Benefits Training Day 6b

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| By Joan Olejniczak
J
Joan Olejniczak
Community Contributor
Quizzes Created: 11 | Total Attempts: 1,609
| Attempts: 148 | Questions: 25
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1. For Deferred Comp plans, you can easily setup an eligibility filter using "Normal Hours" under the EE Payroll section to determine if an EE meets the eligibility requirement of having worked 1000 hours.

Explanation

The given statement is false. Deferred Comp plans cannot be easily set up with an eligibility filter using "Normal Hours" under the EE Payroll section to determine if an employee meets the requirement of having worked 1000 hours. There may be other criteria or calculations involved in determining eligibility for Deferred Comp plans, such as years of service or specific employment agreements.

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About This Quiz
Benefits Training Day 6b - Quiz

This quiz is a culmination of everything we have covered in the course so far-
Benefits Pre-setup
Medical, Dental Vision
FSA/HSA/HRA
STD/LTD
Basic Life/ Voluntary Life
Deferred Comp

Personalize your quiz and earn a certificate with your name on it!
2. Which is a true statement about Medical HRA's?

Explanation

The correct answer states that HRA COBRA is to be offered in two ways: with both the Medical and HRA premium, or with only the Medical premium. This means that employees who have an HRA and are eligible for COBRA coverage can choose to continue their coverage by paying both the Medical and HRA premium, or they can opt to pay only the Medical premium. This suggests that HRA's are eligible for COBRA coverage and that they are not offered as a stand-alone plan.

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3. An HRA is set up in benefits (in order to facilitate COBRA) and is setup like a(n):

Explanation

An HRA (Health Reimbursement Arrangement) is set up in benefits like a Medical Plan. This means that it functions similarly to a medical plan in terms of facilitating COBRA (Consolidated Omnibus Budget Reconciliation Act) coverage. An HRA allows employees to be reimbursed for eligible medical expenses, just like a medical plan would. It is a benefit that employers can offer to help employees cover their healthcare costs.

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4. The difference between calculating on Covered Benefit vs. Straight Salary is:

Explanation

The correct answer is that the Straight Salary calculation does not reduce the monthly amount by the Covered Benefit percentage. This means that when calculating the Straight Salary, the monthly amount remains the same regardless of the Covered Benefit percentage. On the other hand, when calculating the Covered Benefit, a rate multiplier is used to adjust the monthly amount based on the Covered Benefit percentage. Therefore, the difference lies in how the monthly amount is affected by the Covered Benefit percentage in each calculation method.

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5. Multiple filters on a single Eligibility Rule create(s):

Explanation

The correct answer is that multiple filters on a single Eligibility Rule create the requirement for the employee (EE) to meet each and every filter criteria in order to be eligible. This means that the employee must satisfy all the specified conditions in order to be considered eligible.

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6. If I need to know the amount of time an employee must wait before he/she is eligible for a benefit, I will ask the customer

Explanation

The correct answer is "What is the Probationary Period associated with this benefit?" because the probationary period is the specific amount of time an employee must wait before becoming eligible for certain benefits. By asking this question, the customer can determine when the employee will become eligible and provide the necessary information to the employee.

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7. Please choose the incorrect statement about disability plans:

Explanation

The statement "Must always be 100% ER paid" is incorrect. Disability plans can be funded by both the employer and the employee, depending on the specific plan and the agreement between the two parties. It is not necessary for the employer to pay the entire cost of the disability plan.

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8. Although you might be tempted to leave fields blank, you shouldn't because:

Explanation

Leaving fields blank can have several negative consequences. Firstly, the client might decide to use eBN or COBRA in the future, and if the fields are left blank, it may cause issues or delays in implementing these systems. Additionally, if blank columns are included in a report, they will not provide any useful information, potentially rendering the report incomplete or less informative. Lastly, certain calculations may not be possible if required fields are left blank, leading to inaccurate or incomplete results. Therefore, it is important to fill in all fields to avoid these potential problems.

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9. If you want the EE to be a Primary beneficiary on the SP Voluntary Life Plan, you must list him/her as a contact on his/her own account with the relationship set as other.

