HMR CH 14, HRM XXX Ch14.8
two-thirds
Generally it is ______ of the worker's earnings before the disability.
Chad finds that he meets the eligibility requirements for Social Security. He elects to receive retirement benefits at 62. Which statement is true?
He will receive benefits at a permanently reduced level.
Which type of health care plan contracts with health care professionals to offer services at lower rates?
Preferred provider organization (PPO)
Defined-Contribution Plan
Retirement plan in which the employer sets up an individual account for each employee and specifies the size of the investment into that account.
Employee Wellness Programs (EWP)
Six employer approaches to controlling health care benefits costs: What is the main one?
Which of the following benefits provided by employer is required by law in the United States?
Social Security contributions
Jacob is a new father. His company helps Jacob by collecting information about the cost and quality of available child care. Which of the following is true of the child care provided by Jacob's company?
The child care provided by the company is at the lowest level of involvement.
cafeteria-style plan
a benefits plan that offers employees a set of alternatives from which they can choose the types and amounts of benefits they want
Organizations must communicate benefits information to employees so that they will
appreciate the value of their benefits.
82. Benefit plans that permit employees to choose the types and amounts of benefits they want from a set of alternatives are called A. preferred provider plans. B. cafeteria-style plans. C. defined-benefit plans. D. flexible spending accounts. E. cash balance plans.
b
Employee benefits at Great Nile, an online retailer, include a basketball team, a gym, and an on-site massage therapist. In what way are these benefits most likely to support the company's business goals?
by helping employees cope with demanding, high-stress jobs
66. Steve is a human resource manager at an advertising firm. Steve proposes that the company adopt defined-benefit plans to attract and retain its employees. In which situation will this benefit be most valuable to the firm's employees? A. all the employees are under the age of 30 B. the nature of work demands college graduates C. the firm employs experienced, older people D. the firm employs young and creative minds E. the firm mainly employs freelancers
c
employee benefits
compensation in forms other cash
Under some circumstances, an adult who is not a relative or spouse, is financially interdependent, and lives permanently with another adult can be legally defined as a ________ partner.
domestic
100. Organizations must communicate benefits information to employees so that they will A. be motivated to work harder. B. choose the least-expensive benefits package. C. be legally liable in an employee lawsuit. D. be informed of future career opportunities within the organization. E. appreciate the value of their benefits.
e
103. Martin, the HR vice president at Ace Trucking, evaluates responses from an employee survey and questions at the company's annual benefits presentation. He concludes that many employees are confused about their options for health insurance and often unhappy with the policy they choose. What should Martin do about this situation? A. accept that it is difficult for employees to understand the value of insurance B. save money by reducing printed messages about health insurance C. downplay the role of health insurance in the benefits package, relative to other benefits D. discontinue health insurance, since it is a source of dissatisfaction E. introduce software that will guide employees to the insurance option for their needs
e
78. According to your text, a logical place to begin selecting employee benefits is to establish _____ for the benefits package. A. a basic hierarchy B. limits C. costs D. goals E. objectives
e
Health care
for employers with at least 50 employees, payment of a fee to the federal government if the employer does not meet conditions for providing health insurance benefits
consumer-driven health plans (CDHP)
health care plans that provide incentives for employees to make decisions that help lower health care costs
Short-Term Disability Insurance
insurance that pays a percentage of a disabled employee's salary as benefits to the employee for six months or less
Elder Care Benefits
most employers offer employees information and referrals for care facilities.
Sick leave programs
pay employees for days not worked due to illness.
Non-contributory plan
retirement plan funded entirely by employer contributions.
Joachim is a financial analyst at a local housewares manufacturer. He knows that saving for college for his 5-year-old twin boys is important but also challenging. He was excited to learn that his employer planned to implement a college tuition plan that lets parents and other family members defer taxes on their contributions to the plan. What is the type of plan being implemented?
529 savings plan
What steps would help an organization choose which benefits to offer employees?
Ask employees how much they care about each benefit. Write down what the organization wants the benefits package to accomplish. Monitor the benefits to determine if they are achieving the objectives.
Marcus is the owner of a restaurant called Top Hat Diner. He decides to increase employee motivation by introducing benefit packages. However, Sarah, the manager, suggests that employees will be more motivated if Marcus increases their actual wages. Which statement, if true, strengthens Sarah's argument?
Benefit packages are more difficult for employees to understand and appreciate than pay structures
What is a similarity between unemployment insurance benefits and workers' compensation benefits?
Both of the programs' costs depend on the organization's experience ratings
Which of the following is a similarity between unemployment insurance benefits and workers' compensation benefits?
Both of the programs' costs depend on the organization's experience ratings.
Evan is the human resource manager of a one-year-old technology company. The founder wants him to set up a retirement plan. Evan thinks the best approach during the company's early years would be a defined-contribution plan funded with profit-sharing dollars. Which statement best supports Evan's idea?
Contributing a share of profits gives the company more flexibility as it establishes itself.
Ian is the human resource manager of a one-year-old technology company. The founder wants him to set up a retirement plan. Ian thinks the best approach during the company's early years would be a defined-contribution plan funded with profit-sharing dollars. Which statement best supports Ian's idea?
Contributing a share of profits gives the company more flexibility as it establishes itself.
-Kinds of occupations involved -State where company is located -Employer's experience rating
Cost of workers' compensation insurance depend on:
Money Purchase Plan
Defined contribution plan that specifies a level of annual contributions to be invested.
Flexible Spending Account
Employee-controlled pretax earnings set aside to pay for certain eligible expenses, such as health care expenses, during the same year.
Section 401(k) plans
Employees contribute a percentage of their earnings, and employers may make matching contributions. The amount employees contribute is not taxed as part of their income until they receive it from the plan. The federal government limits the amount that may be contributed each year. The limit is $17,500 in 2014 and is subject to cost-of-living increases in years after 2014. The contribution limits are higher for persons 50 and older.
As Troller Inc., a garden equipment manufacturer, grows more profitable, it wants to become more competitive as an employer in the labor market. Evette, the human resource manager, urges the company to develop a more attractive package of benefits, rather than simply raising salaries. Which statement best supports Evette's argument?
Employees do not pay income taxes on most benefits they receive
As Monty Corp., a shoe manufacturer, grows more profitable, it wants to become more competitive as an employer in the labor market. Juliet, the human resource manager, urges the company to develop a more attractive package of benefits, rather than simply raising salaries. Which statement best supports Juliet's argument?
Employees do not pay income taxes on most benefits they receive.
As Ray Inc., a shoe manufacturer, grows more profitable, it wants to become more competitive as an employer in the labor market. Tanya, the human resource manager, urges the company to develop a more attractive package of benefits, rather than simply raising salaries. Which of the following statements best supports Tanya's argument?
Employees do not pay income taxes on most benefits they receive.
Employees' Expectations and Values
Employees expect to receive benefits that are legally required and widely available. They value benefits they are likely to use. The value employees place on various benefits is likely to differ from one employee to another.
Trilogy Inc. has a benefits package that includes paid vacations and sick leave. The human resource manager proposes shifting this time into a bank of paid time off. What would be an advantage of this change?
Employees have more flexibility and privacy for their personal matters
Which federal law requires employers with 50 or more employees to provide up to 12 weeks of unpaid leave after childbirth or adoption?
Family and Medical Leave Act
Benefits Required by Law: Social Security
Federal Old Age, Survivors, Disability and Health Insurance (OASDHI) program (Social Security)combines: Old age (retirement) insurance Survivor's insurance Disability insurance Hospital insurance (Medicare Part A) Supplementary medical insurance (Medicare Part B)
Pension Benefit Guarantee Corporation (PBGC)
Federal agency that insures retirement benefits and guarantees retirees a basic benefit if the employer experiences financial difficulties.
Family and Medical Leave Act
Federal law requiring organizations with 50 or more employees to provide up to 12 weeks of unpaid leave after childbirth or adoption; to care for a seriously ill family member or for an employee's own serious illness; or to take care of urgent needs that arise when a spouse, child, or parent in the National Guard or Reserve is called to active duty
Employee Retirement Income Security Act (ERISA)
Federal law that increased the responsibility of pension plan trustees to protect retirees, established certain rights related to vesting and portability, and created the Pension Bene- fit Guarantee Corporation.
