Human Resource management- chapter 13
What are some of the characteristics of employee wellness programs (EWPs)? (Select all that apply.)
-They are often designed to target certain health care issues, such as high blood pressure. -They often try to promote positive health influences, such as good nutrition. -They work to lower the amount an employer must spend on employee health care.
How can companies assess employee preferences for specific benefits?
-Through questionnaires -Through interviews -Through focus group discussions
What factors have contributed to the enormous expansion of employee benefits? (Select all that apply.)
-controls of wages and prices implemented during World War II -federal government legislation passed during the Great Depression -the marginal tax rate
What are the main kinds of medical expenses that company health care plans help cover? (Select all that apply.)
-costs of going to the hospital -costs of visiting the doctor -costs of surgery
Employee benefits may include ______. (Select all that apply.)
-policies that assist families -retirement packages -insurance
What impact does FAS 106 have on companies?
Companies must carry the future costs of retiree benefits on their current financial statements.
How are workers' compensation benefits typically funded?
Employers purchase coverage from insurance companies.
What is they key part of the ACA that most concerns businesses?
The employer mandate
Which of the following should be a key factor in designing an employee benefits package?
The preferences of current workforces
To maximize their return on a benefits package, companies must ______.
communicate benefits information effectively to all employees
Which of the following was a factor in the growth of employee benefits in the middle of the 20th century?
organized labor
Social Security retirement benefits are financed by a(n) ______.
payroll tax assessed to both the employer and the employee
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 is the name of the law that was enacted in 2010 to provide health care benefits to more Americans?
Affordable Care Act
Which employee benefit gives employers the best opportunity for cost containment?
medical benefits
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 Blank______.
offer limited or zero support to program participants
Which of the following statements about the number of hours worked by employees are true? (Select all the apply.)
-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.
How does the use of on-site health care help companies save money on health care costs? (Select all that apply.)
-by reducing employee use of emergency room care -by diagnosing chronic conditions early
Independent contractors are also known by these names. (Select all that apply.)
-outsourced workers -freelancers
Employers can obtain competitive information about other employers' benefit packages through which of the following? (Select all that apply.)
-the U.S. Chamber of Commerce -the Bureau of Labor Statistics -hiring private consultants
Which of the following are conditions for an unemployed worker to be eligible for benefits under unemployment insurance? (Select all that apply.)
-to be ready to work -to have worked for a specific amount of time at a job -to be currently looking for work
To receive Social Security benefits, a qualified worker must work how many quarters of covered employment?
40
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 a defined benefit plan?
It guarantees a specified retirement benefit level to employees based on their age, years of service, and earnings level.
What type of benefit allows employees to travel abroad to seek cheaper medical care?
Medical tourism benefit
The largest portion of an average retiree's income comes from which of the following?
Social Security
Which of the following statements about employer-sponsored insurance plans is true?
Two major types of plans are medical insurance and disability insurance.
Which of the following is designed to protect employee pensions from potential financial troubles a company might endure?
a defined benefit plan
An employer may hire more part-time workers than full-time ones to ______.
control benefit costs
The rise in the number of ______ workers reflects an effort by employers to limit overtime pay because most of these workers are exempt.
salaried
True or false: Due to the Fair Labor Standards Act, employers may try to have employees classified as nonexempt to avoid paying overtime.
False
True or false: Most organizations have a written document that summarizes the goal(s) of their various benefits programs, which helps them measure the outcomes of providing those benefits.
False
True or false: The tax treatment of benefits programs is often less favorable for employees than the tax treatment of wages and salaries.
False
Which of the following statements about retirement benefits is true?
Firms have started reducing retiree benefits.
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
Which of the following statements about retirement benefits is true?
Social Security is a legally required source of retirement income.
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? (Select all that apply.)
Some companies have discontinued providing health care benefits to white-collar retirees.
True or false: When employee payments entirely subsidize disability coverage, no federal tax is paid on the money paid out to the employee.
True
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
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
The unemployment insurance program is financed primarily through ______.
federal and state taxes on employers
Money spent on health care in the United States has ______ since 1960.
increased dramatically
What are some advantages of flexible benefits plans? (Select all that apply.)
