Employee Benefits And Services! HRM Trivia Questions Quiz
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The indirect financial and nonfinancial payments employees receive for continuing their employment with a company are called ________.
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Compensation
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Salary
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Benefits
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Remuneration
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Welcome to the HRM trivia quiz on Employee Benefits and Services! There are some things that people who hold a certain position get to enjoy such as allowances, benefits and services. As an HRM, it is your duty to ensure that only those at the level get to enjoy the benefits and they are awarded appropriately. Do take up the See morequiz, and get to refresh your understanding!
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- 2.
Nonfinancial payments like health and life insurance, pensions, time off with pay, and childcare facilities are examples of ________.
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Competency-based incentives
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Variable pay
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Benefits
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Bonuses
Correct Answer
A. BenefitsExplanation
Nonfinancial payments such as health and life insurance, pensions, time off with pay, and childcare facilities are considered benefits. Benefits are additional perks and rewards provided by employers to employees, apart from their regular salary or wages. These benefits are aimed at improving the overall well-being and quality of life of employees, and they often serve as an incentive to attract and retain talented individuals in the organization.Rate this question:
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- 3.
Which of the following benefits is required by federal or state law?
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Unemployment insurance
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Disability insurance
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Health insurance
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Pensions
Correct Answer
A. Unemployment insuranceExplanation
Unemployment insurance is a benefit that is required by federal or state law. It is a form of social insurance that provides financial assistance to individuals who have lost their jobs and are actively seeking employment. This benefit is mandated by law to ensure that workers have a safety net in case of job loss, and to help stabilize the economy during periods of high unemployment.Rate this question:
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- 4.
All of the following benefits are required by federal or state law EXCEPT ________.
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Workers' compensation
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Unemployment insurance
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Disability insurance
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Maternity leave
Correct Answer
A. Disability insuranceExplanation
Disability insurance is not required by federal or state law. While workers' compensation, unemployment insurance, and maternity leave are mandated benefits, disability insurance is typically not required. However, some states may have their own disability insurance programs or require certain employers to provide disability insurance.Rate this question:
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- 5.
Which of the following terms refers to benefits for time not worked, such as unemployment insurance, vacation and holiday pay, and sick pay?
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Supplemental pay benefits
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Employee assistance
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Financial incentives
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Premium benefits
Correct Answer
A. Supplemental pay benefitsExplanation
Supplemental pay benefits refer to the additional compensation provided to employees for time not worked, such as unemployment insurance, vacation and holiday pay, and sick pay. These benefits are designed to provide financial support and security to employees during periods when they are unable to work or need time off. They serve as a form of compensation beyond regular wages or salaries and are aimed at enhancing employee well-being and work-life balance.Rate this question:
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- 6.
Keith works as a construction foreman, and he is viewed as a reliable, competent employee. Keith was recently injured in a car accident while on vacation, and his injuries are so severe that he will not be able to return to work. Which of the following would most likely provide Keith with benefits?
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Group life insurance
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Unemployment insurance
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Workers' compensation insurance
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Supplemental unemployment benefits
Correct Answer
A. Unemployment insuranceExplanation
Unemployment insurance would most likely provide Keith with benefits in this situation. Since Keith is unable to return to work due to his severe injuries, he would be considered unemployed and eligible for unemployment benefits. These benefits would provide financial support to Keith during his period of unemployment, helping him to cover his living expenses until he is able to find another job or recover from his injuries.Rate this question:
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- 7.
Which of the following provides pay to an employee when he or she is temporarily out of work because of illness?
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Sick leave
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Severance pay
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Supplemental pay
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Workers' compensation
Correct Answer
A. Sick leaveExplanation
Sick leave is a type of paid leave provided to employees when they are unable to work due to illness. It allows employees to take time off from work to recover from their illness without losing their regular pay. This benefit is typically offered by employers to support the well-being and health of their employees. Sick leave is different from other types of pay mentioned in the options such as severance pay, supplemental pay, and workers' compensation, as they are not specifically designed to provide pay during temporary illness.Rate this question:
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- 8.
