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________ provide services like financial counseling, child care referrals, elder care referrals, adoption assistance, mental health counseling, and life event planning.


A) Pension plans
B) Employee assistance programs
C) Family-friendly benefits
D) Benefit management systems

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All of the following are preventive services offered by employers as part of their wellness programs EXCEPT ________.


A) anti-smoking incentives
B) low-cost immunizations
C) case management services
D) stress management

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How is the Social Security program funded?


A) sale of government bonds
B) tax on employee wages
C) tax on homeowners
D) tax on luxury goods

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If an employee is injured at work due to a blatant disregard for company safety policies, the company is not required to pay workers' compensation.

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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?


A) FMLA
B) COBRA
C) OSHA
D) ADA

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Taxes on employee wages to fund Social Security apply to all earnings up to ________.


A) $46,500
B) $63,700
C) $117,000
D) $124,300

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Documenting employee absences, conducting exit interviews, and requiring written approval for personal leave are employer methods for controlling unemployment insurance costs.

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A plan that contains a formula for determining retirement benefits is known as a ________.


A) defined contribution pension plan
B) defined benefit pension plan
C) cash balance plan
D) 401(k) plan

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When an employer makes all of the contributions to the pension plan, the pension plan is classified as ________.


A) qualified
B) non-qualified
C) defined contribution
D) non-contributory

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The Medicare Modernization Act allows employers to establish tax-free health savings accounts.

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Which of the following refers to a plan in which employees contribute a portion of their earnings to a fund and the employer typically matches the contribution in whole or part?


A) group investment plan
B) 401(k) plan
C) deferred profit-sharing plan
D) employee stock ownership plan

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Since leaves associated with the Family and Medical Leave Act do not require employers to pay salaries, employers are not financially affected.

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Which of the following benefits is NOT classified as a type of family-friendly benefit?


A) sick leave
B) subsidized child care
C) on-site fitness facilities
D) elder care

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Orion is a business software firm based in Atlanta that employs over 400 people. Orion has traditionally provided legislatively required benefits for its employees including Social Security, workers' compensation, and unemployment insurance. In addition, Orion offers employees health and dental insurance. Orion employees work Monday through Friday on a 9 to 5 schedule. Orion's top executives are considering the idea of adding a flexible benefits plan and implementing a flexible work schedule. All of the following questions are relevant to Orion's decision to offer flextime and job sharing options to its employees EXCEPT which one?


A) What do surveys indicate regarding overall job satisfaction among Orion employees?
B) How would the productivity level of Orion's employees most likely change?
C) What work schedule configurations are legal?
D) What is the average rate of employee absenteeism at Orion?

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Employers are prohibited from inquiring about an applicant's past workers' compensation history by the Americans with Disabilities Act.

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Which of the following provides pay to an employee when he or she is temporarily out of work because of illness?


A) sick leave
B) severance pay
C) supplemental pay
D) workers' compensation

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Private employers forced to downsize are required to provide COBRA coverage, and some firms offer dismissed employees severance pay. How do employers benefit from providing severance pay to dismissed employees? How do employees benefit from COBRA?

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Severance pay is a one-time payment offe...

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Social Security offers all of the following EXCEPT ________.


A) survivor's benefits for those insured under the Social Security Act
B) disability payments to employees who become totally disabled
C) tax refunds for retirees who are 55 and older
D) Medicare program administration

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The Pension Benefits Guarantee Corporation guarantees both defined benefit plans and defined contribution plans.

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The stipulations of the Family and Medical Leave Act apply to private employers of 50 or more employees.

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