Lecture 2 Questions

What did ERISA, the granddaddy of all benefit legislation, not do

*Required* employers to establish and administer plans fairly for all employees

Tax deferred means

Amounts contributed by an employee or an employer are not currently taxed until distributed

These two regions lead the world in population

Asia & Africa

It is estimated that by 2050, the fastest growing group will be

Asians

Tax exempt means

At the time the benefit is provided by the employer, there is no current taxation to the employee

Tax free means

Benefit when actually received by the employee is free from taxation

Certain forms of compensation are exempt from constructive receipt, such as

Benefits that are within a qualified plan

Labor cost differentials (what different countries pay for labor) has resulted in about 2.5 million US jobs being offshored. Which jobs are most likely to be offshored

Call-center and customer service Software development, maintenance, testing, R&D Back-office accounting/mortgage processing/tax form preparation all of the above

What is constructive receipt?

Cash or property received for a service is immediately taxable

By 2050, which three countries will decline in population

China, Russia & Japan

And, when you think of demographics and its impact on benefits, what should a business professional with a specialty in employee benefits do

Design products and services that satisfy corporation and employee needs Ensure programs are flexible enough to react to changing environment Plan Strategically and then execute flawlessly all of the above

It is estimated that by 2050, Hispanics will

Double from 11% to 24%

From an employer's perspective, what are the top objectives for a benefit program

Employee retention and control of health care costs Increased morale and productivity Attract new employees all of the above

What role does the Department of Labor play in employee benefit plans

Ensures participants and beneficiaries are treated fairly within qualified plans

Tax deductible means

For a company, the expense for providing a benefit is treated as a deduction to their income

Millennials worry about which financial pressure

Having progress towards future financial security

Which is a major concern for all segments of the working population

Having security in their jobs

Employer payments are tax deductible, tax exempt to the employee and tax free *when received*. What benefit plan has these tax advantages features

Health care

Under the US tax code, what are the two biggest tax exclusions

Health insurance and Retirement plans

Of legal immigrants in the U.S., which two groups have the highest percentage of immigrants

Hispanic & Asian

What role does the Internal Revenue Service play in employee benefit plans

Incent employers to provide plans through special tax treatment

Which of these is not an employer approach to diversity in the workforce

Incorporating bias based recruiting practices to secure talent

By 2050, African Americans will

Increase from 12% to 14%

Employee choice within a benefit program

Increases loyalty and engagement

Employers are starting to recognize that wellness is not only important in health but also in

Managing finances

Of the four generation groups, this is the largest in the workforce

Millennials

Gen X and Millennials will contribute _______ to meet the economic security and access to services needs of the Baby Boomers

More

The labor force is a product of which trend or attribute

Population Increase or Decrease Workforce Participation Rates Immigration Trends all of the above

When thinking of benefits in society, what do they do?

Promote economic security by insuring against uncertain events Raise living standards by providing targeted services Add to economic stability by helping to secure the income and welfare of families all of the above

A real HR opportunity and impact can be realized by

Providing financial education

Employer payments are tax deductible, tax exempt and tax deferred to the employee *until received*. What benefit plan has these tax advantages features

Retirement plans

By 2020 it is projected that 80% of U.S. jobs will be

Service based

What is not a primary demographic of the labor force

Technology

From an employee's perspective, which is considered to be most important regarding an employer benefits program

Understands the financial pressures on me and my colleagues

When you think of demographics and its impact on companies, what are these demographic factors not causing an impact?

Unlimited supply of workers with right skills and experiences

These benefits are fully taxable when received

Vacation and Holidays

In 2015, the population of the world was 7.2 billion people. By 2050 it is projected to grow to

9.2 billion

Employee benefit plans represent

A strategic necessity for business and HR

When thinking about older employees, what are the primary reason older workers stay in the work-force

Access to income and health care

When it comes to government programs, Medicare has experienced a significant hit from these two factors

Age longevity and health care inflation

In 2014 there were 2.8 active workers for each retiree receiving Social Security benefits. By 2085, the ratio of active workers to retirees will be

1.9

Of the total US workforce in 2014, what percentage is represented by a union?

12.3%

Immigrants as a percentage of the workforce reached what level in 2010

13%

Immigrants comprise 16% of the workforce and contribute what percentage to U.S. economic output

15%

In 1950, health care represented 5% of the Gross Domestic Product (GDP) of the U.S. In 2015, that percentage increased to

18%

By 2020, it is estimated that the over age 55 population will make up what percentage of the workforce

25%

By 2050, women participation in the workforce will reach what percentage

52%

In 1950, 37% of all women were employed in the workforce. By 2050 that percentage is projected to be

58%

If born in 2010, a male could expect to live until and a female until

76 male and 81 female

Employee Benefits has a significant impact on job satisfaction. In fact, what percentage of employees say so

81%

The drivers of change in the current business environment include

The restructuring of the economy and global competition Technology enhancements and changing labor force demographics Federal and state legislation, regulation and mandates all of the above

The fastest growing segment of the population is what age category?

Those over age 85

Tax deductible also means

To the individual, certain benefits are deductible from their income

Which of the following is not likely to be important to employers regarding benefit programs

Transactional administration

By 2050, it is estimated that whites in the workforce will

decrease from 73% to 53%