What is the maximum number of weeks of unpaid leave that an employee may take under the Family and Medical Leave Act?
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Six
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Ten
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Twelve
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Sixteen
Correct Answer
A. TwelveExplanation
The maximum number of weeks of unpaid leave that an employee may take under the Family and Medical Leave Act is twelve. This law allows eligible employees to take up to twelve weeks of unpaid leave for specific reasons such as caring for a newborn, adopting a child, or dealing with a serious health condition of their own or a family member. This provision ensures that employees have job protection and can take the necessary time off to handle important family and medical matters without the fear of losing their job.Rate this question:
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- 9.
All of the following are true statements regarding the application of the Family and Medical Leave Act EXCEPT ________.
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Employers must receive advance notice and medical certification from the employee
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Eligible employees must have worked for the employer for at least one year
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Employees must be employed at job sites with at least 50 employees
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Up to 12 weeks must be granted in a 12-month period
Correct Answer
A. Employers must receive advance notice and medical certification from the employeeExplanation
The correct answer is "employers must receive advance notice and medical certification from the employee." This statement is false because under the Family and Medical Leave Act, employers are not required to receive advance notice and medical certification from the employee. However, the other statements are true: eligible employees must have worked for the employer for at least one year, employees must be employed at job sites with at least 50 employees, and up to 12 weeks must be granted in a 12-month period.Rate this question:
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- 10.
To be eligible for leave under the Family and Medical Leave Act, an employee must have worked ________ hours during the past twelve consecutive months.
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850
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1000
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1250
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1600
Correct Answer
A. 1250Explanation
To be eligible for leave under the Family and Medical Leave Act, an employee must have worked a minimum of 1250 hours during the past twelve consecutive months. This requirement ensures that the employee has a significant amount of work history with the company, demonstrating a level of commitment and dedication. It also ensures that the employee has met the threshold for eligibility, allowing them to take advantage of the benefits provided by the Family and Medical Leave Act.Rate this question:
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- 11.
Eric has worked full-time for a large manufacturing company for over three years. Eric and his wife have recently adopted a baby, and Eric wants to take time off from work to care for the child. Which of the following laws most likely applies to Eric's situation?
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Pregnancy Discrimination Act
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Family and Medical Leave Act
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Title VII of the Civil Rights Act
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Health Insurance Portability and Accountability Act
Correct Answer
A. Family and Medical Leave ActExplanation
The Family and Medical Leave Act (FMLA) most likely applies to Eric's situation. The FMLA allows eligible employees to take unpaid leave for up to 12 weeks in a 12-month period for the birth or adoption of a child, to care for a family member with a serious health condition, or for their own serious health condition. Since Eric wants to take time off to care for his recently adopted baby, the FMLA would provide him with the legal protection to do so.Rate this question:
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- 12.
The Family and Medical Leave Act ________.
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Provides guidelines regarding what rates of return employers should use in computing their pension plan values
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Ensures that an employer must grant an employee up to 12 weeks of leave in a 12-month period for the birth or care of a newborn child, placement of a child for adoption, to care for a spouse, child, or parent with a serious health condition, or to care for the employee's own serious health condition
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Prohibits an employer's health plan from using incentives to encourage employees to leave the hospital after childbirth after less than the legislatively-determined minimum stay
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Sets minimum requirements for protecting individuals' health-care data accessibility and confidentiality
Correct Answer
A. Ensures that an employer must grant an employee up to 12 weeks of leave in a 12-month period for the birth or care of a newborn child, placement of a child for adoption, to care for a spouse, child, or parent with a serious health condition, or to care for the employee's own serious health conditionExplanation
The correct answer is the Family and Medical Leave Act ensures that an employer must grant an employee up to 12 weeks of leave in a 12-month period for various reasons such as the birth or care of a newborn child, placement of a child for adoption, caring for a spouse, child, or parent with a serious health condition, or caring for the employee's own serious health condition. This act provides job protection and allows employees to take time off for important family and medical reasons without fear of losing their job.Rate this question:
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- 13.