Consolidated Omnibus Budget Reconciliation Act (COBRA)
Federal law that requires employers to permit employees or their dependents to extend their health insurance coverage at group rates for up to 36 months following a qualifying event, such as a layoff, reduction in hours, or the employee's death.
Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985
Federal law that requires employers to permit employees or their dependents to extend their health insurance coverage at group rates for up to 36 months following a qualifying event: Layoff Reduction in hours Employee's death
Consolidated Omnibus Budget Reconciliation Act (COBRA)
Federal law that requires employers to permit employees or their dependents to extend their health insurance coverage at group rates for up to 36 months following qualifying event, such as layoff, reduction in hours, or the employees death.
YOUR First Day on the Job
Find out in advance what your options are. Form W4 - How many dependents will you claim? How many people will you need to cover with health insurance? Is spouse covered at their job? Do you need a "medical savings account"? What % of contributions will you make to your retirement plan? Or is it fixed? Do you want short/long-term disability insurance? Do you want extra term-life insurance?
Vesting rights
Guarantee that when employees become participants in a pension plan and work a specified number of years, they will receive a pension at retirement age, regardless of whether they remained with the employer.
Which benefits are provided to almost 90% of full-time employees?
Health care insurance
Gabriela, an HR manager, and her staff devote long hours to planning and running a "benefits fair," where employees can view displays and ask questions about the various parts of the company's benefits package. The following week, the marketing manager asks if the effort was worthwhile. Gabriela says it was. What is the most likely reason for Gabriela's opinion?
It increased employees' commitment and satisfaction, so they contribute more to the company.
In a meeting to discuss pension plans, management decides to offer retirement plans exclusively to the organization's owners and top managers. Steven, one of the top managers, disagrees with this decision because he believes the company can benefit more by providing pensions to a broad range of employees. Which of the following strengthens Steven's belief?
Nondiscrimination rules provide tax benefits to plans that do not favor the organization's highly compensated employees.
Defined-Benefit Plan
Pension plan that guarantees a specified level of retirement income.
Which act requires that employers treat pregnancy as it would any other disability?
Pregnancy Discrimination Act
Summary Plan Description (SPD)
Report that describes a pension plan's funding, eligibility requirements, risks, and other details.
Cash Balance Plan
Retirement plan in which the employer sets up an individual account for each employee and contributes a percentage of the employee's salary; the account earns interest at a predefined rate..
During a meeting to discuss ways to cut costs on benefit packages, the vice president of the company, Harold, suggests getting long-term disability insurance for all employees. Alexis, HR manager, disagrees with him stating that short-term disability coverage is more advantageous for the company. Which of the following supports Alexis' statement?
Short-term disability plans limit maximum coverage in a month, which makes them more affordable for the company.
Ryan was working as an engineer at a paint manufacturing company. A chemical spill at the factory caused an accident that left him permanently disabled. Which of the following programs is specifically designed to help employees like Ryan?
Social Security
Toby is an engineer at a paint manufacturing company. However, a chemical spill at the factory caused an accident that left him permanently disabled. Which program is specifically designed to help employees like Toby?
Social Security
Brett, the vice president of Foster Co., plans to introduce a retirement plan for all employees. Yon, the operations director, disagrees because the proposed plan would increase the company's costs. Which statement, if true, strengthens Brett's argument?
Some benefits have become so common that today's employees expect them
Fred, the vice president of Gallway Co., plans to introduce a retirement plan for all employees. Ron, the operations director, disagrees because the proposed plan would increase the company's costs. Which statement, if true, strengthens Fred's argument?
Some benefits have become so common that today's employees expect them.
Workers' compensation
State programs that provide benefits to workers who suffer work-related injuries or illnesses, or to their survivors.
_____ strictly limits the definition of "independent contractors," so that employers cannot avoid legal obligations by classifying workers as self-employed when the organization receives the benefits of a permanent employee.
The Internal Revenue Service
________ strictly limits the definition of "independent contractors," so that employers cannot avoid legal obligations by classifying workers as self-employed when the organization receives the benefits of a permanent employee.
The Internal Revenue Service
Under a money purchase plan what is the employee entitled to receive when he/she retires?
The amount of contributions plus the investment earnings
Which statements about paid time off in the United States are true?
The average number of paid vacation days is 23. Many employees who are entitled to paid time off will NOT take all of it. Paid time off is NOT required by law.
What is true of a cash balance plan?
The money earns interest at a predetermined rate, such as the rate paid on U.S. Treasury bills.
An organization employs Rick, a bilateral amputee, to work as a research analyst. When Sarah, the organization's chief advisor, becomes aware of this, she argues that the organization is going to experience legal challenges. According to the Americans with Disabilities Act, which of the following will strengthen Sarah's argument?
The organization switched to a risk-based policy after hiring Rick.
Which of the following describe a health maintenance organization (HMO)?
The patient pays nothing at the time of service, because premiums cover all visits and procedures in advance. Physicians work on salary instead of being paid a fee for each service. Patients are allowed to see only medical personnel who are affiliated with the HMO.
Profit-sharing and employee stock ownership plans
These payments may be set up so that the money goes into retirement plans. The organization has more flexibility to contribute less dollar value in lean years and more in good years.
Under the Family and Medical Leave Act, which criteria makes employees eligible to take unpaid family leave?
They should be working for an organization with 50 or more employees within a 75-mile radius.
Under the Family and Medical Leave Act, which of the following criteria makes employees eligible to take unpaid family leave?
They should be working for an organization with 50 or more employees within a 75-mile radius.
1. They meet requirements demonstrating they had been employed. 2. They are available for work. 3. They are actively seeking work. 4. They were not discharged for cause, did not quit voluntarily, and are not out of work because of a labor dispute.
To receive benefits, workers must meet four conditions: (Unemployment insurance)
domestic partners (same sex partners)
Today, many employers also cover __________ __________. Adult non-relatives who lives with the employee in a relationship defined as permanent and financially interdependent.
In the United States, what is the legal requirement for giving employees paid vacation?
U.S. law lets employers decide on paid time off; there is no minimum.
What is a true of unemployment insurance?
Unfavorable experience ratings of employers lead to higher premiums.
Which of the following is a true of unemployment insurance?
Unfavorable experience ratings of employers lead to higher premiums.
76. James is the founder of a new start-up company. He hires mostly young employees who are fresh out of college. He finds that most of his employees are willing to develop their knowledge and skills and would like to take courses to improve themselves. This additional knowledge would benefit James' company, so he decides to encourage this behavior. Which of the following programs is James most likely to use in order to do so? A. tuition reimbursement program B. employee wellness program C. worker's compensation program D. short-term vesting program E. mature education program
a
90. _____ strictly limits the definition of "independent contractors," so that employers cannot avoid legal obligations by classifying workers as self-employed when the organization receives the benefits of a permanent employee. A. The Internal Revenue Service B. The Consolidated Omnibus Budget Reconciliation Act (COBRA) C. The Employee Retirement Income Security Act (ERISA) D. Employee Benefit Research Institute E. The Bureau of Labor Statistics
a
91. Which of the following is an advantage of a qualified plan in retirement benefits? A. immediate tax deductions for the funds employees contribute to the plan B. taxable earnings on the money in the retirement fund C. tax-free withdrawals for highly compensated employees D. exemption of contribution from employees E. a retirement plan that provides benefits exclusively to its owners and top managers
a
92. Which of the following must be true for a pension plan to be deemed as a qualified plan? A. It must not discriminate in favor of an organization's highly compensated employees. B. It must not be a cafeteria-style plan. C. It should include elder care and child care. D. It has to be a defined-contribution plan. E. It has to be a defined-benefit plan that requires most of the funding to come from the employer.
a
Rita, who recently moved to a new city, evaluates several insurance options from her new employer. Owing to her recent medical issues, she wants to choose her health care providers, even if seeing them costs more than seeing the providers in a specific insurance network. Which of the following health care plans is Rita most likely to find suitable for her needs?
a preferred provider organization
Summary Plan Description (SPD)
a report that describes a pension plan's funding, eligibility requirements, risks, and other details; Must be given to employees within 90 days after employees enter the plan
A defined-benefit retirement plan guarantees _____.
a specific level of retirement income
Dan enjoys the employee wellness program at his office because there is a certified trainer on site at the fitness center who tailors his exercise program to his needs. What type of employee wellness program does Dan's company provide?
active
Under the Americans with Disabilities Act, which employer is most likely to face legal challenges?
an employer who switches to a risk-based policy after hiring a disabled employee
An employee with a preferred provider organization (PPO) health care plan would pay a smaller share of the cost of health services when using _____ health care provider.
an in-network
Floating holidays
are paid holidays that vary from year to year. The organization may schedule this so that they extend a Tuesday or Thursday holiday into a long weekend.
