RMIN 5110 FINAL EXAM UPDATED NEW
QUESTIONS WITH CORRECT ANSWERS |
ALREADY GRADED A+ | COMPLETE STUDY
GUIDE
Marie Curie - CORRECT ANSWER>>>>Discovered two elements:
1. Polonium
2. Radium
Help people beat cancer and live longer.
What are Employee Benefits? - CORRECT ANSWER>>>>1. All forms of compensation other
than direct wages, provided to employees
2. Total Compensation = Current Cash Compensation + Value of employee benefits
3. Employer's Share of Legally Required Payments
- Social Security (OASDI), Medicare, Unemployment Insurance, Workers Compensation, S-T
disability
4. Payments for Private Insurance Plans to Meet the Financial Consequences of Personal Pure Risk
- Loss of income due to disability (DI)
- Benefits to meet medical expenses related to injury or illness (Health Insurance, Dental
Insurance,...)
5. Employer's Share of Retirement and Savings Plan
- Meets loss of income due to retirement
- Considered a type of deferred compensation
6. s for Time Not Worked
Page 1 of 45
,- Holidays, Maternity Leave
7. Extra Cash Payments
- Moving Expenses, Suggestion Awards
8. Services - What is a company that is known for its benefits?
- Health Club, Lunch, Massage
History of US Benefits - CORRECT ANSWER>>>>1. 1935 - Social Security Act (FDR)
2. 1966 - Medicare & Medicaid
3. 1974 - ERISA/Cafeteria Plans introduced
4. 2003 - Rx Drugs Added to Medicare Program
5. 2006 - Pension Protection Act
6. 2010 - Patient Protection and Affordable Care Act
Why are Employee Benefits a part of compensation? - CORRECT ANSWER>>>>1. Tax
advantages
2. Attract and retain great employees
3. Employee morale
4. Government mandates
5. Wage controls
6. Unions
7. Motivate certain types of behavior
8. Economies of scale in group purchase
9. Changing Demographics
Favorable tax treatment in U.S. Income tax system - CORRECT ANSWER>>>>For employer:
1. Can deduct cost of benefits as a cost of doing business for income tax purposes.
2. Same as salary For employee:
1. Employees in general are not taxed on the value of employer provided benefits.
2. Taxes most often on retirement benefits when received.
2|Page
,Advantages of group insurance? - CORRECT ANSWER>>>>1. Lower costs than individual
insurance (usually) because of reduced expense loading.
2. No individual evidence of insurability
3. Ease and convenience of employer selection of insurance coverage.
4. Ease of payroll deduction in contributory and voluntary plans.
Factors contributing to the growth of EBs - CORRECT ANSWER>>>>1. Various types of
federal legislation - Social Security Act
- Age Discrimination in Employment Act (ADEA)
- Americans with Disabilities Act (ADA)
- Family Medical Leave Act (FMLA)
- Health Maintenance Organization Act of 1973 (HMO)
- Consolidated Omnibus Budget Reconciliation Act (COBRA)
- Health Insurance Portability and Accountability Act (HIPPA)
- Medicare
- Patient Protection and Affordable Care Act (PPACA)
2. Post WWII wage and price controls
3. Union demands through collective bargaining
4. Favorable tax treatment over time (no tax on value of many benefits)
Examples of Employee Benefits - CORRECT ANSWER>>>>1. Traditional
- Health insurance
- Life insurance
- Disability income plans
- Retirement plans
2. Non-Traditional
- Child-care
- Legal Service plans - Employee Assistance Plans a)
Alcohol abuse
b) Drug abuse -
Wellness programs
- Transportation programs
, Employee Benefits - CORRECT ANSWER>>>>5 Traditional Categories
1. Legally required social insurance
2. Payments for private insurance and retirement plans
3. Payments for time not worked
4. Extra cash payments to employees
5. Cost of services to employees
Are Employee Benefits Relevant? - CORRECT ANSWER>>>>1. For every dollar paid in wages,
employers spend another ~40 cents on benefits
2. Employee benefits are a major force in determining employee retention/happiness
3. Government-provided benefits (e.g., Social Security and Medicare) are by far the largest
expenditure of the federal budget
4. Government tax breaks/deductions for privately provided benefits amount to hundreds of
billions of dollars
5. Employee Benefits are in the news every day
Three Perspectives of Employee Benefits - CORRECT ANSWER>>>>1. As an employee, how
can you best utilize the benefits that you are offered?
