Question 1

Medical insurance and disability insurance programs are legally required.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is true about workers' compensation?

Accepted Answer

A)  Workers' compensation benefits focus primarily on dealing with the increasing cost of living.
B)  Unlike before,injuries that are self-inflicted and stem from intoxication are now covered as well.
C)  Housing plans and pension services are included in workers' compensation.
D)  Self-funding of disability income by employers is restricted in most states.
E)  Disability benefits that are part of workers' compensation are tax-free.

Question 3

What potential risks do employers run when they choose to offer a flexible benefit (cafeteria-style)plan?

Accepted Answer

1.High costs: The administrative costs a...

Question 4

With the passage of the Americans with Disabilities Act,employers came under even greater pressure to deal effectively and fairly with workplace injuries.

Accepted Answer

A) True 
 B)False

Question 5

When Pietro was laid off from his job and accepted unemployment,he was surprised that it would be taxed as ordinary income.

Accepted Answer

A) True 
 B)False

Question 6

Discuss how retirement plans can combine the advantages of defined benefit plans and defined contribution plans.

Accepted Answer

One way to combine the advantages of def...

Question 7

Falcon Wings Inc.has instituted an incentive program that includes smoking cessation and exercise.The goal of this wellness program is to

Accepted Answer

A)  provide treatment for ailing employees.
B)  manage health care costs by helping employees in need.
C)  provide rehabilitation services.
D)  manage insurance-related queries from employees.
E)  change health-related behaviors both on and off work time.

Question 8

Where employee contributions completely fund a disability insurance plan,there is no federal tax.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is a reason for the growth of benefits as a method of employee compensation?

Accepted Answer

A)  The tax treatment of benefits programs is less favorable for employees than the tax treatment of wages and salaries.
B)  People prefer a dollar in cash over a dollar's worth of any specific commodity.
C)  The legislation passed during the Great Depression was not conducive to benefits.
D)  Benefits are covered by wage and price controls.
E)  Groups of employees can typically receive a cost advantage over individuals.

Question 10

You have the option to choose a retirement plan.You want to choose a plan that promises a specific benefit level,so you decline the ________ plan.

Accepted Answer

A)  defined benefit
B)  term benefit
C)  defined contribution
D)  flex benefit
E)  cash balance

Question 11

Which of the following is a characteristic of a health maintenance organization (HMO) ?

Accepted Answer

A)  Exclusion of outpatient care
B)  Provision of benefits on a reimbursement basis
C)  Payment of physicians on a flat salary basis
D)  Payment of physicians on a fee-for-service basis
E)  Payment of physicians depending on the number of patients seen

Question 12

Financial Accounting Statement 106 requires that any benefits provided after retirement be paid on a(n) ________ basis.

Accepted Answer

A)  pay-as-you-go
B)  accrual
C)  annual
D)  subtraction
E)  monthly

Question 13

Brenda has been offered choices when selecting her benefits.She knows she wants health insurance,is unsure of vision insurance,and does not want dental insurance.This is allowed because her employer has

Accepted Answer

A)  defined benefit plans.
B)  flex-plans.
C)  standard benefits packages.
D)  flexible spending accounts.
E)  traditional benefit plans.

Question 14

Which of the following is true about defined contribution plans?

Accepted Answer

A)  They shift the investment risk to the employer.
B)  They present greater administrative challenges to employers.
C)  They promise a specific benefit level for employees upon retirement.
D)  They are preferred more in smaller companies than larger ones.
E)  They have become less common.

Question 15

Which of the following is true of the Fair Labor Standards Act (FLSA) ?

Accepted Answer

A)  It requires exempt employees to be paid time and a half for hours in excess of 40 per week.
B)  It has led to Americans working fewer hours now as compared to earlier times due to a rise in benefits.
C)  It is more likely to cause employers to classify workers as independent contractors than employees.
D)  It has led to part-time employees being more likely to receive benefits than full-time employees.
E)  It increases the employer's obligation to provide legally required employee benefits.

