CEBS: GBA 1, Module 1 Exam 2025
Questions and Answers 100% Pass
Employee Benefits - ✔✔All forms of financial returns and tangible services and benefits
employees receive as apart of an employee relationship
Broad View of Employee Benefits - ✔✔Virtually any form of compensation other than
direct wages, including:
1. Employer's share of legally required payments (Social security and medicare,
unemployment insurance and worker's compensation benefits)
2. Payment for time not worked (paid rest periods, paid sick leave, paid vacations,
holidays, parental leave and the like)
3. Employers share of medical and medically related payments
4. Employer's share of retirement and savings plan payments
5. Misc. benefits payments (employee discounts, severance pay, educational
expenditures, and childcare among others)
Limited View of Employee Benefits - ✔✔Any type of plan sponsored or initiate
unilaterally or jointly by employers and employees in providing benefits that stem from
the employment relationship that are not underwritten by or paid for directly by
government
Reasons for Growth of Employee Benefits - ✔✔1. Business Reasons
2. Collective Bargaining -Labor management relations act (LMRA) /Taft-Hartley Act
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 1
, 3. Favorable Tax Legislation
4. Efficiency of the Employee Benefits Approach
5. Other Factors
Business Reasons - ✔✔To attract and retain capable employees; the employers
competition may have benefit plans and it's necessary to have equal or better plans to
attract and retain employees.
Collective Bargaining - ✔✔Labor unions have had a historical impact on benefits,
through collective bargaining. In 1948 the National Labor Relations Board (NLRB) ruled
in the Inland Steel case that to bargain over wages included insurance and fringes such
as pension benefits. Shortly after that W. W. Cross & Co. case ruled that wages included
a health and accident plan
The Labor Management Relations Act (LMRA) -
Taft-Hartley Act - ✔✔Set forth the framework for various labor relations including
employee benefits. It along with the Internal Revenue Code (IRC) established the
distinction between retirement benefits and welfare benefits, such as life and health
insurance.
Favorable Tax Legislation - ✔✔3 Major federal tax advantages associated with
employee benefits are:
1. Most contributions to employee benefit plans by employers are tax deductible as long
as they are reasonable business expenses.
2. With in certain limits these employer contributions are generally not considered
income to employees
3. A certain type of retirement and capital accumulation plans, assets set aside to fund
such plans accumulate tax-free to the employee until distributed
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 2
Questions and Answers 100% Pass
Employee Benefits - ✔✔All forms of financial returns and tangible services and benefits
employees receive as apart of an employee relationship
Broad View of Employee Benefits - ✔✔Virtually any form of compensation other than
direct wages, including:
1. Employer's share of legally required payments (Social security and medicare,
unemployment insurance and worker's compensation benefits)
2. Payment for time not worked (paid rest periods, paid sick leave, paid vacations,
holidays, parental leave and the like)
3. Employers share of medical and medically related payments
4. Employer's share of retirement and savings plan payments
5. Misc. benefits payments (employee discounts, severance pay, educational
expenditures, and childcare among others)
Limited View of Employee Benefits - ✔✔Any type of plan sponsored or initiate
unilaterally or jointly by employers and employees in providing benefits that stem from
the employment relationship that are not underwritten by or paid for directly by
government
Reasons for Growth of Employee Benefits - ✔✔1. Business Reasons
2. Collective Bargaining -Labor management relations act (LMRA) /Taft-Hartley Act
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 1
, 3. Favorable Tax Legislation
4. Efficiency of the Employee Benefits Approach
5. Other Factors
Business Reasons - ✔✔To attract and retain capable employees; the employers
competition may have benefit plans and it's necessary to have equal or better plans to
attract and retain employees.
Collective Bargaining - ✔✔Labor unions have had a historical impact on benefits,
through collective bargaining. In 1948 the National Labor Relations Board (NLRB) ruled
in the Inland Steel case that to bargain over wages included insurance and fringes such
as pension benefits. Shortly after that W. W. Cross & Co. case ruled that wages included
a health and accident plan
The Labor Management Relations Act (LMRA) -
Taft-Hartley Act - ✔✔Set forth the framework for various labor relations including
employee benefits. It along with the Internal Revenue Code (IRC) established the
distinction between retirement benefits and welfare benefits, such as life and health
insurance.
Favorable Tax Legislation - ✔✔3 Major federal tax advantages associated with
employee benefits are:
1. Most contributions to employee benefit plans by employers are tax deductible as long
as they are reasonable business expenses.
2. With in certain limits these employer contributions are generally not considered
income to employees
3. A certain type of retirement and capital accumulation plans, assets set aside to fund
such plans accumulate tax-free to the employee until distributed
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 2