101. Which of the following is true of employee benefits? A. Employees have a thorough understanding of what benefits they have and what the market value of these benefits is. B. Employees have a hard time understanding the cost and value of their benefits. C. It is up to employees to determine the cost and value of their benefits. D. Employees, for the most part, are just not interested in their benefits. E. Employers have very limited options for communicating information about benefits.
b
52. Jack has to decide between two jobs that provide equal pay. He decides to compare the health care benefits provided by both jobs to arrive at a decision. He wants to choose the job that offers him a flexible spending account over the job that offers him managed care. Which of the following statements best supports Jack's preference? A. With managed care, the insurer makes decisions about health care, which helps avoid unnecessary procedures. B. Money in flexible spending accounts is not taxed, so employees get more take-home pay. C. The money in the flexible spending accounts must meet IRS requirements. D. At the end of each year, money remaining in a flexible spending account reverts to the employer. E. Contributions to a flexible spending account may not exceed $5,000 per year.
b
64. Which of the following is true of a cash balance plan? A. All contributions to the plan come from the employee. B. The money earns interest at a predetermined rate, such as the rate paid on U.S. Treasury bills. C. Older employees with many years of service benefit to a greater degree than do younger workers just starting their careers. D. It penalizes employees for changing jobs. E. Employees cannot predict retirement benefits under cash balance plans.
b
81. Grey Inc. is a start-up located in Orlando. It offers highly beneficial pension plans to its employees. Which of the following categories of employees is the company most likely to attract through its pension benefits? A. women of childbearing age B. disabled workers C. older people D. young people E. unmarried people
c
95. Which of the following is legally required by an organization while offering early-retirement incentives? A. setting an age at which retirement benefits stop growing B. asking female employees to pay more to defined-benefit plans C. ensuring there is no coercion used to force employees to retire D. asking employees to sign compulsory waiver under ERISA E. providing employees no more than 48 hours to make an early retirement decision
c
Which type of plan consists of individual accounts where all contributions come from the employer?
cash balance
Employee Benefits
compensation in forms other than cash
The government raises Social Security payments each year to adjust for inflation in the _____.
consumer price index
Jesse has a health care plan that provides him with coverage that allows him to be involved in making decisions to help lower costs. This plan typically includes insurance with a high deductible, a medical savings account, and ongoing health education. Which type of health care plan is Jesse using?
consumer-driven health plan
74. Which of the following is a function of elder care benefits offered by organizations? A. direct financial assistance B. tax exemptions on medical bills of the dependent elders C. setting up elderly care facilities close to the workplace D. information, referrals, and support E. providing vouchers and discounts to help employees access the existing elderly care facilities
d
86. How do cafeteria-style plans increase costs for employers? A. Employers pay much higher premiums for an HMO than a preferred health care plan. B. Employers are required to pay higher insurance premiums for laid-off workers. C. Contributions to PGBC to fund the retirement plan increases under this plan. D. Employees select the kind of benefits they expect to need the most. E. Employers bear the cost of providing employees with benefits they do not value.
d
domestic partners
defined either by local law or by the companies themselves. Typically, this is an adult nonrelative who lives with the employee in a relationship defined as permanent and financially interdependent.
53. Matt has a health care plan that provides him coverage in such a way that allows him to be involved in making decisions to help lower costs. This plan typically includes insurance with a high deductible, a medical savings account, and ongoing health education. Which type of health care plan is Matt using? A. managed care B. health maintenance organization C. preferred provider organization D. flexible health plan E. consumer-driven health plan
e
59. Which of the following federal laws increased the responsibility of pension plan trustees to protect retirees? A. the Consolidated Omnibus Budget Reconciliation Act (COBRA) B. the Age Discrimination in Employment Act (ADEA) C. the American Disabilities Act (ADA) D. the Fair Labor Standards Act (FLSA) E. the Employee Retirement Income Security Act (ERISA)
e
After retiring, workers are paid Social Security benefits according to their age and _____.
earnings history
True or false: Spousal benefits only apply to a spouse of the opposite sex.
false
Colleen is able to set aside $2,500 tax free each year out of her earnings to pay for eligible medical expenses. This is an example of a _____ account.
flexible spending
Vesting Rights
guarantee that when employees become participants in a pension plan and work a specified number of years, they will receive a pension at retirement age, regardless of whether they remained with the employer
Marshall finds that he meets the eligibility requirements for Social Security. He elects to receive retirement benefits at 62. In this case, which of the following is true?
he will receive benefits at a permanently reduced level
Patient Protection and Affordable Care Act
health care reform law passed in 2010 that includes incentives and penalties for employers providing health insurance as a benefit
If Kenneth wants to benefit from his company health insurance, he is allowed to visit only doctors who are in the company's network of providers. This type of coverage is known as a _____.
health maintenance organization
To be classified as a qualified plan for tax purposes, a pension plan _____.
must be available for lower-level employees, not only the owners and top managers
Retirement plans funded entirely by the employer are referred to as _____.
noncontributory plans
A logical place to begin selecting employee benefits is to establish _____ for the benefits package.
objectives
Grey Inc. is a start-up located in Orlando. It offers highly beneficial pension plans to its employees. Which of the following categories of employees is the company most likely to attract through its pension benefits?
older people
middle level child care benefits
organizations provide vouchers or discounts for employees to use at existing child care facilities.
Defined benefit plan
pension plan that guarantees a specified level of retirement income. Employer sets up a pension fund to invest contributions.
Riley works at Kupton Co., which provides her with a health care plan that contracts with health care professionals to provide services at a reduced fee. Which type of health care plan is Kupton Co. providing to its employees?
preferred provider organization
Workers' Compensation Insurance employer requirement
provide coverage according to state requirements.
cafeteria-style plan disadvantage
they have a higher administrative cost
A _____ pension plan allows pension benefits for key employees, such as highly paid managers, to exceed a government-specified share of total pension benefits.
top-heavy
Isaiah, an HR manager, conducted a survey to learn which benefits employees value the most. He discovers that the survey results will be difficult to apply. What is the most likely reason?
Employees have very different opinions about what they value.
Vince, an HR manager, conducts a survey to learn which benefits employees value the most. However, he finds that the survey results are difficult to apply. What is the most likely reason?
Employees have very different opinions about what they value.
How do cafeteria-style plans increase costs for employers?
Employees select the kind of benefits they expect to need the most.
31. Which of the following is an advantage of providing benefits instead of cash compensation?
Employers can assemble creative benefits packages that give them a competitive advantage.
In the United States, what is the legal requirement for giving employees paid vacation?
Employers decide on paid time off; there is no minimum.
unemployment insurance
a federally mandated program to minimize the hardships of unemployment through payments to unemployed workers, help in finding new jobs, and incentives to stabilize employment
Preferred Provider Organization (PPO)
a health care plan that contracts with health care professionals to provide services at a reduced fee and gives patients financial incentives to use network providers
Contributory retirement plans are funded by the _____.
employer and employee
Unemployment insurance is financed mostly via taxes on _____.
employers
What is an advantage of providing benefits instead of cash compensation?
employers can assemble creative benefits packages to give them a competitive advantage
When a company undergoes the process of selecting employee benefits, it should _____.
establish written benefits objectives
Workers' Compensation Insurance premiums depend on what?
experience rating
Role of Employee Benefits
Benefits contribute to attracting, retaining, and motivating employees. Variety of possible benefits helps employers tailor their compensation to kinds of employees they need. Employees have come to expect that benefits will help them maintain economic security. Benefits impose significant costs.
