Question 1

While the number of mandatory days of paid vacation in Western Europe is about 30 days,the U.S.companies typically offer:

Accepted Answer

A)   five paid holidays each year.
B)   10 paid holidays each year.
C)   20 paid holidays each year.
D)   more than 40 paid holidays each year.
E)   more than two weeks of paid holidays each year.F) C) and D)
G) B) and E)

Question 2

For an organization with _____,switching from a defined-benefit plan can produce great savings in pension benefits.

Accepted Answer

A)   many experienced employees
B)   a few skilled employees
C)   many young employees
D)   many retired employees
E)   highly skilled employeesF) A) and D)
G) C) and E)

Question 3

Which of the following is true of 529 savings plans?

Accepted Answer

A)   They are mandated by the federal government.
B)   They are designed to support the primary education expenses of workers' children.
C)   They provide education to employees' children at a subsidized rate.
D)   They provide information about the education standards in different colleges to employees to help them enroll their children in better institutions.
E)   They allow parents and other family members to defer taxes on the earnings of their deposits.F) A) and B)
G) D) and E)

Question 4

Which one of the following is true of defined-contribution plans?

Accepted Answer

A)   They shift the investment risk to the employer.
B)   They present greater administrative challenges to employers.
C)   They require annual premium payments to the PBGC.
D)   They guarantee a basic benefit to the employee if the employer experiences financial difficulties.
E)   They are easier to administer as compared to other plans.F) B) and C)
G) B) and D)

Question 5

Employees are most likely to benefit from a flexible spending account if they have predictable health care expenses,such as insurance premiums.

Accepted Answer

A) True 
 B)False

Question 6

Within a 401(k) plan,who has the responsibility for investing?

Accepted Answer

A)   The employee
B)   The PGBC
C)   The ERISA Fiduciary Advisor
D)   The financial institution handling the account
E)   The employerF) B) and E)
G) D) and E)

Question 7

The Family and Medical Leave Act of 1993 requires organizations with 50 or more employees within a 75-mile radius to provide as much as 12 weeks of unpaid leave to qualifying employees.

Accepted Answer

A) True 
 B)False

Question 8

Under FASB standards,employers fund retirement benefits on a pay-as-you-go basis.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following was created by the Employee Retirement Income Security Act (ERISA) of 1974?

Accepted Answer

A)   Employee Benefit Security Administration
B)   Federal Trade Commission
C)   Merit Systems Protection Board
D)   Federal Retirement Thrift Investment Board
E)   Pension Benefit Guarantee CorporationF) A) and B)
G) A) and C)

Question 10

Which legal benefit requires employers to pay payroll tax depending on state requirements?

Accepted Answer

A)   Long-term disability insurance
B)   Unemployment insurance
C)   Workers' compensation
D)   Unpaid family medical leave
E)   Health care benefitsF) All of the above
G) C) and E)

Question 11

To take unpaid family leave under the Family and Medical Leave Act,employees must meet which of the following criteria?

Accepted Answer

A)   Should be working for an employer with 50 or more employees within a 75-mile radius
B)   Should have worked at least 15 hours per week
C)   Should have worked for the employer for more than 5 years
D)   Should belong to the top 10 percent of highest paid executives
E)   Should be working for an employer with at least 100 employeesF) A) and B)
G) A) and C)

Question 12

Why is it essential for organizations to communicate the nature and value of benefits to their employees?

Accepted Answer

Organizations must communicate benefits ...

Question 13

Which of the following is true of the Employee Retirement Income Security Act of 1974?

Accepted Answer

A)   The act established certain rights related to vesting.
B)   The act required employers to offer supplemental retirement plans.
C)   The act barred portability of retirement savings.
D)   The act reduced the responsibility of pension plan trustees.
E)   The act guaranteed retirees a pension equivalent to their last drawn salary.F) B) and D)
G) D) and E)

Question 14

Tuition reimbursement programs offered by certain organizations cover the tuition and other education related expenses of their workers' children.