Which of the following is NOT an employer cost associated with granting leave to employees under the Family and Medical Leave Act?
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Paying temporary workers
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Recruiting replacement workers
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Paying employee for time not worked
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Compensating for lower productivity of new workers
Correct Answer
A. Paying employee for time not workedExplanation
The correct answer is paying employee for time not worked. This is not an employer cost associated with granting leave under the Family and Medical Leave Act because the Act requires employers to provide unpaid leave to eligible employees, not paid leave. Therefore, employers are not required to pay employees for the time they are not working while on leave.Rate this question:
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- 14.
Rita was terminated from her position as an accounts manager with Carson Financial, Inc. On her last day at work, Rita received a check for $3,500. Which of the following did Rita most likely receive from Carson Financial?
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Merit pay
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Annual bonus
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Severance pay
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Performance pay
Correct Answer
A. Severance payExplanation
Rita most likely received severance pay from Carson Financial. Severance pay is typically given to employees who are terminated from their positions as a form of compensation to help them during the transition period until they find a new job. It is usually a lump sum payment and is separate from regular salary or bonuses. Since Rita was terminated from her position, it is reasonable to assume that the $3,500 check she received on her last day of work was severance pay.Rate this question:
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- 15.
All of the following are typical reasons that employers provide severance pay when downsizing EXCEPT ________.
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Reducing litigation chances
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Ensuring good public relations
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Reassuring remaining employees
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Adhering to government requirements
Correct Answer
A. Adhering to government requirementsExplanation
Severance pay is typically provided by employers when downsizing for several reasons. It helps reduce the chances of litigation from employees who may feel unfairly treated or wrongfully terminated. It also ensures good public relations by demonstrating that the company values its employees and treats them fairly during difficult times. Severance pay reassures remaining employees that their jobs are secure and that the company cares about their well-being. However, adhering to government requirements is not a typical reason for providing severance pay when downsizing.Rate this question:
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- 16.
Elizabeth works at an auto manufacturing firm that recently shut down for five weeks to change machinery. However, during the shutdown, Elizabeth was able to maintain her standard of living because of the firm's ________.
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Supplemental unemployment benefits
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Workers' compensation insurance
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Disability insurance
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Severance pay
Correct Answer
A. Supplemental unemployment benefitsExplanation
During the shutdown, Elizabeth was able to maintain her standard of living because of the firm's supplemental unemployment benefits. These benefits are provided to employees who are temporarily out of work due to reasons beyond their control, such as a company shutdown or layoff. These benefits help to partially replace the lost income during the period of unemployment, allowing employees like Elizabeth to continue meeting their financial obligations and maintain their standard of living.Rate this question:
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- 17.
Which of the following requires employers to treat women affected by pregnancy, childbirth, or related medical conditions the same as any employee not able to work, with respect to all benefits?
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Family and Medical Leave Act
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Pregnancy Discrimination Act
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Comprehensive Omnibus Budget Reconciliation Act
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Health Insurance Portability and Accountability Act
Correct Answer
A. Pregnancy Discrimination ActExplanation
The Pregnancy Discrimination Act requires employers to treat women affected by pregnancy, childbirth, or related medical conditions the same as any employee not able to work, with respect to all benefits. This means that pregnant employees must be provided with the same benefits and accommodations as other employees who are unable to work due to a medical condition. The act aims to prevent discrimination against pregnant women in the workplace and ensure that they are treated fairly and equally.Rate this question:
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- 18.
Who contributes funds for workers' compensation benefits?