Employee Retirement Income Security Act (ERISA) of 1974.
Employer must contribute enough for the plan to cover all benefits to be paid out to retirees.
Pregnancy Discrimination Act
When employees experience pregnancy and childbirth, employers must also comply with the _________ _________ _______.
63. Under a 401(k) plan, the _____ is responsible for choosing specific investments. A. employee B. PGBC C. ERISA fiduciary advisor D. financial institution handling the account E. employer
a
Pension Benefit Guaranty Corporation (PBGC)
federal agency that insures retirement benefits and guarantees retirees a basic benefit if the employer experiences financial difficulties
Which U.S. employees do not receive Social Security benefits?
federal workersrailroad workersstate workers
Social Security employer requirement
flat payroll tax on employees and employers
Noah, a human resource manager, learns from employee surveys and conversations that many employees are struggling with the needs of aging parents. He decides to investigate offering elder care benefits. What could these benefits include?
flexible hours and decision support from experts in geriatric care
paid time off
in which the employer pools personal days, sick days, and vacation days for employees to use as the need or desire arises.
Long-Term Disability Insurance
insurance that pays a percentage of a disabled employee's salary after an initial period and potentially for the rest of the employee's life
Shinjiro, the HR vice president at Rockton Co., evaluates responses from an employee survey at the company's annual benefits presentation. He concludes that many employees are confused about their options for health insurance, and they are often unhappy with the policy they choose. What should Shinjiro do to resolve this situation?
introduce software that will guide employees to the insurance option for their needs
What is a function of elder care benefits offered by organizations?
providing information, referrals, and support
James is the founder of a new start-up company. He hires mostly young employees who are fresh out of college. He finds that most of his employees are willing to develop their knowledge and skills and would like to take courses to improve themselves. This additional knowledge would benefit James' company, so he decides to encourage this behavior. Which of the following programs is James most likely to use in order to do so?
tuition reimbursement program
Kevin is the founder of a new start-up company. He hires mostly young employees who are fresh out of college. He finds that most of his employees are willing to develop their knowledge and skills and would like to take courses to improve themselves. This additional knowledge would benefit Kevin's company, so he decides to encourage this behavior. Which program is Kevin most likely to use in order to do so?
tuition reimbursement program
Companies should explain their benefits packages to employees so they will _____.
understand what their benefits are worth
What is a similarity between unemployment insurance benefits and workers' compensation benefits?
Both of the programs' costs depend on the organization's experience ratings.
patient protection care act
Health care reform law passed in 2010 that includes incentives and penalties for employers providing health insurance as a benefit.
The employee pays for this
How is Unemployment insurance funded?
Long-Term Disability Insurance .
Insurance Insurance that pays a percentage of a disabled employee's salary after an initial period and potentially for the rest of the employee's life.
Long-Term Disability Insurance
Insurance that pays a percentage of a disabled employee's salary after an initial period and potentially for rest of employee's life.
Short-Term Disability Insurance
Insurance that pays a percentage of a disabled employee's salary as benefits to employee for six months or less.
Short-Term Disability Insurance
Insurance that pays a percentage of a disabled employee's salary as benefits to the employee for six months or less.
Weg Tech depends heavily on its workforce of software engineers, systems analysts, and coders. Which statement best explains why Weg Tech would offer its employees paid maternity and paternity leave?
It makes the company more attractive to workers who are in high demand.
Which of the following is not typically covered as part of basic medical insurance coverage?
Vision care
Social security, Unemployment insurance, Workers' compensation insurance, Family and medical leave, and health care
What the 4 types of benefits?
Cafeteria-style plan:
a benefits plan that offers employees a set of alternatives from which they can choose the types and amounts of benefits they want.
The Employee Benefits At Forward Point, A Tech Firm, Includes A Breakfast Bar, A Gym, And An On-Site Massage Therapist. In what way are these benefits supporting the company goals?
by helping employees cope with demanding, high stress jobs.
58. Which of the following factors is considered while calculating the retirement benefit levels under a defined benefit retirement plan? A. the state where the person was employed during the retirement year B. number of dependents C. employees' years of service, age, and earnings level D. average earning during the last 20 years of employment E. number of unused leaves at the end of the retirement year
c
67. What are vesting rights? A. the ability of retired employees to retain their seniority if they return to work at their former employer B. government commitment to provide retirement benefits to all U.S. workers C. the designation that retired workers will receive cost-of-living increases as part of their monthly pension checks D. the guarantee that employees in a pension plan will receive a pension at retirement age, regardless of whether they stay with the employer E. the ability of younger workers to move their retirement savings to another account after leaving a specific employer
d
77. Employee benefits at Great Nile, an online retailer, include a basketball team, a gym, and an on-site massage therapist. In what way are these benefits most likely to support the company's business goals? A. by meeting the standards of most U.S. businesses B. by making the workplace more family-friendly C. by protecting the company against charges of employment discrimination D. by complying with legal requirements for benefits E. by helping employees cope with demanding, high-stress jobs
e
What is legally required by an organization while offering early-retirement incentives?
ensuring there is no coercion used to force employees to retire
After his son was born, John took three weeks of unpaid leave from his company. He returned to his regular full-paying job after the three weeks. Which type of family-friendly benefit did John use?
family leave
Family leave benefits
family or parental leave grants employees time off to care for children and other dependents
Justin is a human resource manager at an advertising firm. Justin proposes that the company adopt defined-benefit plans to attract and retain employees. In which situation will this benefit be most valuable to the firm's employees?
if the firm employs experienced, older people
Profit-sharing and employee stock ownership plans
incentive pay may take the form of profit sharing and employee stock ownership plans (ESOPs). These payments may be set up so that the money goes into retirement plans. By defining its contributions in terms of stock or a share of profits, the organization has more flexibility to contribute less dollar value in lean years and more in good years.
In the U.S., the amount of sick leave given to employees is often based on _____.
length of service
In the U.S., the amount of sick leave given to employees is often based on
length of service.
College Savings Plan
lets parents and other family members defer taxes on the earnings of their deposits into the 529 account
A (passive/active) employee wellness program would provide health education and fitness facilities but no formal support to use the program.
passive
Benefits that are classified as _____ plans offer various tax advantages.
qualified
Contributory plan
retirement plan funded by contributions from employer and employee.
noncontributory plan
retirement plan funded entirely by contributions from the employer
The benefits available to domestic partners do not have the same _____ as those received by spouses.
tax advantages
Which action related to benefits can best give employers an advantage in the labor market?
teaching employees about the value of their benefits
Family and Medical Leave employer requirement
up to 12 weeks of unpaid leave for childbirth, adoption, or serious illness
Employees value benefits because they expect that benefits ______.
will help them remain financially secure
State programs that provide benefits to workers who suffer work-related injuries or sickness are called _____ laws.
workers' compensation
no-fault liability
Operate under a principle of ____ _____: Employee does not need to show that the employer was grossly negligent in order to receive compensation. Employer is protected from lawsuits.
Which benefits provided by the employer is required by law in the United States?
Social Security contributions
Park Production offered employees a defined-benefit retirement plan, in which retirees received benefits calculated on the basis of their age, earnings, and years of service. But the company didn't keep up with technology, and its earnings fell. When the stock market dipped, the company could no longer afford to keep paying for its retirement benefits. What protection will the retirees have in this situation?
The Pension Benefit Guarantee Corporation will provide them with a basic benefit.
Social security
The federal Old Age, Survivors, Disability, and Health Insurance (OASDHI) program, which combines old age (retirement) insurance, survivor's insurance, disability insurance, hospital insurance (Medicare Part A), and supplementary medical insurance (Medicare Part B) for the elderly.
An organization employs Roger, a bilateral amputee, to work as a research analyst. When Lauren, the organization's chief advisor, becomes aware of this, she argues that the organization is going to experience legal challenges. According to the Americans with Disabilities Act, which statement will strengthen Lauren's argument?
The organization switched to a risk-based policy after hiring Roger.
Paid leave group insurance retirement plans "family-friendly" benefits Other quality of work-life benefits
What are the 5 optional benefit programs?