Explanation

To ensure that the EE (employee) is a primary beneficiary on the SP Voluntary Life Plan, it is necessary to list him/her as a contact on his/her own account and set the relationship as "other". This implies that the employee must have a separate account where he/she is listed as a contact and not under any specific relationship category such as spouse or child. By doing so, the employee can be designated as the primary beneficiary on the plan.

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10. For Life plans, the Underwriting section applies to New Hires and the Guaranteed issue section applies to Open Enrollment.

Explanation

The explanation for the given correct answer is that in Life plans, the Underwriting section is applicable to New Hires, which means that new employees who join the company need to go through the underwriting process to determine their eligibility and premium rates. On the other hand, the Guaranteed issue section applies to Open Enrollment, which means that during the open enrollment period, employees can enroll in the Life plan without having to go through the underwriting process. Therefore, the statement that the Underwriting section applies to New Hires and the Guaranteed issue section applies to Open Enrollment is true.

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11. You need to create a special coverage code for LTD and STD plans.

Explanation

You do not need to create a special coverage code for LTD and STD plans.

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12. Life plans with a coverage code that contains dependents cannot be set up in which of the following ways.

Explanation

not-available-via-ai

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13.
  1. Auto-Enroll (to add a blank enrollment record on the EE level) is used mostly with the "shell" setup on deferred comp plans because:

Explanation

Auto-Enroll is used with the "shell" setup on deferred comp plans because forced percentage enrollments and eligible wage plan matches require it. Additionally, a blank enrollment record is needed to make the straight deductions work. Therefore, all of the given options are correct reasons for using Auto-Enroll in this scenario.

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14. What is the most difficult part of setting up a benefit plan?

Explanation

The most difficult part of setting up a benefit plan is gathering all the information you need to set it up. This is because there are various factors and details that need to be considered, such as employee details, plan options, eligibility criteria, contribution amounts, and legal requirements. Gathering all this information can be time-consuming and challenging, as it requires coordination and communication with multiple stakeholders, including employees, HR departments, insurance providers, and legal advisors. Additionally, any missing or incorrect information can lead to errors or inefficiencies in the benefit plan, making it crucial to ensure all necessary information is collected accurately.

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15.
  1. You must use the algebraic formula to increase the max coverage amount for a disability plan if, and only if:

Explanation

The correct answer is that the plan is calculated on straight salary. This means that the disability plan coverage is based solely on the employee's salary, without any additional factors or calculations. This implies that the coverage amount can be increased by using the algebraic formula, as there are no other limitations or restrictions mentioned in the question.

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16. Group Term Life is what iSolved uses to refer to:

Explanation

Group Term Life is the term used by iSolved to describe the taxable benefit on any amount of Basic Life insurance above 50k. This means that if an employee has Basic Life insurance coverage that exceeds 50k, the additional amount will be considered a taxable benefit. The other options mentioned, such as company-paid life insurance and the employees in a group or class, are not specifically referred to as Group Term Life by iSolved.

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17. If you do not create a Third Party for a benefit plan, which of the following might happen?

Explanation

If you do not create a Third Party for a benefit plan, all of the mentioned consequences might happen. eBN will not work, meaning that users will not be able to see the extract. COBRA integration will fail, resulting in issues with managing COBRA benefits. Additionally, without a Third Party, you will not be able to send ACH or check payments to them, causing difficulties in making payments for the benefit plan. Therefore, all of the mentioned outcomes are possible if a Third Party is not created for a benefit plan.

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18. Employees can elect (select all that are correct):

Explanation

Employees have the option to choose multiple benefits from the given options. They can elect FSA Med & Dependent Care, HDHP, Limited FSA & HSA, and FSA Dependent Care only. This means that employees can choose to have both FSA Med & Dependent Care, HDHP, Limited FSA & HSA, and FSA Dependent Care only as their benefits.

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19. Which of the following is false regarding Deferred Comp plan setup?

Explanation

The statement "When you put the Third Party in the Provider field, it will send the funds to the Deferred Comp carrier" is false. The Third Party in the Provider field does not send the funds to the Deferred Comp carrier.