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State governments
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Federal government
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Insurance providers
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Employers
Correct Answer
A. EmployersExplanation
Employers contribute funds for workers' compensation benefits. This is because workers' compensation is a form of insurance that provides financial benefits to employees who suffer work-related injuries or illnesses. Employers are required by law to provide this coverage and pay for it. The funds collected from employers are then used to compensate employees for medical expenses, lost wages, and other related costs resulting from workplace injuries or illnesses. State governments may also have a role in regulating and overseeing the workers' compensation system, but the primary responsibility for funding these benefits lies with employers.Rate this question:
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- 19.
Which of the following provides income and medical benefits to employment-related accident victims or their dependents?
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Severance pay
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Family and medical leave
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Workers' compensation
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Health insurance benefits
Correct Answer
A. Workers' compensationExplanation
Workers' compensation provides income and medical benefits to employment-related accident victims or their dependents. It is a form of insurance that employers are required to have in order to provide coverage for employees who are injured or become ill as a result of their job. Workers' compensation typically covers medical expenses, lost wages, and rehabilitation costs for the injured worker. It also provides benefits to the dependents of workers who are killed on the job. Severance pay, family and medical leave, and health insurance benefits do not specifically provide income and medical benefits to employment-related accident victims.Rate this question:
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- 20.
Employers must provide employees who have work-related injuries with all of the following EXCEPT ________.
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Cash benefits
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Medical services
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Hospital services
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Time off with full pay
Correct Answer
A. Time off with full payExplanation
Employers are required to provide employees with cash benefits, medical services, and hospital services in case of work-related injuries. However, they are not obligated to provide time off with full pay. This means that while employees may receive compensation and necessary medical treatment, they may not necessarily receive paid time off during their recovery.Rate this question:
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- 21.
Which of the following conditions must be met for an injured employee to earn workers' compensation from the employer?
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The employee was injured while on the job.
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The employee suffered the injury through no fault of his or her own
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The employee worked full-time for the employer for a minimum of 12 months.
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The employee received adequate job training to understand the position's requirements.
Correct Answer
A. The employee was injured while on the job.Explanation
For an injured employee to earn workers' compensation from the employer, the condition that must be met is that the employee was injured while on the job. This means that the injury occurred during the course of employment and is directly related to the employee's work duties or activities. The other conditions mentioned, such as the employee suffering the injury through no fault of their own, working full-time for the employer for a minimum of 12 months, and receiving adequate job training, are not necessarily requirements for earning workers' compensation.Rate this question:
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- 22.
Which of the following is a popular workers' compensation cost-control measure that involves coordinating the medical care and health insurance coverage for each injured employee?
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Nurse management
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Case management
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Health maintenance
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Medical rehabilitation
Correct Answer
A. Case managementExplanation
Case management is a popular workers' compensation cost-control measure that involves coordinating the medical care and health insurance coverage for each injured employee. It aims to ensure that injured employees receive appropriate and timely medical treatment while also minimizing unnecessary costs. Case managers work closely with healthcare providers, insurance companies, and injured employees to coordinate and monitor the entire process, from initial treatment to rehabilitation and return to work. By effectively managing the case, they can help control costs, improve outcomes, and ensure that injured employees receive the necessary care and support they need.Rate this question:
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- 23.
Which health benefit is offered by almost all employers?
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Vision insurance
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Chiropractic insurance
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Prescription drug coverage
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Health maintenance organization
Correct Answer
A. Prescription drug coverageExplanation
Prescription drug coverage is offered by almost all employers as a health benefit. This coverage helps employees pay for their necessary medications, reducing their out-of-pocket expenses. It ensures that employees have access to the medications they need to maintain their health and well-being. Prescription drug coverage is a valuable benefit that helps employees afford the high costs of medications, making it a common offering by employers.Rate this question:
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- 24.
Which of the following is a prepaid health care system that provides medical services for employees who pay a nominal fee?
