©BRIGHTSTARS EXAM SOLUTIONS
11/16/2024 10:16 AM
MHR 416 Mini-HW Ch. 12 - SmartBook -
The Benefit Determination Process. Exam
Questions With Correct Answers
Identify a true statement about employee benefit costs between 1955 and 1975. -
answer✔They increased at a rate almost four times greater than employee wages.
Identify the examples of employee benefits. (Check all that apply.) - answer✔- life insurance
-workers compensation
The federal government loosened wage and price controls during World War II and the Korean
War. - answer✔False
Employee benefits slowly became a costly entitlement of the American workforce because: -
answer✔they were taken on faith without hard data about payoffs.
Identify a true statement about the cost effectiveness of employee benefits. - answer✔The
majority of employee benefits are not taxable.
Identify a true statement about employee benefit costs over a 20-year period between 1955
and 1975. - answer✔It increased at a rate almost four times larger than employee wages or the
consumer price index.
Match the employee benefits with the type of government that mandated them -
answer✔workers compensation -State
Unemployment insurance and social security - federal
are that part of the total compensation package, other than pay for time worked, provided to
employees in whole or in part by employer payments. - answer✔employee benefits
Identify the ways in which employers can increase the effectiveness of employee benefits -
answer✔By planning, designing, and administrating benefits in a better way
1|Page
, ©BRIGHTSTARS EXAM SOLUTIONS
11/16/2024 10:16 AM
By educating and creating awareness among employees about benefits
During World War II and the Korean War, the climate fostered by wage and price controls
provided a perfect opportunity for unions to flex the muscles they had gained under the: -
answer✔Wagner Act of 1935.
What are the factors that need to be included in the employee benefits planning process? -
answer✔Plans to ensure external competitiveness
Integration of benefits with other compensation components
Strategies for ensuring adequacy of benefits
Many of the employee benefits that exist today were provided at employer initiative. Why did
employers implement savings and profit-sharing plans? - answer✔To improve job performance
To provide greater security for worker retirement years
In the context of benefit administration issues, what are the major questions that arise in
setting up an employee benefit package? - answer✔Are the selected benefits legally
defensible?
How much choice should employees have from a range of benefits?
How should benefits be financed?
Who should be benefited or protected?
Identify a true statement about the cost effectiveness of employee benefits. - answer✔Group-
based employee benefits can be obtained at a lower rate than individual-based benefits.
Identify a statute that affects most employee benefits, pension administration, and various
sections of the Internal Revenue Code. - answer✔Employee Retirement Income Security Act
(ERISA)
Identify a true statement about the choice available to employees in the plan coverage of a
standard benefit package. - answer✔Employees typically are not offered a choice among
employee benefits in a standard benefits package.
2|Page
11/16/2024 10:16 AM
MHR 416 Mini-HW Ch. 12 - SmartBook -
The Benefit Determination Process. Exam
Questions With Correct Answers
Identify a true statement about employee benefit costs between 1955 and 1975. -
answer✔They increased at a rate almost four times greater than employee wages.
Identify the examples of employee benefits. (Check all that apply.) - answer✔- life insurance
-workers compensation
The federal government loosened wage and price controls during World War II and the Korean
War. - answer✔False
Employee benefits slowly became a costly entitlement of the American workforce because: -
answer✔they were taken on faith without hard data about payoffs.
Identify a true statement about the cost effectiveness of employee benefits. - answer✔The
majority of employee benefits are not taxable.
Identify a true statement about employee benefit costs over a 20-year period between 1955
and 1975. - answer✔It increased at a rate almost four times larger than employee wages or the
consumer price index.
Match the employee benefits with the type of government that mandated them -
answer✔workers compensation -State
Unemployment insurance and social security - federal
are that part of the total compensation package, other than pay for time worked, provided to
employees in whole or in part by employer payments. - answer✔employee benefits
Identify the ways in which employers can increase the effectiveness of employee benefits -
answer✔By planning, designing, and administrating benefits in a better way
1|Page
, ©BRIGHTSTARS EXAM SOLUTIONS
11/16/2024 10:16 AM
By educating and creating awareness among employees about benefits
During World War II and the Korean War, the climate fostered by wage and price controls
provided a perfect opportunity for unions to flex the muscles they had gained under the: -
answer✔Wagner Act of 1935.
What are the factors that need to be included in the employee benefits planning process? -
answer✔Plans to ensure external competitiveness
Integration of benefits with other compensation components
Strategies for ensuring adequacy of benefits
Many of the employee benefits that exist today were provided at employer initiative. Why did
employers implement savings and profit-sharing plans? - answer✔To improve job performance
To provide greater security for worker retirement years
In the context of benefit administration issues, what are the major questions that arise in
setting up an employee benefit package? - answer✔Are the selected benefits legally
defensible?
How much choice should employees have from a range of benefits?
How should benefits be financed?
Who should be benefited or protected?
Identify a true statement about the cost effectiveness of employee benefits. - answer✔Group-
based employee benefits can be obtained at a lower rate than individual-based benefits.
Identify a statute that affects most employee benefits, pension administration, and various
sections of the Internal Revenue Code. - answer✔Employee Retirement Income Security Act
(ERISA)
Identify a true statement about the choice available to employees in the plan coverage of a
standard benefit package. - answer✔Employees typically are not offered a choice among
employee benefits in a standard benefits package.
2|Page
