MGT 434 Topic 3 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

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

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 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

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

Affordable Care Act

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 are some advantages of flexible benefits plans?

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

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: 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 strategies can employers use to control employee benefit costs?

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

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 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.

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

Larger

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.

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?

The benefits cost per hour can be reduced by having employees work longer hours. 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.

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

The future of the ACA is unclear.

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

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

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

They work to lower the amount an employer must spend on employee health care. 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.

True or false: When employee payments entirely subsidize disability coverage, no federal tax is paid on the money paid out to the employee

True

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

a cash balance plan

Which of the following is designed to protect employee pensions from potential financial troubles a company might endure?

a defined benefit plan

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

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

co-insurance co-payments deductibles

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

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

deductibles

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

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

The unemployment insurance program is financed primarily through ______.

federal and state taxes on employers

What factors have contributed to the enormous expansion of employee benefits?

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

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

flexible benefits plan

Independent contractors are also known by these names.

freelancers outsourced workers

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

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 ______. Multiple choice question.

offer limited or zero support to program participants

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

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

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?

railroad workers state workers federal workers

Employee benefits may include ______.

retirement packages policies that assist families insurance

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

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

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

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

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 interviews through focus group discussions through questionnaires

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 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

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

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