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PPO
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HMO
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DMO
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ESOP
Correct Answer
A. HMOExplanation
HMO, which stands for Health Maintenance Organization, is a prepaid health care system that provides medical services for employees who pay a nominal fee. HMOs typically require members to choose a primary care physician who coordinates their healthcare and refers them to specialists as needed. This type of system focuses on preventive care and offers a network of healthcare providers for members to choose from. HMOs often have lower out-of-pocket costs for members compared to other healthcare options.Rate this question:
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- 25.
_______ are groups of health care providers that contract with employers, insurance companies, or third-party payers to provide medical care services at a reduced fee.
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PPOs
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HMOs
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DMOs
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ADDs
Correct Answer
A. PPOsExplanation
PPOs, or Preferred Provider Organizations, are groups of healthcare providers that have contracts with employers, insurance companies, or third-party payers. These contracts allow PPOs to provide medical care services at a reduced fee. PPOs offer a network of healthcare providers that patients can choose from, and they have the freedom to see specialists without a referral. This flexibility and discounted rates make PPOs an attractive option for individuals looking for healthcare coverage.Rate this question:
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- 26.
The primary difference between health maintenance organizations and preferred provider organizations is that ________.
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PPOs are less costly than HMOs
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HMOs are more flexible than PPOs
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HMOs offer mental health services while PPOs do not
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PPOs allow patients to choose from a list of doctors without referrals
Correct Answer
A. PPOs allow patients to choose from a list of doctors without referrals -
- 27.
All of the following are the most likely reasons that mental health costs are rising EXCEPT ________.
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Widespread drug and alcohol problems
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More mental health referrals by specialists
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Mental health claims triggering health care claims
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Laws requiring employers to offer mental health benefits
Correct Answer
A. More mental health referrals by specialistsExplanation
The given answer, "more mental health referrals by specialists," is the exception because it suggests that an increase in mental health referrals by specialists is not a reason for the rising costs of mental health. The other options, such as widespread drug and alcohol problems, mental health claims triggering health care claims, and laws requiring employers to offer mental health benefits, all indicate factors that could contribute to the rising costs.Rate this question:
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- 28.
Which of the following sets minimum mental health care benefits?
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Civil Rights Act
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Employee Mental Health Act
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Americans with Disabilities Act
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Mental Health Parity Act
Correct Answer
A. Mental Health Parity ActExplanation
The Mental Health Parity Act sets minimum mental health care benefits. This act requires insurance plans to provide equal coverage for mental health conditions as they do for physical health conditions. It ensures that individuals with mental health conditions receive the same level of coverage and access to treatment as those with physical health conditions. The act aims to eliminate any discrimination or disparities in insurance coverage for mental health care.Rate this question:
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- 29.
Which of the following requires that most private employers continue to make health benefits available to terminated or retired employees and their families for a period of time?
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FMLA
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COBRA
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OSHA
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ADA
Correct Answer
A. COBRAExplanation
COBRA (Consolidated Omnibus Budget Reconciliation Act) requires that most private employers continue to make health benefits available to terminated or retired employees and their families for a period of time. This act allows individuals to temporarily continue their health insurance coverage after leaving their job, ensuring that they and their families have access to healthcare during the transition period.Rate this question:
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- 30.
The Consolidated Omnibus Budget Reconciliation Act ________.
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Prohibits an employer's health plan from using incentives to encourage employees to leave the hospital after childbirth after less than the legislatively-determined minimum stay
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Limits the ability of health plans to set annual or lifetime maximums on mental and nervous disorder benefits
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Requires that most private employers continue to make health benefits available to terminated or retired employees and their families for a period of time
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Sets minimum requirements for protecting individuals' health-care data accessibility and confidentiality
Correct Answer
A. Requires that most private employers continue to make health benefits available to terminated or retired employees and their families for a period of timeExplanation
The Consolidated Omnibus Budget Reconciliation Act requires that most private employers continue to make health benefits available to terminated or retired employees and their families for a period of time. This means that even after an employee or their family members are no longer actively employed, they can still access health benefits through their former employer for a certain period. This provision ensures that individuals and their families have continued access to healthcare coverage even after leaving a job or retiring.Rate this question:
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- 31.
