension plan at TynsCorp. In order to receive the benefits, he must be employed by TynsCorp at
the time of his retirement.
a.
True
b.
False
ANSWER:
False
62. Childcare, elder care, and extended leave policies are all examples of work-life benefits.
a.
True
b.
False
ANSWER:
True
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63. Employee assistance programs (EAPs) help employees mainly with relocation costs.
a.
True
b.
False
ANSWER:
False
64. A common childcare benefit offered by employers is the dependent care spending account.
a.
True
b.
False
ANSWER:
True
65. TynsCorp subsidizes temporary care for an employee’s elders or children when the regular caregiver cancels at the last
minute. This benefit, which allows employees to still come to work, is called a backup care program.
a.
True
b.
False
ANSWER:
True
66. Benefits can represent, on average, about __________ of the employer’s total payroll costs.
a.
28 percent
b.
7 percent
c.
12 percent
d.
66 percent
ANSWER:
b
67. Which of the following represents the greatest expense to which a dollar of the employee compensation goes to the
United States, after wages?
a.
Supplemental pay
b.
Paid leave
c.
Legally required benefits
d.
Health, life, and disability insurance
ANSWER:
d
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
ANSWER:
b
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
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ANSWER:
c
70. TynsCorp wants to get input from its employees regarding its benefits package. The most common way to do this
would be to use
a.
performance appraisals.
b.
psychological tests.
c.
union reports.
d.
opinion surveys.
ANSWER:
d
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.
ANSWER:
a
72. TynsCorp gave its employees misleading information about the welfare benefits to which they may be entitled. Those
employees can sue TynsCorp under provisions of the
a.
Social Security Act.
b.
Employee Retirement Income Security Act.
c.
Consolidated Omnibus Budget Reconciliation Act.
d.
Family and Medical Leave Act.
ANSWER:
b
73. Flexible benefit plans
a.
are offered to employees who then must purchase each benefit they select.
b.
are avoided by employers because they increase 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.
ANSWER:
d
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 as, they tend to make the information less understandable and encourage confusion.
ANSWER:
d
75. When communicating benefits programs to employees, it is a good idea to use
a.
technical legal language to avoid subsequent liability.
b.
one uniform method to communicate to all employees.
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c.
multiple media techniques.
d.
graphics and presentation software to conceal unpleasant news.
ANSWER:
c
76. Why would a company consider increasing the amounts that employees have to pay towards their benefits by
increasing premiums or deductibles?
a.
To comply with ERISA guidelines
b.
To encourage early retirement
c.
To contain costs
d.
To limit workers’ compensation claims
ANSWER:
c
77. As the workforce has become more diverse, more employers are now willing to provide benefits to employees who
establish a
a.
dual taxing relationship.
b.
joint employment status.
c.
codependent relationship.
d.
domestic partnership.
ANSWER:
d
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 requirement that each be a blood relative.
ANSWER:
d
79. TynsCorp offers domestic companion benefits, but, as is common, in order to receive these benefits, the employees
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.
ANSWER:
b
80. TynsCorp is reviewing its benefits package. Which of the following benefits would TynsCorp be able to discontinue
since it 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
ANSWER:
d
81. The medical insurance plan provided by TynsCorp is a high-deductible health insurance plan. To help employees pay
the higher deductibles, TynsCorp might want to pair this with a