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Chapter 13 - Providing Employee Benefits Chapter 13 Providing Employee Benefits True / False Questions 1. Since benefits packages are more complex than pay structures, they are harder for employees to understand and appreciate. True False 2. The addition of creative benefits packages in the worker's compensation portfolio provides employers a competitive edge in acquiring and retaining talented employees in their organization. True False 3. Benefits like performance oriented bonus and annual profit sharing provided to employees are required by law in the U.S. True False 4. All U.S. employees, including federal, state, and local government employees, are covered under the Old Age, Survivors, Disability, and Health Insurance program. True False 5. Social Security benefits are free from federal income taxes and state taxes in about half the states. True False 6. Spouses of covered earners do not receive social security benefits if they have no covered earnings. True False 13-1 Chapter 13 - Providing Employee Benefits 7. The unemployment insurance program is financed through federal and state taxes on both employees and employers. True False 8. Under the workers compensation program, an employee need not show that the employer was grossly negligent in order to receive compensation. This implies employees are eligible for the compensation even if their injuries are self-inflicted. True False 9. The Family and Medical Leave Act of 1993 requires organizations with 50 or more employees within a 75-mile radius to provide as much as 12 weeks of unpaid leave to qualifying employees. True False 10. Benefits provided to domestic partners of employees have the same tax advantages as benefits provided to their spouses. True False 11. Employers in the U.S. are legally required to provide 30 days of paid vacation to both new and existing employees every year. True False 12. As an employee benefit, personal days are designed to extend a Tuesday or Thursday holiday into a long weekend for employees. True False 13. For the average person, the most important benefit is a pension program. True False 13-2 Chapter 13 - Providing Employee Benefits 14. Recent data found that among workers with health insurance, about two-thirds were enrolled in a PPO. True False 15. Employees are most likely to benefit from a flexible spending account if they have predictable health care expenses, such as insurance premiums. True False 16. Disability insurance payments are usually less than 50 percent of the employee's salary. True False 17. A defined contribution plan guarantees a specified level of retirement income. True False 18. ERISA requires covered organizations to establish employee pension plans and to do so within certain management and funding guidelines. ... View Full Document

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