COBRA requires most private employers to continue to make health benefits available to terminated or retired employees and their families for a period of time, generally ________ months
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6
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12
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18
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24
Correct Answer
A. 18Explanation
COBRA requires most private employers to continue providing health benefits to terminated or retired employees and their families for a certain period of time. In this case, the correct answer is 18 months. This means that after an employee is terminated or retires, they and their family members can still receive health benefits for a year and a half.Rate this question:
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- 32.
Which of the following is NOT a true statement about the Protection and Affordable Care Act of 2010?
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Employers must offer health insurance coverage to employees who work at least 30 hours per week.
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Employers will be required to pay a 20% excise tax on high-cost health insurance plans
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Contributions to health care flexible spending accounts have been capped at $2,500.
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Health plans with dependent coverage must expand eligibility up to age 26.
Correct Answer
A. Employers will be required to pay a 20% excise tax on high-cost health insurance plansExplanation
The correct answer is "Employers will be required to pay a 20% excise tax on high-cost health insurance plans." This statement is not true because the Protection and Affordable Care Act of 2010 does not require employers to pay a 20% excise tax on high-cost health insurance plans.Rate this question:
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- 33.
Which of the following represents the largest proportion of all reported disabilities?
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Respiratory diseases
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Cardiovascular diseases
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Mental illness
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Cancer
Correct Answer
A. Mental illnessExplanation
Mental illness represents the largest proportion of all reported disabilities because it encompasses a wide range of conditions that affect a person's thinking, behavior, and emotions. These conditions can have a significant impact on a person's ability to function and participate fully in daily life. Additionally, mental illness is a growing concern globally, with increasing rates of diagnoses and recognition of its impact on individuals and society.Rate this question:
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- 34.
Which of the following best describes the purpose of the Newborn Mother's Protection Act?
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Guarantee pension plans and health insurance coverage for female employees who have recently given birth
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Prohibit employer health plans from using incentives to encourage employees to leave the hospital after childbirth sooner than legally required
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Prevent employers from discriminating against women affected by pregnancy or childbirth in respect to benefits coverage
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Set minimum requirements for accessing the health records of female employees
Correct Answer
A. Prohibit employer health plans from using incentives to encourage employees to leave the hospital after childbirth sooner than legally requiredExplanation
The purpose of the Newborn Mother's Protection Act is to prohibit employer health plans from using incentives to encourage employees to leave the hospital after childbirth sooner than legally required. This means that the act aims to ensure that employers cannot pressure or incentivize new mothers to leave the hospital before they are ready, providing them with the necessary time and care after giving birth.Rate this question:
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- 35.
All of the following are preventive services offered by employers as part of their wellness programs EXCEPT ________.
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Anti-smoking incentives
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Low-cost immunizations
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Case management services
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Stress management
Correct Answer
A. Case management servicesExplanation
Employers offer preventive services as part of their wellness programs to promote employee health and well-being. Anti-smoking incentives, low-cost immunizations, and stress management are all examples of preventive services that employers commonly provide. Case management services, on the other hand, are not typically considered a preventive service. Case management services involve coordinating and managing healthcare services for individuals with complex medical conditions or needs. While important for managing healthcare, case management services are not specifically focused on preventing health issues.Rate this question:
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- 36.
In which of the following can employers and employees deposit pretax wages to pay for noncatastrophic medical expenses?
