Question 1

Benefits provided to domestic partners of employees have the same tax advantages as benefits provided to their spouses.

Accepted Answer

A) True 
 B)False

Question 2

Which type of retirement plan guarantees a specified level of retirement income?

Accepted Answer

A)   401(k)  plan
B)   Profit sharing plan
C)   Money purchase plan
D)   Defined benefit plan
E)   Employee stock ownership planF) D) and E)
G) None of the above

Question 3

According to the Americans with Disabilities Act (ADA),employers are required to take care not to discriminate against workers over age 40 in providing pay or benefits.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following criteria is an organization required to meet while offering early retirement incentives?

Accepted Answer

A)   Set an age at which retirement benefits stop growing
B)   Ask female employees to pay more to defined-benefit plans
C)   Should not coerce employees to retire.
D)   Ask employees to sign compulsory waiver under ADEA
E)   Provide employees not more than 48 hours to make an early retirement decisionF) All of the above
G) None of the above

Question 5

Cafeteria-style plans permit employees to choose the types and amounts of benefits they want for themselves from a given set of alternatives.

Accepted Answer

A) True 
 B)False

Question 6

To encourage learning and attract the kinds of employees who wish to develop their knowledge and skills,many organizations offer:

Accepted Answer

A)   tuition reimbursement programs.
B)   flexible schedules.
C)   paid leaves for more than 2 weeks.
D)   quarterly promotions.
E)   college savings plans.F) A) and C)
G) A) and B)

Question 7

Which of the following is true of a cash balance plan?

Accepted Answer

A)   All contributions to the plan come from the employee.
B)   The money earns interest at a predetermined rate, such as the rate paid on U.S. Treasury bills.
C)   Older employees with many years of service benefit to a greater degree than do younger workers just starting their careers.
D)   It penalizes employees for changing jobs.
E)   Employees cannot predict retirement benefits under cash balance plans.F) C) and E)
G) A) and C)

Question 8

Which of the following benefits is required by law in the United States?

Accepted Answer

A)   Sick leave
B)   Personal leave
C)   Medical care
D)   Social Security
E)   Paid leaveF) All of the above
G) A) and E)

Question 9

Tax-favored 529 savings plans allow employees to set aside a portion of their pretax earnings to purchase long-term care insurance.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is a requirement set for employers under the FASB standards?

Accepted Answer

A)   Employers must fund benefits on a pay-as-you-go basis.
B)   Benefits must not appear as future cost obligations.
C)   Employers should encourage employees to participate in management functions.
D)   Financial statements should be made in such a way that outsiders cannot understand them.
E)   Employers must set aside the funds they expect to need for benefits to be paid after retirement.F) B) and E)
G) A) and B)

Question 11

Since benefits packages are more complex than pay structures,they are harder for employees to understand and appreciate.

Accepted Answer

A) True 
 B)False

Question 12

Discuss the role of the Age Discrimination in Employment Act (ADEA)in employee benefits packages?

Accepted Answer

Two major issues have received attention...

Question 13

In general,Social Security provides support for _____.

Accepted Answer

A)   laid-off workers
B)   workers injured on the job
C)   retired workers
D)   self-injured workers
E)   sick workersF) B) and E)
G) C) and D)

Question 14

The purpose of floating holidays is to allow employees to:

Accepted Answer

A)   extend a Tuesday or Thursday holiday into a long weekend.
B)   decide which national holidays they wish to observe with pay.
C)   take time off for personal reasons on any day of the week.
D)   allow international employees to observe legal holidays within their country of assignment.
E)   pool in the different types of leaves and enjoy long paid vacations.F) D) and E)
G) A) and B)

Question 15

Which of the following is true of the Pension Benefit Guarantee Corporation?

Accepted Answer

A)   It was created by the Employee Retirement Income Security Act (ERIS
A)   of 1974.
B)   It provides a supplemental income if the employee is temporarily unemployed.
C)   It provides employee protection for only defined-benefit pension plans.
D)   It is funded by a payroll tax imposed on each plan participant.
E)   It guarantees retirees a basic benefit only if the employer is in a sound financial position.F) A) and E)
G) C) and E)

Question 16

How do cafeteria-style plans increase costs for employers?

