Ch. 12 Learnsmart Q/A

T/F: The broad objective of the design of compensation programs is to integrate salary and benefits into a package that will encourage the achievement of an organization's goals.

True

Which of the following are ways that Social Security will have to be reformed to meet long-term funding needs? (Choose all that apply.) a. Adjusting benefits for high versus low earners. b. Lowering revenues c. The system doesn't need to be reformed d. Raising revenues

a. Adjusting benefits for high versus low earners. d. Raising revenues

Which of the following are approaches used to express the costs of employee benefits and services? (Choose all that apply.) a. Annual cost of benefits for all employees b. Cents per day c. Percentage of paycheck d. Cost per employee per year

a. Annual cost of benefits for all employees d. Cost per employee per year

Identify the examples of employee services. (Choose all that apply.) a. Child care b. Tuition aid c. Pension plans d. 401K

a. Child care b. Tuition aid

Which of the following principles have the greatest impact on benefits? (Choose all that apply.) a. Doctrine of constructive receipt b. Doctrine of benefits received c. Doctrine of tax benefits d. Anti-discrimination rule

a. Doctrine of constructive receipt d. Anti-discrimination rule

Who pays for most of the nation's health-care premiums? a. Employers b. Doctors c. Government d. Employees

a. Employers

_____ refer to accounts in which employees can deposit pretax dollars to pay for additional benefits. a. Flexible-spending accounts b. Cafeteria accounts c. Additional accounts d. Benefit accounts

a. Flexible-spending accounts

What type of health plan is a consumer-driven health plan? a. Health savings account b. Medicare c. Employee spending plan d. HMO

a. Health savings account

Which of the following are the requirements an unemployed worked must meet to receive benefits from unemployment insurance? (Choose all that apply.) a. Must not be unemployed from a labor dispute b. Must have left the job voluntarily c. Must be actively seeking work d. Must have gotten terminated for gross misconduct

a. Must not be unemployed from a labor dispute c. Must be actively seeking work

The PPA provides ______ protection for employers from complex and costly compliance regulations. a. Safe harbor b. Life cycle c. No d. 50/50

a. Safe harbor

When companies implement programs for health promotion, companies save about _____ for every dollar spent. a. $5.20 b. $3.40 c. $2.50 d. $4.30

b. $3.40

An illness or accident will keep one in ____ employees out of work for at least a year before the age of 65. a. 6 b. 5 c. 3 d. 10

b. 5

In how many American states is workers' compensation required by law? a. 17 b. 50 c. 35 d. 48

b. 50

What are benefits provided under a plan that allows employees to choose their benefits from the alternatives offered by the organization? a. Choice benefits b. Cafeteria benefits c. Standard benefits d. Preferred benefits

b. Cafeteria benefits

What should guide decision making in the context of total compensation strategy? (Choose all that apply.) a. Equality for all b. Cost control c. Non-efficiency d. Equity

b. Cost control d. Equity

What principle states that an individual must pay taxes on benefits that have monetary value when the individual receives them? a. Anti-discrimination rule b. Doctrine of constructive receipt c. Doctrine of benefits received d. Doctrine of tax benefits

b. Doctrine of constructive receipt

What is the most common reason that organizations offer formal flexible work arrangements? a. Work-life balance b. Employee requests c. Competition in attracting employees d. Technological advances

b. Employee requests

Which of the following are reasons benefits have grown? (Choose all that apply.) a. Imposition of wage floors b. Employers "taking care" of their employees c. Unions not caring about wages since employees are not paying their dues d. Tax treatment making benefits preferable to wages

b. Employers "taking care" of their employees d. Tax treatment making benefits preferable to wages

Identify the objectives in communicating benefits. (Choose all that apply.) a. Knowing what coworkers are receiving. b. Helping employees understand. c. Making employees aware. d. Hiding certain information from employees.

b. Helping employees understand. c. Making employees aware.

Which of the following do the payments of workers' compensation cover? (Choose all that apply.) a. Retraining to not go back to work b. Medical treatment and rehabilitation costs c. Payments to replace lost wages d. Family suffering

b. Medical treatment and rehabilitation costs c. Payments to replace lost wages

_____ are plans in which the employer pays the full cost of the premiums. a. Contributory plans b. Noncontributory plans c. Risk-free plans d. Full liability plans

b. Noncontributory plans

Which of the following are circumstances in which an employer needs to offer health care coverage to avoid getting a penalty? (Choose all that apply.) a. The employees perceiving health insurance as beneficial b. Once employee receiving a tax credit for health-coverage premiums c. More than 50 full-time employees d. More than 30 full-time employees

b. Once employee receiving a tax credit for health-coverage premiums c. More than 50 full-time employees

What plans do employers rate as the most effective of all absence-control programs? a. HMO b. PTO c. ACE d. EAC

b. PTO

The _____ Act allows full retirement payments after age 67. a. Retirement Amendment b. Social Security c. Employee Retirement Income Security d. Federal Unemployment

b. Social Security

Under which law do benefits average about 2/3 of an employee's weekly wage and continue for the term of the disability? a. COBRA b. Workers' Compensation c. Rehabilitation Act d. ERISA

b. Workers' Compensation

For each dollar an employee earns, they earn _____ cents in employee benefits. a. 15 b. 60 c. 30 d. 45

c. 30

What act eliminated mandatory retirement at a specific age for most jobs? a. Discriminatory Age Act b. American Age Employment Act c. Age Discrimination in Employment Act d. American Discrimination Age Act

c. Age Discrimination in Employment Act

Which of the following are factors that affect the amount of severance pay a person receives? (Choose all that apply.) a. Amount the company makes b. Competition among competitors c. Cause of termination d. Length of service

c. Cause of termination d. Length of service

What law deals with pension plans? a. ACA b. PBGC c. ERISA d. COBRA

c. ERISA

Managed care relies on a _____ system of cost controls. a. Monetary b. Financial c. Gatekeeper d. Consumer-driven

c. Gatekeeper

What act includes strict provisions to safeguard employee privacy? a. ADA b. ERISA c. HIPAA d. COBRA

c. HIPAA

What of the following are included in a paid time-off plan? (Choose all that apply.) a. FMLA b. Breaks over 30 minutes c. Sick leave d. Personal days

c. Sick leave d. Personal days

Group life insurance, in which each employee is insured one year at a time, is called _____. a. 365 day insurance b. Year-to-year insurance c. Yearly renewable term insurance d. Renewable group insurance

c. Yearly renewable term insurance

To what law did the Pension Protection Act of 2006 make changes? a. ISSA b. COBRA c. ARA d. ERISA

d. ERISA

In the context of pension plan termination, employees must be _____ in order to entitled to any benefits in their pension plans. a. Retiring b. Terminated c. Hard workers d. Vested

d. Vested