Question 16

Which of the following is an advantage for employers who implement flexible benefits plans?

Accepted Answer

A)  Low initial design costs
B)  Low administrative costs
C)  Control over the size of the contribution
D)  Low adverse selection
E)  Easy estimation of the costs of benefits

Question 17

To be a qualified benefits plan,a pension plan should not discriminate in favor of

Accepted Answer

A)  part-time employees.
B)  older employees.
C)  highly compensated employees.
D)  employees with disabilities.
E)  ex-employees (retired) .

Question 18

Which of the following was an amendment to the Social Security Act of 1935?

Accepted Answer

A)  Descendant's insurance
B)  Inability insurance
C)  Estate insurance
D)  Hospital insurance
E)  Posterity insurance

Question 19

In which of the following ways may staffing practices change in response to benefit cost controls?

Accepted Answer

A)  Increasing benefit costs per hour by having employees work more hours with fixed benefit costs
B)  Classifying employees as contractors rather than employees
C)  Increasing the number of full-time workers
D)  Rehiring previously laid off employees
E)  Paying temporary workers for time not spent working

Question 20

What aspects make benefits different from direct compensation?

Accepted Answer

Although it makes sense to think of bene...

Exam 13: Employee Benefits

What potential risks do employers run when they choose to offer a flexible benefit (cafeteria-style)plan?

Correct Answerverified1.High costs: The administrative costs a...View AnswerShow Answer

Which of the following is true of the Fair Labor Standards Act (FLSA) ?

Correct AnswerverifiedShow Answer

Where employee contributions completely fund a disability insurance plan,there is no federal tax.

Correct AnswerverifiedShow Answer

When Pietro was laid off from his job and accepted unemployment,he was surprised that it would be taxed as ordinary income.

Correct AnswerverifiedShow Answer

What aspects make benefits different from direct compensation?

Correct AnswerverifiedAlthough it makes sense to think of bene...View AnswerShow Answer

Falcon Wings Inc.has instituted an incentive program that includes smoking cessation and exercise.The goal of this wellness program is to

Correct AnswerverifiedShow Answer

Which of the following was an amendment to the Social Security Act of 1935?

Correct AnswerverifiedShow Answer

To be a qualified benefits plan,a pension plan should not discriminate in favor of

Correct AnswerverifiedShow Answer

You have the option to choose a retirement plan.You want to choose a plan that promises a specific benefit level,so you decline the ________ plan.

Correct AnswerverifiedShow Answer

Medical insurance and disability insurance programs are legally required.

Correct AnswerverifiedShow Answer

Brenda has been offered choices when selecting her benefits.She knows she wants health insurance,is unsure of vision insurance,and does not want dental insurance.This is allowed because her employer has

Correct AnswerverifiedShow Answer

In which of the following ways may staffing practices change in response to benefit cost controls?

Correct AnswerverifiedShow Answer

Which of the following is a characteristic of a health maintenance organization (HMO) ?

Correct AnswerverifiedShow Answer

Which of the following is a reason for the growth of benefits as a method of employee compensation?

Correct AnswerverifiedShow Answer

Which of the following is an advantage for employers who implement flexible benefits plans?

Correct AnswerverifiedShow Answer

With the passage of the Americans with Disabilities Act,employers came under even greater pressure to deal effectively and fairly with workplace injuries.

Correct AnswerverifiedShow Answer

Financial Accounting Statement 106 requires that any benefits provided after retirement be paid on a(n) ________ basis.

Correct AnswerverifiedShow Answer

Which of the following is true about workers' compensation?

Correct AnswerverifiedShow Answer

Discuss how retirement plans can combine the advantages of defined benefit plans and defined contribution plans.

Correct AnswerverifiedOne way to combine the advantages of def...View AnswerShow Answer

Which of the following is true about defined contribution plans?

Correct AnswerverifiedShow Answer

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1.High costs: The administrative costs a...
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Although it makes sense to think of bene...
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One way to combine the advantages of def...
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Correct Answer
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