-Employees are more aware of the value of their benefits. -Employees can gain greater awareness of what the employer provides for them. -Employees can choose the benefits plans that work best for them. -Cost control of benefits may occur, which is economical for the employer.
Which strategies can employers use to control employee benefit costs? (Select all that apply.)
-Hire temporary workers. -Hire contingent workers. -Hire part-time workers.
Which of the following describe a defined contribution plan? (Select all that apply.)
-It does not guarantee a certain benefit level to the employee upon retirement. -It requires less administrative oversight on the part of the employer.
Which of the following describe a defined contribution plan? (Select all that apply.)
-It requires less administrative oversight on the part of the employer. -It does not guarantee a certain benefit level to the employee upon retirement.
Which of the following is true for employees who sign up for a health maintenance organization (HMO) health care plan? (Select all that apply.)
-They have benefits that are prepaid. -They can only use HMO services.
In addition to contributing to the cost of the health care premium, employees are also responsible for paying these other costs. (Select all that apply.)
-co-insurance -deductibles -co-payments
Which of the following are defined contribution plans? (Select all that apply.)
-employee stock ownership plans -profit sharing plans -money purchase plans
What do workers' compensation laws cover? (Select all that apply.)
-job-related death -job-related injuries
The major types of insurance provided by employers include which of the following? (Select all that apply.)
-medical -disability
Family-friendly policies help companies do which of the following? (Select all that apply.)
-promote loyalty of workers to company -demonstrate their concern for the wellbeing of their employees -balance work and family
Which U.S. employees do not receive Social Security benefits? (Select all that apply.)
-state workers -railroad workers -federal workers
Which factors should companies consider when working to control the cost of employee benefits? (Select all that apply.)
-the company's "experience ratings" -the amount spent on benefits that are legally required -if the cost of benefits categories is forecast to increase in the future
Which of the following are ways employers can improve communication about benefits to employees? (Select all that apply.)
-thinking of employees as customers -communicating the value of benefits on a regular, ongoing basis -tailor benefit information to different employee groups
Which groups of employees are not covered by the provisions of the Family and Medical Leave Act of 1993? (Select all that apply.)
-those who are among the top 10% of earners at the company -those who have worked at a company for less than one year
What are some of the goals of unemployment insurance? (Select all that apply.)
-to help unemployed workers secure new work -to encourage employers to retain employees and not lay them off -to financially support unemployed workers during unemployment
Providing a comprehensive employee benefits plan has a definitive impact on which of the following? (Select all that apply.)
-who will accept a position at the company -when a person will retire from the company -how long a person will work at the company
What is the full retirement age for Social Security benefits to begin for workers born in 1960 or later?
67 years
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
In which type of retirement plan does an employee's account earn a predetermined interest rate?
a cash balance plan
Which of the following health care costs connected to employer-sponsored health insurance plans has increased the most over time for employees?
deductibles
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
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
How the federal government taxes disability benefits is contingent upon ______.
the way the disability policy is funded
The Family and Medical Leave Act of 1993 applies to companies of what size?
those with more than 50 employees
Why have some companies set up voluntary employee benefit association (VEBA) trusts?
to move retiree health care obligations off their financial statements
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
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
Which of the following are drawbacks associated with on-site child care facilities? (Select all that apply.)
-Child care centers have liability issues. -Establishing a child care center is expensive. -Employee absenteeism is not always reduced.
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
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 is considered the simplest type of defined contribution plan?
a money purchase plan
Employees' most preferred method for receiving information about benefits is through which of the following?
an online portal
Controlling labor costs is not possible without also controlling ______.
benefits costs
The cost advantages associated with ______ contributed to the growth in employee benefits.
economies of scale
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 length 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
To eliminate the employer's obligation to provide employee benefits, an organization is more likely to classify workers as ______.
independent contractors
In general, employees typically receive more benefits in ______ companies.
larger
Increasing access to health care and helping employees make better use of it can be done through which of the following?
providing on-site health care for employees
Passive employee wellness programs ______.
offer limited or zero support to program participants
Which of the following benefits is least commonly offered by employers?
on-site subsidized child care