File: Ch12, Chapter 12, Employee BenefitsTRUE-FALSE1. Fortunately, the cost of employee benefits to organizations has remained stable over the last thirtyyears.Ans: False2. Benefits as a whole do not directly affect a worker’s performance.Ans: True3. Health insurance and retirement plans are examples of voluntary benefits.Ans: True 4. Unemployment compensation and workers’ compensation are examples of voluntary benefits.Ans: False5. To be eligible for Social Security, employees must be employed for a minimum of 80 quarters or 20 years of work.Ans: False6. Employee insurance that provides some income continuation in the event an employee is laid off is called worker’s compensation.Ans: False7. A preferred provider organization provides for continued employee benefits up to three years afteran employee leaves a job.Ans: False8. When the Pension Benefit Guaranty Corporation takes over an underfunded pension plan, if therearen’t enough assets in the pension plan to pay the retirement obligations, then taxpayers will make up the difference.Ans: True9. A retirement program that pays retiring employees a fixed retirement income based on average earning over a period of time is a defined contribution plan.Ans: False10. U.S. workers have, on average, 10 days of vacation per year.Ans: False11. Employees in Japan have 10 paid vacation mandated days.Ans: True
12. Flexible benefit plans, although more expensive to the organization, provide more choice to the workforce. Ans: False13. With a flexible spending account, an employee will take home less spendable pay.Ans: False14. A 2011 survey found that as many as 70 percent of American workers didn’t take all of their vacation time.Ans: True15. Life insurance is one of the least common, but most popular voluntary benefits an employer can offer.Ans: FalseMATCHING KEY TERMS AND DEFINITIONS16. A retirement plan pays retiring employees a fixed retirement income based on average earnings over a period of time.Ans: o) Defined benefit plan17. Retirement, disability, and survivor benefits, paid by the government to aged, former members of the labor force, the disabled, or their survivors.Ans: i) Social Security 18. Allows employees to set aside money before payroll taxes to pay heath-care or dependent care.Ans: n) Flexible spending accounts19. Employee insurance which provides some income continuation in the event an employee is injured on the job.Ans: e) Workers’ compensation20. Combines a health plan with a high deductible with a health savings account that the insured uses to pay for deductibles and medical care.Ans: m) Consumer driven health plan (CDHP)21. Membership-based, nonfinancial rewards offered to attract and keep employees.Ans: k) Employee benefits22. Employee benefits mandated by law.
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- Spring '15
- Benefits, health insurance coverage