68. A _____ pension plan allows pension benefits for key employees, such as highly paid managers, to exceed a government-specified share of total pension benefits. A. top-heavy B. multiemployer C. special draw rights D. deferred E. defined-contribution
a
56. Which of the following is true about disability insurance? A. It benefits the disabled employee only for the first year of disability. B. Payments under short-term plans are less than that of long-term plans. C. It pays about 50% to 70% of the employee's salary in case of disability. D. Most employers offer long-term disability plans. E. It offers coverage when the employee's dependent is disabled.
c
A plan that allows employees to choose what they want from a list of available benefits is called a _____ plan.
cafeteria-style
A retirement plan known as a ___________ balance plan allows the employer to set up an individual account for each employee and the employer then contributes a percentage of the employee's salary. The account also earns interest at a predefined rate.
cash
55. Which of the following is true of short-term disability insurance? A. It pays the full amount of a disabled employee's salary for a minimum period of one year. B. It pays the double the full salary of a disabled employee for a period of two months. C. Only employees who have been with an organization for less than two years are eligible for short-term disability insurance. D. It pays a portion of a disabled employee's salary as benefits for up to six months. E. It is only provided to those individuals who work part time.
d
What is a major drawback to cafeteria-style benefit plans?
higher administration costs
Cash Balance Plan
retirement plan in which the employer sets up an individual account for each employee and contributes a percentage of the employee's salary; the account earns interest at a predefined rate
Which action helps organizations reduce the cost of health care benefits offered to employees?
shifting from traditional health insurance plans to PPOs and CDHPs
In which of the following situations will workers become eligible for unemployment benefits?
when they are actively seeking work
Two management students, Frank and Neil, discuss the pros and cons of employee benefits. Frank states that unemployment insurance is more advantageous to employees than it is to employers, while Neil argues that employers receive more rewards from it. Which of the following weakens Neil's argument?
Federal and state taxes paid by employers fund most of unemployment insurance.
Vesting Rights
Guarantee that when employees become participants in a pension plan and work a specified number of years, they will receive a pension at retirement age, regardless of whether they remained with the employer.
Mercury Group depends heavily on its workforce of software engineers, systems analysts, and coders. Which statement best explains why Mercury Group would offer its employees paid maternity and paternity leave?
It makes the company more attractive to workers who are in high demand
Life Insurance
Employers may provide life insurance to employees or offer the opportunity to buy coverage at low group rates.
FastForward Technology depends heavily on a workforce of software engineers, systems analysts, and coders. Which statement best explains why FastForward would offer its employees paid maternity and paternity leave?
It makes the company more attractive to workers who are in high demand.
Paid Time Off (PTO) Bank
Most flexible approach Employer pools pools personal days, sick days, and vacation days for employees to use as need arises
65. Which of the following organizations benefits when switching from a defined-benefit plan to cash balance plans? A. organizations with many experienced employees B. organizations with a few skilled employees C. organizations with many young employees D. organizations with many retired employees E. organizations with highly skilled, young employees
a
unemployment insurance
a federally mandated program to minimize the hardships of unemploy through payments to unemployed workers, help in finding new jobs, and incentives to stabilize employment
57. During a meeting to discuss ways to cut costs on benefit packages, the vice president of the company, Harold, suggests getting long-term disability insurance for all employees. Alexis, HR manager, disagrees with him stating that short-term disability coverage is more advantageous for the company. Which of the following supports Alexis' statement? A. Short-term disability coverage is offered by few employers, which leads to a competitive advantage. B. Long-term disability coverage does not have any limits on the amount to be paid each month to employees. C. Short-term disability plans limit maximum coverage in a month, which makes them more affordable for the company. D. The nature of work is such that the level of risk involved is high and injuries could be permanent. E. The majority of the workforce is middle-aged and prefers long-term coverage.
c
85. Jim is the CEO of a company that is expanding overseas. He considers introducing a cafeteria-style benefits plan to cater to the company's diverse workforce. However, the HR team brings up the concern of higher expenses involved in this type of benefits. Which of the following is Jim likely to do to lower costs at the initial stage? A. opt for communication methods that do not stress the value of each benefit B. avoid standardized plans available for employers opting for cafeteria-style benefits C. use software packages to design the plan D. discourage employees from choosing lower-cost options E. encourage employees to choose benefits they need the most
c
Benefit plans that permit employees to choose the types and amounts of benefits they want from a set of alternatives are called
cafeteria-style plans.
69. FastForward Technology depends heavily on a workforce of software engineers, systems analysts, and coders. Which statement best explains why FastForward would offer its employees paid maternity and paternity leave? A. Only 13% of workers currently have paid family leave. B. Most industrialized nations provide this type of employee benefit. C. Management doesn't want exhausted workers in the office. D. These benefits are required by the Family and Medical Leave Act. E. It makes the company more attractive to workers who are in high demand.
e
80. Isaiah, an HR manager, conducted a survey to learn which benefits employees value the most. He discovers that the survey results will be difficult to apply. What is the most likely reason? A. Employees expect to receive benefits that are legally required and widely available. B. Software is the only method employees will accept to help them choose their benefits. C. The costs of turnover at Isaiah's company are high. D. The employees only value medical insurance. E. Employees have very different opinions about what they value.
e
Under the Older Workers Benefit Protection Act of 1990, which guideline must employers follow when asking employees to sign early-retirement waivers?
inform employees that they may consult with a lawyer before signing
Contributory Plan
retirement plan funded by contributions from the employer and employee
Defined contribution plan
retirement plan in which the employer sets up an individual account for each employee and specifies the size of the investment into that account. Money purchase plans Profit-sharing and employee stock ownership plans Section 401(k) plans
Some companies provide _______ reimbursement programs to encourage employees to take classes to improve knowledge and skills related to their career.
tuition
John is the owner of the restaurant, The Round. He decides to increase employee motivation by introducing benefit packages. However, Nina, the manager, suggests that employees will be more motivated if John increases their actual wages. Which of the following statements, if true, strengthens Nina's argument?
Benefit packages are more difficult to understand by employees than pay structures.
Role of Employee Benefits
Benefits packages are more complex than pay structures, making them harder for employees to understand and appreciate. The important role of benefits is one reason that benefits are subject to government regulation. Legally required benefits. Tax laws can make benefits favorable.
Phono Inc. has a benefits package that includes paid vacations and sick leave. The human resource manager proposes shifting this time into a bank of paid time off. What would be an advantage of this change?
Employees have more flexibility and privacy for their personal matters.
Stan, the CEO of a company, considers dropping medical insurance from the list of benefits provided to employees. Alisha, the operations director, disagrees with Stan by stating that medical insurance is a high-value benefit. Which of the following supports Alisha's statement?
Employees usually realize that surgery or a major illness can be financially devastating.
Edgar, a production worker, complains to a human resource professional at his company that when he asked his supervisor for a week off to care for his son after surgery, the supervisor replied, "Can't your wife do that instead?" Which statement best summarizes what the HR professional should explain to the supervisor?
Equal employment opportunity requires that access to benefits not be limited by sex.
Mario, a production worker, complains to a human resource professional at his company that when he asked his supervisor for a week off to care for his son after surgery, the supervisor replied, "Can't your wife do that instead?" Which of the following statements best summarizes what the HR professional should explain to the supervisor?
Equal employment opportunity requires that access to benefits not be limited by sex.
fmla family medical leave act
Federal law requiring organizations with 50 or more employees to provide up to 12 weeks of unpaid leave after childbirth or adoption; to care for a seriously ill family member or for an employee's own serious illness; or to take care of urgent needs that arise when a spouse, child, or parent in the National Guard or Reserve is called to active duty.
Employee Retirement Income Security Act (ERISA)
Federal law that increased the responsibility of pension plan trustees to protect retirees, established certain rights related to vesting and portability, and created the Pension Benefit Guarantee Corporation
1. Disability income 2. Medical care 3. Death benefits 4. Rehabilitative benefits
Four major categories of benefits: (Workers' compensation)
Nick, the HR manager at a start-up company, helped the founder plan a benefits package that includes paid vacations, holidays, and sick leave. Now an employee approaches Nick to say she has been called up for jury duty and needs to be away next week. What should Nick do?
He should establish, and then apply, policies for other situations requiring time off.