Accepted Answer

A)   Employers pay much higher premium on HMO than a preferred health care plan.
B)   Employers are required to pay higher insurance premium for laid-off workers.
C)   Contribution to PGBC to fund the retirement plan increases under this plan.
D)   Employees select the kind of benefits they expect to need the most.
E)   The employers bear the cost of providing employees with benefits they do not value.F) A) and E)
G) A) and D)

Question 17

Which one of the following is true of Social Security benefits?

Accepted Answer

A)   Benefits are taxed as ordinary income at both the federal and state level.
B)   Workers who meet requirements receive retirement benefits according to age and earnings history.
C)   Workers are not required to meet any eligibility rules to receive benefits.
D)   The cost of the program is borne entirely by the employees who pay a payroll tax.
E)   The program covers railroad and federal, state, and local government employees.F) B) and D)
G) None of the above

Question 18

The _____ is a report that describes a pension plan's funding,eligibility requirements,risks,and other details.

Accepted Answer

A)   mission statement
B)   balanced scorecard
C)   labor law posting
D)   "top-heavy" plan
E)   summary plan descriptionF) A) and B)
G) D) and E)

Question 19

Which one of the following is true of workers' compensation?

Accepted Answer

A)   Employees are covered under the "no-fault" provision even if the injury is self-inflicted.
B)   Disability income is not covered under this benefit.
C)   It provides payments to offset lost income during involuntary unemployment.
D)   Funding for the program comes from the state taxes on employees.
E)   The benefits provided to the workers are not taxable.F) A) and D)
G) A) and C)

Question 20

Which one of the following statements is true of employee benefits?

Accepted Answer

A)   Employees generally have a thorough understanding of what benefits they have and what the market value of these benefits is.
B)   Employees significantly underestimate the cost and value of their benefits.
C)   Employers do an effective job of communicating the cost and value of benefits to their employees.
D)   Employees, for the most part, are just not interested in their benefits.
E)   Employers have very limited options for communicating information about benefits.F) B) and D)
G) A) and E)

Exam 13: Providing Employee Benefits

How do cafeteria-style plans increase costs for employers?

Correct AnswerverifiedShow Answer

Benefits provided to domestic partners of employees have the same tax advantages as benefits provided to their spouses.

Correct AnswerverifiedShow Answer

Which of the following benefits is required by law in the United States?

Correct AnswerverifiedShow Answer

The _____ is a report that describes a pension plan's funding,eligibility requirements,risks,and other details.

Correct AnswerverifiedShow Answer

Which one of the following is true of workers' compensation?

Correct AnswerverifiedShow Answer

To encourage learning and attract the kinds of employees who wish to develop their knowledge and skills,many organizations offer:

Correct AnswerverifiedShow Answer

Which of the following criteria is an organization required to meet while offering early retirement incentives?

Correct AnswerverifiedShow Answer

Which one of the following statements is true of employee benefits?

Correct AnswerverifiedShow Answer

Since benefits packages are more complex than pay structures,they are harder for employees to understand and appreciate.

Correct AnswerverifiedShow Answer

In general,Social Security provides support for _____.

Correct AnswerverifiedShow Answer

According to the Americans with Disabilities Act (ADA),employers are required to take care not to discriminate against workers over age 40 in providing pay or benefits.

Correct AnswerverifiedShow Answer

Which of the following is a requirement set for employers under the FASB standards?

Correct AnswerverifiedShow Answer

Which of the following is true of a cash balance plan?

Correct AnswerverifiedShow Answer

Which of the following is true of the Pension Benefit Guarantee Corporation?

Correct AnswerverifiedShow Answer

Cafeteria-style plans permit employees to choose the types and amounts of benefits they want for themselves from a given set of alternatives.

Correct AnswerverifiedShow Answer

Which type of retirement plan guarantees a specified level of retirement income?

Correct AnswerverifiedShow Answer

Discuss the role of the Age Discrimination in Employment Act (ADEA)in employee benefits packages?

Correct AnswerverifiedTwo major issues have received attention...View AnswerShow Answer

Which one of the following is true of Social Security benefits?

Correct AnswerverifiedShow Answer

The purpose of floating holidays is to allow employees to:

Correct AnswerverifiedShow Answer

Tax-favored 529 savings plans allow employees to set aside a portion of their pretax earnings to purchase long-term care insurance.

Correct AnswerverifiedShow Answer

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Two major issues have received attention...
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