HRMN 5470 PUGH FINAL EXAM QUESTIONS WELL ANSWERED LATEST UPDATE 2026

HRMN 5470 PUGH FINAL EXAM QUESTIONS WELL ANSWERED LATEST UPDATE 2026 Protection programs - Answers provide family benefits, promote health, and guard against income loss caused by such catastrophic factors as unemployment, disability, or serious illness Paid time-off - Answers provides employees time off with pay for such events as vacation Services - Answers provide enhancements such as tuition reimbursement and day care assistance to employees and their families Disability insurance - Answers includes both short- and long-term disability care Life insurance - Answers protects employees' families by paying a specified amount to an employee's beneficiaries upon the employee's death Short-term Disability - Answers - Less than 6 months - 60% to 70% of pretax income Short-term disability covers conditions such as: - Answers - Recovery from injuries - Recovery from surgery - Treatment of an illness requiring any hospitalization - Pregnancy Long-term Disability - Answers - 6 months to life - 50% to 70% of pretax pay Term life insurance - Answers provides protection to employees' beneficiaries only during a limited period based on a specified number of years Whole life insurance - Answers does not terminate until payment is made to beneficiaries Universal life insurance - Answers combines features of term life and whole life Defined Benefit Plans - Answers a guaranteed retirement package where the amount you receive is determined by a formula Defined Contribution Plans - Answers Employees, employers, or both make annual contributions to separate accounts established for each participating employee, based on a formula contained in the plan document Contribution Sources - Answers - Employee contributions - Employer contributions (company match) Employee contributions - Answers expressed as a percentage of wage or salary Employer contributions (company match) - Answers expressed as a percentage of an employee's contributions up to a specified limit Section 401(k) plans - Answers pre-tax contributions and taxable withdrawals Roth 401(k) plans - Answers post-tax contributions and non-taxable withdrawals Integrated Paid Time Off Policies - Answers - Provides individuals the freedom to schedule time off without justifying the reason Combine holiday, vacation, sick leave, and personal leave policies into a single paid time off policy Employee Assistance Programs (EAPs) - Answers Provided for: - Alcohol or drug abuse - Domestic violence - Emotional impact of AIDS and other diseases - Clinical depression - Eating disorders Outplacement Assistance Programs - Answers help employees who are being laid off find new jobs Four Categories of Legally Required Benefits - Answers -social security programs -workers compensation -family and medical leave -health insurance Social Security Programs - Answers - Unemployment Insurance - Old Age, Survivor, and Disability Insurance (OASDI) - Medicare Unemployment Insurance Eligibility - Answers - Able and available for work - Actively seeking work - Has not refused suitable work - Must be employed for the last four or five quarters prior to becoming unemployed, known as the base period. Medicare - Answers Health insurance coverage for citizens age 65 and older Workers' Compensation - Answers Workers' compensation programs, run by states individually,are designed to cover expenses incurred in employees' work-related accidents Family and Medical Leave - Answers 12 weeks of unpaid leave for: - Birth, adoption - foster care - Serious family medical problems - Worker's serious medical problems Patient Protection and Affordable Care Act of 2010 (PPACA) - Answers PPACA provides the basis for health care reform in the U.S.Also known as Obamacare. Fee-for-Service Plans - Answers Provide protection against health care expenses in the form of a cash benefit Executive compensation packages - Answers Emphasize long-term or deferred rewards over short-term rewards Discretionary bonus - Answers awarded on an objective basis Predetermined allocation bonus - Answers awarded to executives, are based on a fixed formula Target plan bonus - Answers ties bonuses to executives' performance Deferred Compensation - Answers Plan that provides income to employees at some future time as compensation for work performed now. Stock options - Answers stocks purchased at a designated price for a specific time Stock grants - Answers a company offers stock to employees Exercise of stock grants - Answers purchase of stock Disposition - Answers sale of stock Restricted Stock - Answers Executive is awarded its company stock options or stock units at the market or a discounted price Golden Parachutes - Answers Provide executives pay and benefits following termination due to ownership change or corporate takeover (merger or combining of two separate companies) Platinum Parachutes - Answers lucrative awards that compensate departing executives with severance pay, continuation of company benefits, and even stock options Clawback Provisions - Answers Allow board of directors to take back performance-based compensation when performance goals were not achieved Disclosure Rules - Answers Clarify disclosure of compensation to CEO and top executives Contingent Workers - Answers Individuals who do not have an implicit or explicit contract for ongoing employment Part-time Employees - Answers works fewer than 35 hours per week Job Sharing - Answers Two or more part-timers perform one job Temporary Workers - Answers - Fill in for core employees - Help ease high demand periods - Help determine future employment needs -May be assessed for a core position - Don't receive company benefits Leased Employee Arrangements - Answers Lease company does all HR functions Independent Contractors, Freelancers, and Consultants - Answers Establish working relationships with companies on their own Why is there a Rise in Use of Contingent Workers? - Answers - Economic recessions: companies often replace core employees with contingent employees - International competition: contingent employment is less costly than core employment,reducing the difference between higher labor costs in the United States compared to other countries - Shift from manufacturing to a service economy