Yang, the HR manager at a start-up company, helped the founder plan a benefits package that includes paid vacations, holidays, and sick leave. Now an employee approaches Yang to say she has been called up for jury duty and needs to be away next week. What should Yang do?
He should establish, and then apply, policies for other situations requiring time off.
Jerome is the CEO of a magazine publishing company. He wants to provide benefits for his employees but would still like to control his company's costs. Ashley, the head of the HR department, suggests implementing a cafeteria-style plan. What would be the most likely benefit of Jerome doing so?
He will avoid the cost of providing employees with benefits they don't value.
Ravi is the CEO of a magazine publishing company. He wants to provide benefits for his employees, but would still like to control his company's costs. Jess, the head of the HR department, suggests implementing a cafeteria-style plan. What would be the most likely benefit of Ravi doing so?
He will avoid the cost of providing employees with benefits they don't value.
Why should employers tell their workers the details about what is included in their benefits packages?
Health insurance and retirement plans are complex and difficult for most employees to fully understand. Highly desirable employees will be more apt to work for a company that offers valuable benefits that are easy to understand. Employees often fail to understand the value of their benefits.
Employers and employees share Social Security cost through a payroll tax. The percentage is set by law.
How is social security funded?
Tina, an HR manager, and her staff devote long hours to planning and running a "benefits fair," where employees can view displays and ask questions about the various parts of the company's benefits package. The following week, the marketing manager asks if the effort was worthwhile. Tina says it was. What is the most likely reason for Tina's opinion?
It increased employees' commitment and satisfaction, so they contribute more to the company.
What must be true for a pension plan to be deemed a qualified plan?
It must not discriminate in favor of an organization's highly compensated employees.
What is true of short-term disability insurance?
It pays a portion of a disabled employee's salary as benefits for up to six months.
What is true about disability insurance?
It pays about 50% to 70% of the employee's salary in case of disability.
Frankie is deciding between two jobs that provide equal pay. He compares the health care benefits provided by both jobs to help him make a decision. One job offers a flexible spending account, while the other job offers him managed care. Which statement will help Frankie make a decision?
Money in flexible spending accounts is not taxed, so employees get more take-home pay.
Jack has to decide between two jobs that provide equal pay. He decides to compare the health care benefits provided by both jobs to arrive at a decision. He wants to choose the job that offers him a flexible spending account over the job that offers him managed care. Which of the following statements best supports Jack's preference?
Money in flexible spending accounts is not taxed, so employees get more take-home pay.
What federal legislation includes incentives and penalties to encourage organizations to provide health insurance for their employees?
Patient Protection and Affordable Care Act
Kelly, a new employee, learns her company provides a group insurance plan that she can enroll in. Her friend, Michael, suggests that Kelly would be able to save money if she chooses to purchase an individual insurance plan over the company's group insurance plan. Which of the following weakens Michael's argument?
Rates for group insurance are typically lower than those of individual policies.
Rose, a new employee, learns her company provides a group insurance plan that she can enroll in. Her friend, Gary, suggests that Rose would save money if she chooses to purchase an individual insurance plan over the company's group insurance plan. Which statement weakens Gary's argument?
Rates for group insurance are typically lower than those of individual policies.
During a meeting to discuss ways to cut costs on benefits packages, the vice president of the company, Ian, suggests getting long-term disability insurance for all employees. Patty, the HR manager, disagrees with him, stating that short-term disability coverage is more advantageous for the company. Which of the following supports Patty's statement?
Short-term disability plans limit maximum coverage in a month, which makes them more affordable for the company.
experience rating
Size of unemployment tax imposed on each employer depends on the employer's ___________ ___________: Number of employees a company has laid off in the past and cost of providing them with unemployment benefits. Careful HR planning can minimize layoffs and keep their experience rating favorable.
Steve, the vice president of Ocher Inc., plans to introduce a retirement plan for all employees. George, the operations director, disagrees because the proposed plan would increase the company's costs. Which of the following, if true, strengthens Steve's argument?
Some benefits have become so common that today's employees expect them.
Pickwick Production offered employees a defined-benefit retirement plan, in which retirees received benefits calculated on the basis of their age, earnings, and years of service. But the company didn't keep up with technology, and its earnings fell. When the stock market dipped, the company could no longer afford to keep paying for its retirement benefits. What protection will the retirees have in this situation?
The Pension Benefit Guarantee Corporation will provide them with a basic benefit.
Money purchase plan
The employer specifies a level of annual contributions (for example, 10% of salary). The contributions are invested, and when the employee retires, he or she is entitled to receive the amount of the contributions plus the investment earnings. ("Money purchase" refers to the fact that when employees retire, they often buy an annuity with the money, rather than taking it as a lump sum.)
70. Jacob is a new father. His company helps Jacob by collecting information about the cost and quality of available child care. Which of the following is true of the child care provided by Jacob's company? A. The child care provided by the company is at the lowest level of involvement. B. The child care provided by the company is at the highest level of involvement. C. According to the Family and Medical Leave Act, the company has not provided Jacob with adequate child care. D. According to the Patient Protection and Affordable Care Act, the company has exceeded the level of involvement that is permissible. E. The child care provided by the company is a form of a dependent care assistance plan.
a
72. Helen is a marketing manager at a local equipment manufacturer. She and her husband know that saving for college for their 4-year-old twin boys is a challenge. Her employer recently implemented a college tuition plan that lets parents and other family members defer taxes on their contributions to the plan. What is the type of plan recently implemented? A. 529 savings plan B. 401k savings plan C. 207 college tuition plan D. U.S. saving bonds plan E. TD Ameritrade college tuition plan
a
75. Most organizations offer _____ to encourage learning and attract the kinds of employees who wish to develop their knowledge and skills. A. tuition reimbursement programs B. paid vacations C. pension plans D. quarterly promotions E. medical insurance plans
a
89. Which of the following strategies can be legally adopted by organizations looking to restructure the workforce to minimize the expense of benefits? A. using more independent contractors rather than hiring additional employees B. limiting the coverage on life insurance based upon an employee's age C. using more full-time rather than part-time employees D. recruiting new employees instead of demanding overtime from existing employees E. substituting HMO and PPO plans with traditional health insurance plans
a
93. In a meeting to discuss pension plans, management decides to offer retirement plans exclusively to the organization's owners and top managers. Steven, one of the top managers, disagrees with this decision because he believes the company can benefit more by providing pensions to a broad range of employees. Which of the following strengthens Steven's belief? A. Nondiscrimination rules provide tax benefits to plans that do not favor the organization's highly compensated employees. B. The ADEA provides more favorable tax treatment of benefits when they are offered to a broad range of employees. C. A top-heavy plan requires faster vesting for non-key employees. D. Extending pension plans to employees at all levels will triple the costs. E. Pension plans are determined exclusively by state and federal laws.
a
96. Under the Older Workers Benefit Protection Act of 1990, which of the following guidelines must employers follow when asking employees to sign early-retirement waivers? A. Inform employees that they may consult with a lawyer before signing. B. Allow employees no more than 48 hours before signing the retirement agreement. C. Make Age Discrimination in Employment Act (ADEA) waivers compulsory. D. Provide lesser benefits than would otherwise be available upon retirement. E. Provide employees with an annual bonus and health insurance after the retirement.
a
97. Under the Americans with Disabilities Act, which of the following employers is most likely to face legal challenges? A. an employer who switches to a risk-based policy after hiring a disabled employee B. an employer who sets guidelines for using waivers C. an employer who discriminates against workers over age 40 in providing pay or benefits D. an employer who has risk-based insurance and then hires an employee with a disability E. an employer who does not have risk-based insurance
a
51. Nina works at Gia Inc., which provides her with a health care plan that contracts with health care professionals to provide services at a reduced fee. Which type of health care plan is Gia providing to its employees? A. flexible spending account B. preferred provider organization C. health maintenance organization D. consumer-driven health plan E. managed care plan
b
61. Which of the following is an example of a defined-contribution pension plan? A. consumer-driven pension plan B. money purchase plan C. cost-sharing plan D. flexible spending account plan E. unfunded PBGC plan
b
71. Which of the following is true of child care? A. At the highest level of involvement, organizations provide vouchers or discounts for employees to use at existing child care facilities. B. Companies that provide child care facilities face liability concerns. C. Provision of child care is mandatory under the Family and Medical Leave Act. D. Child care should be limited to provision of leaves to employees. E. Child care must include death benefits for it to be considered as a qualified plan.
