Quiz 11: Legally Required Benefits

Strategic Compensation

Business
43
Questions
0
True/False
30
Choices
13
Essay
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Questions

Q1
Free

As of March 2009, how much did U.S. companies spend per employee on average to provide legally required benefits?

Multiple Choice
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A) $4,400
B) $370
C) $7,300
D) $730
Answer:
A) $4,400
Q2
Free

In 2009, Carnation Candles had 100 employees. Approximately how much did the legally required benefits cost the company that year?

Multiple Choice
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A) $650,000
B) $580,000
C) $890,000
D) $440,000
Answer:
D) $440,000
Q3
Free

The first 4 quarters of the last 5 completed calendar quarters in the previous year is the base period for which benefit?

Multiple Choice
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A) OASDI
B) Medicare Part A
C) unemployment insurance
D) workers' compensation
Answer:
C) unemployment insurance
Q4

If an employee wants to apply for unemployment benefits, how much will s/he have to have earned, in the last four quarters, to qualify?

Multiple Choice
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A) $100 total
B) $1,000 total
C) $5,000 total
D) $10,000 total
Answer:

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Q5

How often will Jill receive an unemployment check?

Multiple Choice
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A) daily
B) weekly
C) bi-monthly
D) monthly
Answer:

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Q6

What is the only state that requires employee contributions under the Federal Unemployment Tax Act (FUTA)?

Multiple Choice
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A) Michigan
B) Florida
C) Alaska
D) California
Answer:

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Q7

If the CEO of a new company asked you how much per employee she will be taxed by FUTA, what would you tell her?

Multiple Choice
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A) 3.5% of the first $7,000
B) 6.2% of the first $7,000
C) 6.2% of the first $10,000
D) 3.5% of the first $10,000
Answer:

A) You need to subscribe to get the answer.

Q8

To be fully insured under OASDI, an employee would have to work at least how long?

Multiple Choice
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A) 24 months
B) 5 years
C) 10 years
D) 12 months
Answer:

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Q9

In 2011, how much would you have to earn to qualify for one quarter of credit for OASDI coverage?

Multiple Choice
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A) $625 for each quarter
B) $760 for each quarter
C) $920 for each quarter
D) $1,120 for each quarter
Answer:

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Q10

Samuel's full retirement age is 65 years old and his monthly benefit at that age is $1,000. According to the Social Security Administration retirement program, if Samuel decides to take retirement as early as age 63, his monthly benefit will be

Multiple Choice
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A) Equal to $1,000
B) Greater than $1,000
C) Less than $1,000 but greater than $0
D) $0
Answer:

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Q11

In 2022, how old will Cary have to be to receive full Social Security benefits?

Multiple Choice
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A) 57
B) 62
C) 65
D) 67
Answer:

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Q12

The average monthly benefit for all retired workers earning old age benefits as of June 2010 was how much?

Multiple Choice
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A) $425
B) $780
C) $1,170
D) $1,712
Answer:

A) You need to subscribe to get the answer.

Q13

To receive OASDI disability benefits, Sung Lee's disability would have to be expected to last at least how long?

Multiple Choice
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A) 6 months
B) 12 months
C) 3 months
D) 18 months
Answer:

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Q14

Medicare Part A is based on what type of health care option?

Multiple Choice
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A) preferred provider plan
B) medical savings account
C) managed care plan
D) fee-for-service
Answer:

A) You need to subscribe to get the answer.

Q15

How is Medicare Part A financed?

Multiple Choice
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A) payroll taxes paid only by employers
B) out-of-pocket
C) payroll taxes paid by both employers and employees
D) congressional fiat
Answer:

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Q16

Which of the following is covered by Medicare Part A?

Multiple Choice
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A) home health care
B) IV drugs
C) surgery expenses
D) doctor's bills
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Q17

What were the Medicare Part A monthly premiums in 2011?

Multiple Choice
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A) $450
B) $250
C) $600
D) $161
Answer:

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Q18

If Fred signs up for Medicare Part B, what percent of his medical services and supplies will be covered after he has paid his annual deductible?

Multiple Choice
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A) 25%
B) 33%
C) 60%
D) 80%
Answer:

A) You need to subscribe to get the answer.

Q19

Medicare Select is one of the choices under which Medicare Plan?

Multiple Choice
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A) Medicare Prescription Drug Program
B) Medicare Advantage
C) Medigap
D) Medicare+Choice
Answer:

A) You need to subscribe to get the answer.

Q20

Which Medicare plan offers enrollees lower premiums in exchange for limiting their choice of health care providers?