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Health maintenance organizations
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Health benefits funds
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Health savings accounts
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Deferred savings plans
Correct Answer
A. Health savings accountsExplanation
Health savings accounts (HSAs) allow both employers and employees to deposit pretax wages to pay for noncatastrophic medical expenses. HSAs are tax-advantaged savings accounts that are used in conjunction with high-deductible health plans (HDHPs). Contributions made to HSAs are not subject to federal income tax, and the funds in the account can be used to pay for qualified medical expenses. This makes HSAs a popular option for individuals and families looking to save money on healthcare costs while also enjoying tax benefits.Rate this question:
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- 37.
All of the following are health care cost-control methods used by employers EXCEPT ________.
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Requiring employees to pay high premiums
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Benefits purchasing alliances
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Requiring disability insurance
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Encouraging medical tourism
Correct Answer
A. Requiring disability insuranceExplanation
The given question asks for an exception among the listed health care cost-control methods used by employers. The correct answer is "requiring disability insurance." This method is not typically used as a cost-control measure by employers. Disability insurance is designed to provide income replacement in the event of an employee's disability, rather than controlling health care costs. The other options listed, such as requiring employees to pay high premiums, benefits purchasing alliances, and encouraging medical tourism, are all commonly used methods to control health care costs.Rate this question:
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- 38.
Which of the following provides lower rates for the employer or employee and includes all employees regardless of health or physical condition?
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Workers' compensation insurance
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Group life insurance
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Disability insurance
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Pension plans
Correct Answer
A. Group life insuranceExplanation
Group life insurance provides lower rates for the employer or employee and includes all employees regardless of health or physical condition. This is because group life insurance is a policy that covers a group of people, typically employees of a company, under a single policy. Since the risk is spread out among a larger pool of individuals, the premiums are generally lower compared to individual life insurance policies. Additionally, group life insurance often does not require medical underwriting, meaning that employees with pre-existing health conditions can still be covered.Rate this question:
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- 39.
About how many million people work part-time in the United States?
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1
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5
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11
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19
Correct Answer
A. 19Explanation
The answer is 19 because it is the highest number among the options given. Since the question asks about how many million people work part-time in the United States, the answer should be a larger number. 1 and 5 are too low, and 11 is also too low compared to 19. Therefore, 19 is the most reasonable answer.Rate this question:
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- 40.
For individuals born in 1960 or later, the full retirement age for non-discounted Social Security benefits is ________.
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62
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65
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67
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70
Correct Answer
A. 67Explanation
For individuals born in 1960 or later, the full retirement age for non-discounted Social Security benefits is 67. This means that if someone born in 1960 or later chooses to retire at the age of 67, they will receive their full Social Security benefits without any reduction.Rate this question:
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- 41.
Social Security offers all of the following EXCEPT ________.
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Survivor's benefits for those insured under the Social Security Act
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Disability payments to employees who become totally disabled
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Tax refunds for retirees who are 55 and older
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Medicare program administration
Correct Answer
A. Tax refunds for retirees who are 55 and olderExplanation
Social Security offers survivor's benefits for those insured under the Social Security Act, disability payments to employees who become totally disabled, and Medicare program administration. However, it does not offer tax refunds for retirees who are 55 and older.Rate this question:
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- 42.
How is the Social Security program funded?
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Sale of government bonds
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Tax on employee wages
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Tax on homeowners
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Tax on luxury goods
Correct Answer
A. Tax on employee wagesExplanation
The Social Security program is funded through a tax on employee wages. This means that a portion of an employee's salary is deducted and contributed towards the funding of the program. This tax is used to provide financial assistance and support to individuals who are retired, disabled, or have dependents. It ensures that these individuals have a reliable source of income and access to essential benefits.Rate this question:
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- 43.
Which of the following provides a fixed sum when employees reach a predetermined retirement age or can no longer work due to disability?
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Workers' compensation
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Social Security
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Pension plan
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Group life insurance
Correct Answer
A. Pension planExplanation
A pension plan provides a fixed sum of money to employees when they reach a predetermined retirement age or can no longer work due to disability. This is a type of retirement plan where employers contribute a certain amount of money into a fund on behalf of their employees, which is then invested to grow over time. When employees retire or become disabled, they receive regular payments from this fund, providing them with a stable income during their retirement years or in the event of disability.Rate this question:
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- 44.