b
83. Which of the following is an advantage of cafeteria-style plans? A. Employees do not have to select their individual plans. B. Employees can get a better understanding of the value of benefits provided. C. These types of plans have lower administrative costs. D. Since employees will select the benefits that they need the most, it reduces the overall costs. E. When companies provide cafeteria-style plans, they do not have to pay unemployment insurance tax.
b
84. Ravi is the CEO of a magazine publishing company. He wants to provide benefits for his employees, but would still like to control his company's costs. Jess, the head of the HR department, suggests implementing a cafeteria-style plan. What would be the most likely benefit of Ravi doing so? A. He will save time by using software packages to offer benefits packages. B. He will avoid the cost of providing employees with benefits they don't value. C. Having a non-standardized plan will make Ravi's company seem cutting-edge. D. Employees of the company, including Ravi, will be given more vacation days. E. Costs will be easy to estimate since all benefits options will be taken into consideration.
b
98. An organization employs Rick, a bilateral amputee, to work as a research analyst. When Sarah, the organization's chief advisor, becomes aware of this, she argues that the organization is going to experience legal challenges. According to the Americans with Disabilities Act, which of the following will strengthen Sarah's argument? A. The organization has a risk-based insurance in place before recruiting Rick. B. The organization plans to stop Rick's benefits when he reaches the age of 50. C. The organization switched to a risk-based policy after hiring Rick. D. The organization gave Rick access to the same health insurance that is provided to the other employees. E. The organization does not have a risk-based insurance.
c
104. Laura, HR manager at a tech company, is responsible for administering the company benefits program. The employee benefits package will undergo several significant changes at the start of the new year. Which of the following would be an effective strategy to share the changes with employees? A. issue a revised employee handbook to new employees B. mention the changes to a few employees and hope they spread the word C. say little about the changes D. ask the CEO to say a few words about the changes at the company holiday party E. set up Q&A sessions with each department to discuss the changes
e
105. Gabriela, an HR manager, and her staff devote long hours to planning and running a "benefits fair," where employees can view displays and ask questions about the various parts of the company's benefits package. The following week, the marketing manager asks if the effort was worthwhile. Gabriela says it was. What is the most likely reason for Gabriela's opinion? A. It lowered the cost of communicating with employees, because now the company doesn't need to use printed media. B. It lowered the cost of providing benefits, because employees know what to sign up for. C. It increased employees' commitment to saving for retirement, so they won't need Social Security. D. It increased employees' happiness and job commitment, so they are more fun to be around. E. It increased employees' commitment and satisfaction, so they contribute more to the company.
e
60. Old Thyme Manufacturing offered employees a defined-benefit retirement plan, in which retirees received benefits calculated on the basis of their age, earnings, and years of service. But the company didn't keep up with technology, and its earnings fell. When the stock market dipped, the company found that it couldn't afford to keep up with paying for its retirement benefits. What protection will the retirees have in this situation? A. Old Thyme must give the employees the option to sell their stock in the company. B. The employees will receive payouts from their 401(k) plans. C. The employees will receive a share of profits as part of the company's ESOP. D. Because the plan was underfunded, the retirees will no longer receive benefits. E. The Pension Benefit Guarantee Corporation will provide them with a basic benefit.
e
62. Ian is the human resource manager of a one-year-old technology company. The founder wants him to set up a retirement plan. Ian thinks the best approach during the company's early years would be a defined-contribution plan funded with profit-sharing dollars. Which statement best supports Ian's idea? A. The plan makes employees part-owners of the company. B. The Pension Benefit Guarantee Corporation will guarantee a basic benefit. C. Employees can buy an annuity with the contributions when they retire. D. The amount employees contribute is not taxed when they contribute it. E. Contributing a share of profits gives the company more flexibility as it establishes itself.
e
73. Noah, a human resource manager, learns from employee surveys and conversations that many employees are struggling with the needs of aging parents. He decides to investigate offering elder care benefits. What could these benefits include? A. a 529 savings plan to save money for long-term care facilities B. providing professional caregivers and nursing care C. vacation days and sick leave D. paid time off and part-time jobs for the parents E. flexible hours and decision support from experts in geriatric care
e
79. Stan, the CEO of a company, considers dropping medical insurance from the list of benefits provided to employees. Alisha, the operations director, disagrees with Stan by stating that medical insurance is a high-value benefit. Which of the following supports Alisha's statement? A. Companies that do not provide medical insurance cannot have their retirement plans considered as qualified plans. B. Most employees do not appreciate what health insurance costs the employer. C. Medical insurance plans do not cover mental illness. D. A health insurance rate is higher than a general insurance rate. E. Employees usually realize that surgery or a major illness can be financially devastating.
e
87. Bilge Makers Unlimited has a goal to lower the cost of employee benefits. Its human resource department compares the costs of its benefits with averages published by the Bureau of Labor Statistics, the U.S. Chamber of Commerce, and other sources. The investigation shows that its cost for workers' compensation insurance is high relative to other companies. Which of the following actions could best help Bilge Makers accomplish its goal? A. accept the high cost and look for other areas in which to reduce spending B. replace the workers' compensation insurance with disability insurance C. shop for a better deal on workers' compensation insurance D. cancel the workers' compensation insurance E. improve safety to lower the company's experience rating
e
88. Which of the following actions help organizations reduce the cost of health care benefits offered to employees? A. increasing the amount employers pay for deductibles and coinsurance B. selecting traditional health insurance over HMOs and PPOs as a preferred option C. expanding the coverage for different types of claims D. paying some or all of the difference in cost between an HMO or PPO plan E. shifting from traditional health insurance plans to PPOs and CDHPs
e
94. Mario, a production worker, complains to a human resource professional at his company that when he asked his supervisor for a week off to care for his son after surgery, the supervisor replied, "Can't your wife do that instead?" Which of the following statements best summarizes what the HR professional should explain to the supervisor? A. Benefits apply whether a spouse is of the same or the opposite sex. B. Females may not be required to contribute more than men to defined-benefit plans. C. Fatherhood is a protected category in the antidiscrimination laws. D. Mario has not yet used all of his sick leave. E. Equal employment opportunity requires that access to benefits not be limited by sex.
e
99. Which of the following is a requirement set for employers under the Financial Accounting Standards Board standards? A. Employers must fund benefits on a pay-as-you-go basis. B. Benefits must not appear as future cost obligations. C. Employers should encourage employees to participate in management functions. D. Financial statements should be made in such a way that outsiders cannot understand them. E. Employers must set aside the funds they expect to need for benefits to be paid after retirement.
e
When employees receive compensation that is not cash, the compensation is referred to as _____.
employee benefits
Which of the following are types of defined-contribution plans?
employee stock ownership plan money purchase plan profit-sharing plan
Beckwith Corporation has a benefits package that includes paid vacations and sick leave. The human resource manager proposes shifting this time into a bank of paid time off. What would be an advantage of this change?
employees have more flexibility and privacy for their personal matters
Research asking employees about their benefits has shown that _____.
employees underestimate the cost and value of benefits
If the money in a flexible spending account is not spent within the year, the money goes to the _____.
employer
Bilge Makers Unlimited has a goal to lower the cost of employee benefits. Its human resource department compares the costs of its benefits with averages published by the Bureau of Labor Statistics, the U.S. Chamber of Commerce, and other sources. The investigation shows that its cost for workers' compensation insurance is high relative to other companies. Which of the following actions could best help Bilge Makers accomplish its goal?
improve safety to lower the company's experience rating
QFV International has a goal to lower the cost of employee benefits. Its human resource department compares the costs of its benefits with averages published by the Bureau of Labor Statistics, the U.S. Chamber of Commerce, and other sources. The investigation shows that its cost for workers' compensation insurance is high relative to other companies. Which action could best help QFV International accomplish its goal?
improve safety to lower the company's experience rating
Courtney's employer provides her with an insurance plan that requires her to obtain approval before being admitted to the hospital for surgical procedures. Which variation of health coverage does this illustrate?
managed care
Sarah's employer provides her with an insurance plan that requires her to obtain approval before being admitted to the hospital for surgical procedures. Which variation of health coverage does this illustrate?
managed care
lowest level child care benefits
organization supplies and helps employees collect information about the cost and quality of available child care.