Multiple Choice
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A) Medicare+Choice
B) Medigap
C) Medicare Select
D) Medicare Advantage
Answer:

A) You need to subscribe to get the answer.

Q21

This Medicare Plan was established with the passage of the Balanced Budget Act of 1997 as an alternative to the original program (parts A & B).

Multiple Choice
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A) Medicare Select
B) Medicare Prescription Drug Program
C) Medicare Advantage
D) Medigap
Answer:

A) You need to subscribe to get the answer.

Q22

Which Medicare plan allows enrollees to use medical savings accounts?

Multiple Choice
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A) Medicare Advantage
B) Medigap
C) Medicare Select
D) Medicare Prescription Drug Program
Answer:

A) You need to subscribe to get the answer.

Q23

Medicare Prescription Drug Program will cover how much of Silvia's prescription costs, after she meets the initial $295 deductible?

Multiple Choice
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A) 60%
B) 75%
C) 90%
D) 50%
Answer:

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Q24

Thelma is on the Medicare Prescription Drug Program and has just spent over $5,100 out-of-pocket on medications, how much of the prescription costs will Medicare now cover for her?

Multiple Choice
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A) 67%
B) 100%
C) 50%
D) 95%
Answer:

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Q25

Which one of the following is a wrong belief regarding the Social Security System in the United States?

Multiple Choice
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A) The viability of Social Security programs has been a subject of heated debates between Democrats and Republicans across the country.
B) The Social Security taxes paid by today's workers and their employers are used to pay the benefits for today's retirees and other beneficiaries.
C) Social Security taxes paid by employees and their employers are held in interest-bearing accounts set aside by the federal government to meet their own future retirement income needs.
D) The Social Security System is a pay-as-you-go system.
Answer:

A) You need to subscribe to get the answer.

Q26

MomPop's General Store can avoid paying workers' compensation taxes if it keeps its staff to less than how many employees?

Multiple Choice
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A) 12
B) 50
C) 100
D) 25
Answer:

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Q27

What is the only state where employers are not required to fund workers' compensation programs?

Multiple Choice
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A) Michigan
B) New York
C) Texas
D) Oregon
Answer:

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Q28

Under the Family and Medical Leave Act, for Pierre to take time off to take care of his wife and new child how many hours would he have had to work in the previous 12 months?

Multiple Choice
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A) 1,000
B) 1,250
C) 1,600
D) 800
Answer:

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Q29

Due to the fact that the costs of benefits has risen so dramatically in recent years, the majority of the companies decided to finance discretionary benefits using

Multiple Choice
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A) noncontributory financing.
B) contributory financing.
C) employee-financed benefits.
D) employer-financed benefits.
Answer:

A) You need to subscribe to get the answer.

Q30

Mary works at a pharmaceutical company as a customer service representative. Her employer allows her to choose the set of benefits she will receive on top of preestablished sets of benefits such as medical insurance, and term life insurance. The company gave her credits equal to 6% of her salary with which she decided to purchase dental and vision insurance. This pharmaceutical company uses what kind of benefits plan?

Multiple Choice
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A) cafeteria plan
B) flexible benefits plan
C) employee-financed plan
D) core plus option plan
Answer:

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Q31

Income discontinuity caused by the ________ led to the Social Security Act as a means to protect families from financial devastation in the event of unemployment.

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Q32

The ________ is the minimum period of time an individual must be employed before becoming eligible to receive unemployment insurance under the Social Security Act of 1935.

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Q33

Both employers and employees finance Medicare Part A benefits through payroll taxes of ________ percent on all earnings.

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Q34

________ plans emphasize cost control by limiting an employee's choice of doctors and hospitals, and often pay a higher level of benefits if health care is received from approved providers.

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Q35

________ Act contains provisions to make health care more affordable and will slowly eliminate the "donut hole" coverage gap.

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Q36

In 2011, the OASDI tax rate was reduced by 2% for employees, which leads to a ________ percent effective tax rate for employees.

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Q37

Violations of an ________ occur when an employer fails to reveal the exposure of one or more workers to harmful substances, or the employer does not disclose a medical condition typically caused by exposure.

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Q38

________ occurs when a worker has his or her job status negatively affected or is terminated as a result of filing a workers' compensation claim.

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Q39

________ specify insurance rates based on classifications of businesses.

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Q40

________ financing implies that the company assumes total costs for each discretionary benefit.

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Q41

How does a state determine if an individual is eligible for unemployment insurance benefits?

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Q42

Explain disability benefits under OASDI. Compare it with the workers' compensation.

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Q43

Briefly discuss the components of legally required benefits. How can HR managers minimize the costs that are associated with legally required benefits?

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