Question :
81) Companies use flexible benefits programs in order to:
A) simplify : 1346339
81) Companies use flexible benefits programs in order to:
A) simplify benefits administration.
B) give employees options to select the benefits most meaningful to them.
C) motivate employees to higher productivity and quality by rewarding performance.
D) give management options in selecting benefits to offer employees, which lowers the cost of the benefits program.
82) Which term refers to individual employee accounts funded by the employer, the employee, or both based on rules specified in Section 125 of the Internal Revenue Code?
A) Core-plus option plan
B) Modular plan
C) Flexible spending account
D) Health savings account
83) A ________ provides employees with minimal economic security and the ability to “purchase” additional benefits of value to them.
A) core-plus option plan
B) modular plan
C) flexible spending account
D) health savings account
84) As an HR manager, you would most likely face all of the following challenges when handling flexible benefits plans EXCEPT:
A) intense use of a benefit by employees that increases costs.
B) inadequate government guidelines and rules.
C) significant complexity of administration.
D) high potential for recordkeeping errors.
85) Which of the following is the LEAST innovative and effective method of employee benefits communication?
A) On designated Web
B) Through computer software
C) During new employee orientation
D) Through audio-visual presentations
Case 12.1
The HR Director of The Camera Center is leading the executive team through a review of the company’s benefits plan. He begins by explaining how the firm funds the benefits plan. After a few questions on that matter, he moves on to clarify what they must offer by law and what benefits the firm would like to provide.
A highly entrepreneurial, performance-driven company, The Camera Center provides an excellent profit-sharing plan and one of the best retirement packages in the industry. The firm commits a high portion of compensation funds to the benefits plan. The workforce tends to be college-educated, young professionals who are just starting their families.
The CEO wants the total benefits plan reviewed and repackaged, if necessary, to align it with The Camera Center’s business culture and strategy. He also wants to contain costs as much as possible and simplify benefits
administration.
86) Refer to Case 12.1. The HR Director’s initial explanation is about the ________ of the benefits plan.
A) contributions
B) co-payments
C) deductible
D) flexibility
87) Refer to Case 12.1. When reviewing the legally required benefits, the HR Director would most likely address:
A) health insurance.
B) pensions and retirement plans.
C) family and medical leave.
D) life and disability insurance.
88) Refer to Case 12.1. This company’s benefits mix:
A) matches the firm’s culture and objectives.
B) is almost the opposite of what the firm needs.
C) would be better if it included variable pay as well.
D) violates federal law because the firm doesn’t offer health care.
89) Refer to Case 12.1. Which of the following changes would most likely support the firm’s strategies and culture?
A) Offering sabbatical leave to new employees
B) Making contributions to employee SEPs
C) Subsidizing employee child-care costs
D) Implementing a flexible benefits program
90) Refer to Case 12.1. The HR Director suggests establishing a wellness pay incentive program at The Camera Center. Which of the following, if true, best supports this idea?
A) Employees frequently use sick days to handle personal business.
B) Many employees at the firm are nearing retirement age.
C) The firm needs additional tax advantages to offset benefits costs.
D) Cost containment at the firm is a significant issue.
Case 12.2
Tri-State Shipping employs 45 workers. They ship commodities across the country. Until recently, they had only legally required benefits, but business has become very profitable and they can now offer their employees more benefits.
The average age of their employees is 50. Most employees have been there for more than 20 years–the company prides itself on keeping workers. The majority of the jobs require heavy lifting or the operation of heavy equipment for loading and unloading trucks, trains, etc. Their workers’ compensation tax has been running about 5% per year. They are in one of the lowest workers’ compensation tax rate states, but TSS has had a lot of injuries. The lifting required and type of equipment used tends to result in a lot of sprained backs, mashed fingers, or bruised muscles. When workers are injured, they tend to heal quickly and return to work quickly.
Despite its reputation for keeping workers, the dock supervisor recently fired a 21-year old employee who had been with TSS for 12 months. Even though everyone liked him, the young man just couldn’t learn his job.
91) Refer to Case 12.2. Tri-State Shipping’s workers’ compensation tax rate is:
A) average for U.S. companies.
B) five times the U.S. average.
C) half of the U.S. average.
D) twice the U.S. average.
92) Refer to Case 12.2. Tri-State Shipping’s workers’ compensation tax rate is probably mostly influenced by their:
A) experience rating.
B) workers’ average age.
C) health insurance benefits.
D) probability of injury.
93) Refer to Case 12.2. Which of the following would be the best way to lower the firm’s workers’ compensation costs?
A) Auditing all employee claims
B) Mandating employee drug tests
C) Placing injured workers on modified duty
D) Emphasizing safe working procedures
94) Refer to Case 12.2. The young man who was fired is most likely:
A) eligible for workers’ compensation.
B) not eligible for unemployment insurance benefits.
C) not covered by ERISA because of his age.
D) eligible for unemployment insurance benefits.
95) Refer to Case 12.2. Given Tri-State Shipping’s workforce and the company’s culture, which of the following benefits would most likely support its culture?
A) Sabbatical leave
B) Health savings accounts
C) Severance pay
D) Preretirement counseling