Which of the following is not a workers' compensation benefit?
paid vacation days
Contrary to Western European countries, the United States has no legal requirements regarding employee _______.
paid vacation time
unemployment insurance employer requirement
payroll tax on employees that depends on state requirements and experience rating
An employer sets up a _____ fund to invest the contributions to a defined-benefit plan.
pension
defined benefit plan
pension plan that guarantees a specified level of retirement income
The amount of money a retiree will receive from a defined-contribution plan depends on the _____.
performance of the investment
Kelsey, the engineering manager at Tek Solutions, takes an eight-week unpaid leave to go on a tour to promote a book she wrote. She does so in accordance with Tek Solutions' policy for leaves without pay. In what sense could this unpaid leave be an employee benefit for Kelsey?
she retains her seniority and benefits during the leave
worker's compensation
state programs that provide benefits to workers who suffer work-related injuries or illness, or to thier survivors
Workers Compensation
state programs that provide benefits to workers who suffer work-related injuries or illnesses, or to their survivors
Which of the following actions related to benefits can best give employers an advantage in the labor market?
teaching employees about the value of their benefits
Which federal law increased the responsibility of pension plan trustees to protect retirees?
the Employee Retirement Income Security Act (ERISA)
Highest level child care benefits
the employer provides child care at or near the work site.
social security
the federal old age, survivors, disabilitiy, and health insurrance (OASDHI) program, which combines old age (retirement) insurance, survivor's insurance, disability insurance, hospital insurance ( medicare part a), and supplementary medical insurance (medicare part b) for the elderly
Steve is a human resource manager at an advertising firm. Steve proposes that the company adopt defined-benefit plans to attract and retain its employees. In which situation will this benefit be most valuable to the firm's employees?
the firm employs experienced, older people
managed care
the insurer plays a role in decisions about health care, aimed at avoiding unnecessary procedures
Experience Rating
the number of employees a company has laid off in the past and the cost of providing them with unemployment benefits
experience rating
the number of employees a company has laid off in the past and the cost of proving them with unemployment benefits
Morgan is the founder of a new start-up company. She hires mostly young employees who are recent college graduates. She finds that most of her employees want to further their knowledge and skills and want to take coursework to accomplish this. Furthering the employees' knowledge would benefit Morgan's company, so she decides to encourage this behavior. Which program is Morgan most likely to use in order to do so?
tuition reimbursement program
Jim is the CEO of a company that is expanding overseas. He considers introducing a cafeteria-style benefits plan to cater to the company's diverse workforce. However, the HR team brings up the concern of higher expenses involved in this type of benefits. Which of the following is Jim likely to do to lower costs at the initial stage?
use software packages to design the plan
Which of the following are major categories of paid leave?
vacations holidays sick leave
As a way to curtail the costs of unemployment insurance, some states let companies reduce wages and hours, and employees are paid partial unemployment benefits. This reduces the number of employees who must be laid off. The program is called _____.
work sharing
Under the Patient Protection and Affordable Care Act, organizations that have at least 50 full-time employees (or an equivalent number of full- and part-time employees) must offer health care coverage or pay a penalty. In 2018 the penalty amounted to ______.
$2,320 annually for every full-time employee after the first 30
Which of the following is characteristic of benefits required by the Social Security Act?
Workers are compensated according to their past earnings and retirement age.
Flexible Spending Account
employee-controlled pretax earnings set aside to pay for certain eligible expenses, such as health care expenses, during the same year
Term life insurance
- if the employee dies during the term of the policy, the employee's beneficiaries receive a death benefit payment. Usually twice the employee's yearly pay. Additional benefits may include accidental death and dismemberment.
Four conditions required to receive benefits
1. They meet requirements demonstrating they had been employed (often 52 weeks or four quarters of work at a minimum level of pay). 2. They are available for work. 3. They are actively seeking work. This requirement includes registering at the local unemployment office. 4. They were not discharged for cause (such as willful misconduct), did not quit voluntarily, and are not out of work because of a labor dispute (such as a union member on strike).
According to federal law, employees are entitled to _____ weeks of unpaid family leave.
12
Linda, who is pregnant, works for an organization with more than 100 employees. She lives 20 miles away from work. By federal law, she is entitled to _____ of unpaid leave after her child is born.
12 weeks
Under the Family and Medical Leave Act (FMLA), an employee may take up to _____ weeks off work without pay if a family member is injured during active military duty,
26
On average, out of every dollar spent by a company on employee compensation, more than _____ cents goes to employee benefits.
30
Of every dollar spent on employee compensation, about how much pays for benefits?
30 cents
Helen is a marketing manager at a local equipment manufacturer. She and her husband know that saving for college for their 4-year-old twin boys is a challenge. Her employer recently implemented a college tuition plan that lets parents and other family members defer taxes on their contributions to the plan. What is the type of plan recently implemented?
529 savings plan
Jerry loses his job during a layoff at his company. He's worried about not having access to his health insurance benefits anymore. However, his company is required to offer him the same health insurance coverage for up to 36 months following the layoff. Which federal law applies in this scenario?
Consolidated Omnibus Budget Reconciliation Act
Section 401(k) plan
employees contribute a percentage of their earnings, and employers may match contributions.
Employee Wellness Program (EWP)
A set of communications, activities, and facilities designed to change health-related behaviors in ways that reduce health risks.
Family and Medical Leave Act (FMLA) of 1993
Requires organizations with 50 or more employees to provide up to 12 weeks of unpaid leave: After childbirth or adoption To care for a seriously ill family member For an employee's own serious illness
Contributory Plan
Retirement plan funded by contributions from the employer and employee.
Noncontributory Plan
Retirement plan funded entirely by contributions from the employer.
Cafeteria-Style Plan
A benefits plan that offers employees a set of alternatives from which they can choose the types and amounts of benefits they want.
Preferred Provider Organization (PPO)
A health care plan that contracts with health care professionals to provide services at a reduced fee and gives patients financial incentives to use network providers. Flexible Spending
Health Maintenance Organization (HMO)
A health care plan that requires patients to receive their medical care from the HMO's health care professionals, who are often paid a flat salary, and provides all services on a prepaid basis
Health Maintenance Organization (HMO)
A health care plan that requires patients to receive their medical care from the this health care professionals, who are often paid a flat salary, and provides all services on a prepaid basis.
9 out of 10
About ____ out of ____ U.S. workers are covered by state workers' compensation laws; amount of benefits income varies among states.
What is true of child care benefits?
Companies that provide child care facilities face liability concerns.
Optional Benefits Programs: Other Quality of Work-Life Benefits
Subsidized cafeterias On-site health care services Moving and relocation expenses Employee discounts on products Employee buying service
defined contribution plan
retirement plan in which the employer sets up an individual account for each employee and specifies the size of the investment into that account
102. Which of the following actions related to benefits can best give employers an advantage in the labor market? A. teaching employees about the value of their benefits B. limiting benefits to a few simple options C. explaining complex benefits with sophisticated language D. keeping messages about benefits basic and uncreative E. simplifying messages about benefits by delivering them through one medium
a
54. Ron, the manager of a shipping company, introduces a set of communications, activities, and facilities designed to change health-related behaviors in ways that reduce health risks and subsequent medical costs. The program aims at specific health risks, such as high blood pressure, high cholesterol levels, smoking, and obesity. Based on these offerings, Ron has introduced a(n) _____. A. employee wellness program B. health maintenance organization plan C. preferred provider program D. managed care program E. consumer-driven health program
a
Employee Wellness Program (EWP)
a set of communications, activities, and facilities designed to change health-related behaviors in ways that reduce health risks
Paid vacation time and health insurance are both types of employee _____.
benefits
paid personal days
days off that employees may schedule according to their personal needs, with the supervisor's approval
True or false: Most tuition reimbursement programs will cover tuition for any type of college- or graduate-level course.
false