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20. You are building a medical plan. What happens if you do not use the correct Deduction Type when you build your deduction code?

Explanation

If you do not use the correct Deduction Type when building your deduction code, the deduction codes will not appear on your Medical Plan. This means that the deductions will not be applied or visible in the plan, potentially leading to incorrect calculations or missing deductions for the members. It is important to use the correct Deduction Type to ensure that the deduction codes are properly integrated into the Medical Plan.

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21. You should always include a Stop Date on the Plans Tab 365 days from the Start Date on the FSA and H.S.A. plans.

Explanation

Including a Stop Date on the Plans Tab 365 days from the Start Date on the FSA and H.S.A. plans is important because it ensures that the plans have a defined duration and will automatically end after one year. This helps in managing and tracking the plans effectively, as it provides clarity on when the plans will expire and need to be renewed or terminated. Without a Stop Date, it would be difficult to determine the duration of the plans and could lead to confusion or unintentional continuation of the plans beyond their intended timeframe.

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22. The "Effective Dates Based On" field on the Plans tab is:

Explanation

The "Effective Dates Based On" field on the Plans tab is used to determine when the new rates will appear on the payroll. It is also difficult to determine for bi-weekly payrolls, as they have a different pay frequency compared to other payrolls. Additionally, switching the field back and forth will change the FSA and HSA amounts. Therefore, all of the given statements are correct.

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23. If a bi-weekly customer only wants to run GTL on the 1st and 2nd payrolls of the month, you would change the Schedule Frequency on the earnings code.

Explanation

The statement is false because if a bi-weekly customer only wants to run GTL on the 1st and 2nd payrolls of the month, you would not change the Schedule Frequency on the earnings code. The correct action would be to set up a specific rule or condition in the payroll system that applies the GTL earnings code only to the 1st and 2nd payrolls of the month for the bi-weekly customer.

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24. The Start and Stop Date fields on the Plans tab for all plans aside from HSA/FSAs must be no more than 365 days apart.

Explanation

The Start and Stop Date fields on the Plans tab for all plans aside from HSA/FSAs can be more than 365 days apart.

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25. The Start and Stop Date fields on the Rates tab on COBRA Eligible plans must be no more than 365 days apart.

Explanation

The Start and Stop Date fields on the Rates tab on COBRA Eligible plans must be no more than 365 days apart. This means that the difference between the start and stop dates should not exceed one year. This requirement ensures that the COBRA coverage period remains within a reasonable timeframe and does not extend for an excessively long duration. By limiting the gap between the start and stop dates to 365 days, it helps to maintain the effectiveness and manageability of the COBRA Eligible plans.

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  • Mar 20, 2023
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  • Dec 15, 2014
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    Joan Olejniczak
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For Deferred Comp plans, you can easily setup an eligibility filter...
Which is a true statement about Medical HRA's?
An HRA is set up in benefits (in order to facilitate COBRA) and is...
The difference between calculating on Covered Benefit vs. Straight...
Multiple filters on a single Eligibility Rule create(s):
If I need to know the amount of time an employee must wait before...
Please choose the incorrect statement about disability plans:
Although you might be tempted to leave fields blank, you shouldn't...
If you want the EE to be a Primary beneficiary on the SP Voluntary...
For Life plans, the Underwriting section applies to New Hires and the...
You need to create a special coverage code for LTD and STD plans.
Life plans with a coverage code that contains dependents cannot be set...
Auto-Enroll (to add a blank enrollment record on the EE level) is used...
What is the most difficult part of setting up a benefit plan?
You must use the algebraic formula to increase the max coverage amount...
Group Term Life is what iSolved uses to refer to:
If you do not create a Third Party for a benefit plan, which of the...
Employees can elect (select all that are correct):
Which of the following is false regarding Deferred Comp plan setup?
You are building a medical plan. What happens if you do not use the...
You should always include a Stop Date on the Plans Tab 365 days from...
The "Effective Dates Based On" field on the Plans tab is:
If a bi-weekly customer only wants to run GTL on the 1st and 2nd...
The Start and Stop Date fields on the Plans tab for all plans aside...
The Start and Stop Date fields on the Rates tab on COBRA Eligible...
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