Taxes on employee wages to fund Social Security apply to all earnings up to ________.
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$46,500
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$63,700
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$117,000
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$124,300
Correct Answer
A. $117,000Explanation
The correct answer is $117,000. Taxes on employee wages to fund Social Security apply to all earnings up to this amount. Any earnings above $117,000 are not subject to Social Security taxes.Rate this question:
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- 45.
Medicare provides a wide range of health services to people ________ or over.
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55
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60
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65
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70
Correct Answer
A. 65Explanation
Medicare is a government-funded health insurance program in the United States that provides coverage for individuals who are 65 years old or older. It is designed to help older adults access a wide range of health services, including hospital stays, doctor visits, preventive care, and prescription drugs. By setting the age requirement at 65, Medicare aims to ensure that older adults have affordable access to necessary healthcare services as they age.Rate this question:
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- 46.
When an employer makes all of the contributions to the pension plan, the pension plan is classified as ________.
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Qualified
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Non-qualified
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Defined contribution
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Non-contributory
Correct Answer
A. Non-contributoryExplanation
When an employer makes all of the contributions to the pension plan, the pension plan is classified as non-contributory. This means that the employees are not required to make any contributions towards their pension plan, and the employer bears the entire responsibility of funding the plan.Rate this question:
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- 47.
A plan that contains a formula for determining retirement benefits is known as a ________
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Defined contribution pension plan
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Defined benefit pension plan
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Cash balance plan
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401(k) plan
Correct Answer
A. Defined benefit pension planExplanation
A defined benefit pension plan is a retirement plan that guarantees a specific benefit amount upon retirement. The formula for determining retirement benefits is typically based on factors such as years of service and salary history. This type of plan is different from a defined contribution pension plan, where the benefit amount is determined by the contributions made and the investment performance. A cash balance plan is a hybrid plan that combines features of both defined benefit and defined contribution plans. A 401(k) plan is a type of defined contribution plan offered by employers.Rate this question:
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- 48.
Malcolm is interviewing for a new job and he is evaluating the quality of the pension plans offered for each company he is considering. One company offers a pension plan in which the company will make all contributions to the plan and will base his pension benefit on a formula linked to his pay at the time of retirement and the number of years he was with the firm. This pension plan is most likely classified as ________.
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Qualified, defined benefit
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Non-contributory, defined benefit
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Non-contributory, defined contribution
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Contributory, defined benefit
Correct Answer
A. Non-contributory, defined benefitExplanation
The pension plan described in the question is most likely classified as non-contributory, defined benefit. This is because the company will make all contributions to the plan, indicating that Malcolm does not need to contribute any of his own money. Additionally, his pension benefit will be based on a formula linked to his pay at the time of retirement and the number of years he was with the firm, which is a characteristic of a defined benefit plan.Rate this question:
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- 49.
Jenny must contribute at least 5% of her annual salary to her pension plan, and her employer contributes a set amount as well. She is given choices regarding how the money is invested. When she retires, the amount she has available will depend on how much she invested herself, and the rate of return on the investments she chose. This pension plan is most likely classified as ________.
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Qualified, defined benefit
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Non-contributory, defined benefit
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Contributory, defined contribution
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Contributory, non-qualified
Correct Answer
A. Contributory, defined contributionExplanation
This pension plan is most likely classified as contributory, defined contribution because Jenny is required to contribute a portion of her salary to the plan (at least 5%), and her employer also contributes a set amount. The amount she will have available at retirement will depend on her own contributions and the rate of return on the investments she chooses.Rate this question:
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Mar 21, 2023Quiz Edited by
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Feb 18, 2019Quiz Created by
Jake
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