MHR 416 Mini-HW Ch. 12 - SmartBook - The
Benefit Determination Process Exam Study
Set
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
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.
Which of the following is a way to improve employer return on investment in employee
benefits? - Answer Allowing employees to choose the benefits they receive by
introducing a flexible benefits package
What are the disadvantages of flexible employee benefit plans? - Answer They are
subject to the nondiscrimination requirements in Section 125 of the Internal Revenue
Code.
They increase administrative burdens and expenses
What do most organizations consider when evaluating the adequacy of employee
benefits? - Answer the financial liability of employees with and without a particular
benefit
An employee pays all health care costs up to some pre-determined rate in a
Consumer-driven or High Deductible health care plan. After that amount, the employee:
- Answer pays a rate of 10-35 percent of any additional medical services.
Historically, organizations have provided equal employee benefits for both part-time
workers and full-time workers. - Answer false
Benefit Determination Process Exam Study
Set
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
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.
Which of the following is a way to improve employer return on investment in employee
benefits? - Answer Allowing employees to choose the benefits they receive by
introducing a flexible benefits package
What are the disadvantages of flexible employee benefit plans? - Answer They are
subject to the nondiscrimination requirements in Section 125 of the Internal Revenue
Code.
They increase administrative burdens and expenses
What do most organizations consider when evaluating the adequacy of employee
benefits? - Answer the financial liability of employees with and without a particular
benefit
An employee pays all health care costs up to some pre-determined rate in a
Consumer-driven or High Deductible health care plan. After that amount, the employee:
- Answer pays a rate of 10-35 percent of any additional medical services.
Historically, organizations have provided equal employee benefits for both part-time
workers and full-time workers. - Answer false