Accepted Answer

A) True 
 B)False

Question 15

What are the different types of family-friendly benefits?

Accepted Answer

As employers have recognized the signifi...

Question 16

For the average employee,the most common type of insurance offered as benefits is the pension program.

Accepted Answer

A) True 
 B)False

Question 17

According to ERISA,employees whose contributions are vested have met the requirements to receive a pension at retirement age.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following sources do most retirees (65 and older) receive most of their income?

Accepted Answer

A)   Social Security
B)   Private pensions
C)   Earnings from personal assets
D)   Disability insurance
E)   Private investmentsF) A) and E)
G) A) and D)

Question 19

What are the objectives of the unemployment insurance program established by the Social Security Act of 1935.How is this program funded?

Accepted Answer

The unemployment insurance program was e...

Question 20

Which of the following is true of the Employee Retirement Income Security Act (ERISA) of 1974?

Accepted Answer

A)   It was introduced as a bill by the Pension Benefit Guarantee Corporation.
B)   It established vesting rights related to pensions.
C)   It prohibits the movement of retirement savings when changing employers.
D)   It makes it mandatory to operate a day-care center at or near the workplace.
E)   It establishes the setting up flexible spending accounts for dependent care.F) B) and E)
G) C) and D)

Exam 13: Providing Employee Benefits

While the number of mandatory days of paid vacation in Western Europe is about 30 days,the U.S.companies typically offer:

Correct AnswerverifiedShow Answer

Which legal benefit requires employers to pay payroll tax depending on state requirements?

Correct AnswerverifiedShow Answer

What are the objectives of the unemployment insurance program established by the Social Security Act of 1935.How is this program funded?

Correct AnswerverifiedThe unemployment insurance program was e...View AnswerShow Answer

For the average employee,the most common type of insurance offered as benefits is the pension program.

Correct AnswerverifiedShow Answer

Which one of the following is true of defined-contribution plans?

Correct AnswerverifiedShow Answer

Tuition reimbursement programs offered by certain organizations cover the tuition and other education related expenses of their workers' children.

Correct AnswerverifiedShow Answer

According to ERISA,employees whose contributions are vested have met the requirements to receive a pension at retirement age.

Correct AnswerverifiedShow Answer

Which of the following is true of the Employee Retirement Income Security Act (ERISA) of 1974?

Correct AnswerverifiedShow Answer

Employees are most likely to benefit from a flexible spending account if they have predictable health care expenses,such as insurance premiums.

Correct AnswerverifiedShow Answer

The Family and Medical Leave Act of 1993 requires organizations with 50 or more employees within a 75-mile radius to provide as much as 12 weeks of unpaid leave to qualifying employees.

Correct AnswerverifiedShow Answer

Which of the following sources do most retirees (65 and older) receive most of their income?

Correct AnswerverifiedShow Answer

Which of the following is true of the Employee Retirement Income Security Act of 1974?

Correct AnswerverifiedShow Answer

Why is it essential for organizations to communicate the nature and value of benefits to their employees?

Correct AnswerverifiedOrganizations must communicate benefits ...View AnswerShow Answer

For an organization with _____,switching from a defined-benefit plan can produce great savings in pension benefits.

Correct AnswerverifiedShow Answer

To take unpaid family leave under the Family and Medical Leave Act,employees must meet which of the following criteria?

Correct AnswerverifiedShow Answer

Under FASB standards,employers fund retirement benefits on a pay-as-you-go basis.

Correct AnswerverifiedShow Answer

Within a 401(k) plan,who has the responsibility for investing?

Correct AnswerverifiedShow Answer

Which of the following is true of 529 savings plans?

Correct AnswerverifiedShow Answer

Which of the following was created by the Employee Retirement Income Security Act (ERISA) of 1974?

Correct AnswerverifiedShow Answer

What are the different types of family-friendly benefits?

Correct AnswerverifiedAs employers have recognized the signifi...View AnswerShow Answer

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The unemployment insurance program was e...
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Organizations must communicate benefits ...
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As employers have recognized the signifi...
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