chapter 13

Employers who do not meet employee expectations regarding benefits run the risk of violating the

"implicit contract" that exists between workers and the company they work for

Under the Fair Labor Standards Act, nonexempt employees must be paid time-and-a-half for any hours worked over ______ each week.

40

What is the full retirement age for Social Security benefits to begin for workers born in 1960 or later

67

Once employees enter a company pension plan, the employer has ______ days to provide employees with a summary plan description, which provides detailed information about the plan.

90

What is the name of the law that was enacted in 2010 to provide health care benefits to more Americans?

Affordable Care Act

What impact does FAS 106 have on companies?

Companies must carry the future costs of retiree benefits on their current financial statements.

What are some advantages of flexible benefits plans

Cost control of benefits may occur, which is economical for the employer. Employees can choose the benefits plans that work best for them. Employees are more aware of the value of their benefits. Employees can gain greater awareness of what the employer provides for them.

How are workers' compensation benefits typically funded?

Employers purchase coverage from insurance companies.

Which strategies can employers use to control employee benefit costs?

Hire temporary workers. Hire part-time workers. Hire contingent workers.

Which of the following describe a defined contribution plan?

It does not guarantee a certain benefit level to the employee upon retirement. It requires less administrative oversight on the part of the employer.

What does the U.S. Supreme Court's 1978 Manhart ruling state?

It is illegal to force women to contribute more to a defined benefits plan.

Which of the following statements about communicating with employees about benefits is true?

Most employees do not fully understand what their benefits provide.

What is the name of the government agency that guarantees employees a basic retirement benefit in the event that financial difficulties force a company to terminate or reduce pension benefits?

Pension Benefit Guaranty Corporation

The largest portion of an average retiree's income comes from which of the following

Social Security

Which of the following statements about retirement benefits is true?

Social Security is a legally required source of retirement income. Firms have started reducing retiree benefits.

Which of the following is an outcome of increased retiree health care costs and the FAS 106 ruling as it pertains to employee-sponsored health insurance?

Some companies have discontinued providing health care benefits to white-collar retirees.

Which of the following statements about the number of hours worked by employees are true?

Some employers prefer to pay employees overtime rather than hire additional workers. Benefit costs are fixed and do not usually increase when an employee works more hours. The benefits cost per hour can be reduced by having employees work longer hours.

Which of the following statements about the Affordable Care Act (ACA) is true

The future of the ACA is unclear.

What are some of the characteristics of employee wellness programs (EWPs)?

They are often designed to target certain health care issues, such as high blood pressure. They work to lower the amount an employer must spend on employee health care. They often try to promote positive health influences, such as good nutrition.

Which of the following is true for employees who sign up for a health maintenance organization (HMO) health care plan?

They have benefits that are prepaid. They can only use HMO services.

Why have some companies set up voluntary employee benefit association (VEBA) trusts

To move retiree health care obligations off their financial statements

Which of the following statements about employer-sponsored insurance plans is true

Two major types of plans are medical insurance and disability insurance.

In which type of retirement plan does an employee's account earn a predetermined interest rate

a cash balance plan

Offering an on-site child care facility is _____

an expensive venture for an employer

Controlling labor costs is not possible without also controlling ___

benefits costs

What is the advantage of a qualified benefits plan

better tax treatment than a nonqualified plan

How can employers keep their unemployment tax rate low?

by limiting the number of employee layoffs

What is the acronym for government legislation that requires employers to permit employees to extend their health care coverage at group rates for a specified period following a "qualifying" event, such as a layoff?

cobra

To maximize their return on a benefits package, companies must

communicate benefits information effectively to all employees

An employer may hire more part-time workers than full-time ones to

control benefit costs

What are the main kinds of medical expenses that company health care plans help cover?

costs of going to the hospital costs of surgery costs of visiting the doctor

What kinds of benefits are provided by workers' compensation?

death benefits disability income rehabilitative services medical coverage

Which of the following health care costs connected to employer-sponsored health insurance plans has increased the most over time for employee

deductibles

In addition to contributing to the cost of the health care premium, employees are also responsible for paying these other costs.

deductibles co-insurance co-payments

Family-friendly policies help companies do which of the following?

demonstrate their concern for the wellbeing of their employees promote loyalty of workers to company balance work and family

The major types of insurance provided by employers include which of the following?

disability medical

Under amendments to the Age Discrimination in Employment Act, it is illegal for employers to

discriminate against workers over age 40 in regard to pay or benefits

A defined contribution plan puts the responsibility for wise investing squarely on the shoulders of the

employee

In the United States the amount of sick leave given to employees is often based on the

employee's years of service

Company pensions are designed to encourage ______

employees to work for a company for a long time

Who makes all of the payments into a cash balance plan

employer

An employer's costs for workers' compensation insurance is based on which of the following factors?

experience rating of the employer the types of jobs its employees do state where employer is located

The unemployment insurance program is financed primarily through

federal and state taxes on employers

Which U.S. employees do not receive Social Security benefits?

federal workers state workers railroad workers

What is the term for benefits packages in which employees have the freedom to choose the benefits they would like?

flexible benefits plan

A program that permits pretax employee contributions to be used to pay for uncovered health care expenses is called a(n) _____ account

flexible spending

Independent contractors are also known by these names

freelancers outsourced workers

Employers can obtain competitive information about other employers' benefit packages through which of the following?

hiring private consultants the Bureau of Labor Statistics the U.S. Chamber of Commerce

Money spent on health care in the United States has ______ since 1960

increased dramatically

To eliminate the employer's obligation to provide employee benefits, an organization is more likely to classify workers as

independent contractors

Which of the following is the type of child care support offered by the largest percentage of employers?

information about the cost and quality of available child care

What is a defined benefit plan?

it guarantees a specified retirement benefit level to employees based on their age, years of service, and earnings level.

In general, employees typically receive more benefits in ______ companies.

larger

Which employee benefit gives employers the best opportunity for cost containment

medical benefits

what type of benefit allows employees to travel abroad to seek cheaper medical care

medical tourism benefit

What is the legal minimum of paid days off required for employees of U.S. companies

no minimum

A qualified benefits plan must

offer benefits to a variety of employees, not just senior level ones

Passive employee wellness programs

offer limited or zero support to program participants

Social Security retirement benefits are financed by a(n) _____

payroll tax assessed to both the employer and the employee

Employee benefits may include ______

policies that assist families insurance retirement packages

The rise in the number of ______ workers reflects an effort by employers to limit overtime pay because most of these workers are exempt

salaried

A good source for credible cost information about competitors' benefits packages is

the Bureau of Labor Statistics

Which federal law mandates certain employers to provide 12 weeks of unpaid leave to employees to care for newborns, adopted children, and seriously ill relatives among other reasons?

the Family and Medical Leave Act

Which of the following nations spends the most on health care

the United States

Which factors should companies consider when working to control the cost of employee benefits?

the company's "experience ratings" if the cost of benefits categories is forecasted to increase in the future the amount spent on benefits that are legally required

What is the major advantage of a flexible spending account

the increase in take-home pay that results from pretax payment of health expenses

What factors have contributed to the enormous expansion of employee benefits

the marginal tax rate federal government legislation passed during the Great Depression controls of wages and prices implemented during World War II

How the federal government taxes disability benefits is contingent upon

the way the disability policy is funded

What should be a key factor in designing an employee benefits package?

the wishes of current employees

How can companies assess employee preferences for specific benefits?

through questionnaires through focus group discussions through interviews

Which of the following are conditions for an unemployed worker to be eligible for benefits under unemployment insurance?

to be currently looking for work to have worked for a specific amount of time at a job to be ready to work

What are some of the goals of unemployment insurance?

to encourage employers to retain employees and not lay them off to help unemployed workers secure new work to financially support unemployed workers during unemployment

Why does the government offer two types of vesting schedules for employers and their pension plans

to prevent companies from firing employees before they are fully vested in the pension plan

By law, employees who participate in an employer pension plan have_______ rights that guarantee access to the benefits of the plan according to a five- or seven-year schedule

vesting

Providing a comprehensive employee benefits plan has a definitive impact on which of the following?

when a person will retire from the company how long a person will work at the company who will accept a position at the company