2. As an employer, how do you make effective use of employee benefits to maximize the
value of your firm?
3. As a concerned citizen or policy-maker, what is the appropriate role for the government in
regulating/providing benefits?
VIPs for Employee Benefits and for Retirement in Particular - CORRECT ANSWER>>>>1.
Leonardo Fibonancci
2. Benjamin Gompertz
3. Edmond Halley
4. Ivring Fisher
5. Paul Samuelson
6. Solomon Huebner
4|Page
QUESTIONS WITH CORRECT ANSWERS |
ALREADY GRADED A+ | COMPLETE STUDY
GUIDE
Marie Curie - CORRECT ANSWER>>>>Discovered two elements:
1. Polonium
2. Radium
Help people beat cancer and live longer.
What are Employee Benefits? - CORRECT ANSWER>>>>1. All forms of compensation other
than direct wages, provided to employees
2. Total Compensation = Current Cash Compensation + Value of employee benefits
3. Employer's Share of Legally Required Payments
- Social Security (OASDI), Medicare, Unemployment Insurance, Workers Compensation, S-T
disability
4. Payments for Private Insurance Plans to Meet the Financial Consequences of Personal Pure Risk
- Loss of income due to disability (DI)
- Benefits to meet medical expenses related to injury or illness (Health Insurance, Dental
Insurance,...)
5. Employer's Share of Retirement and Savings Plan
- Meets loss of income due to retirement
- Considered a type of deferred compensation
6. s for Time Not Worked
Page 1 of 45
,- Holidays, Maternity Leave
7. Extra Cash Payments
- Moving Expenses, Suggestion Awards
8. Services - What is a company that is known for its benefits?
- Health Club, Lunch, Massage
History of US Benefits - CORRECT ANSWER>>>>1. 1935 - Social Security Act (FDR)
2. 1966 - Medicare & Medicaid
3. 1974 - ERISA/Cafeteria Plans introduced
4. 2003 - Rx Drugs Added to Medicare Program
5. 2006 - Pension Protection Act
6. 2010 - Patient Protection and Affordable Care Act
Why are Employee Benefits a part of compensation? - CORRECT ANSWER>>>>1. Tax
advantages
2. Attract and retain great employees
3. Employee morale
4. Government mandates
5. Wage controls
6. Unions
7. Motivate certain types of behavior
8. Economies of scale in group purchase
9. Changing Demographics
Favorable tax treatment in U.S. Income tax system - CORRECT ANSWER>>>>For employer:
1. Can deduct cost of benefits as a cost of doing business for income tax purposes.
2. Same as salary For employee:
1. Employees in general are not taxed on the value of employer provided benefits.
2. Taxes most often on retirement benefits when received.
2|Page
,Advantages of group insurance? - CORRECT ANSWER>>>>1. Lower costs than individual
insurance (usually) because of reduced expense loading.
2. No individual evidence of insurability
3. Ease and convenience of employer selection of insurance coverage.
4. Ease of payroll deduction in contributory and voluntary plans.
Factors contributing to the growth of EBs - CORRECT ANSWER>>>>1. Various types of
federal legislation - Social Security Act
- Age Discrimination in Employment Act (ADEA)
- Americans with Disabilities Act (ADA)
- Family Medical Leave Act (FMLA)
- Health Maintenance Organization Act of 1973 (HMO)
- Consolidated Omnibus Budget Reconciliation Act (COBRA)
- Health Insurance Portability and Accountability Act (HIPPA)
- Medicare
- Patient Protection and Affordable Care Act (PPACA)
2. Post WWII wage and price controls
3. Union demands through collective bargaining
4. Favorable tax treatment over time (no tax on value of many benefits)
Examples of Employee Benefits - CORRECT ANSWER>>>>1. Traditional
- Health insurance
- Life insurance
- Disability income plans
- Retirement plans
2. Non-Traditional
- Child-care
- Legal Service plans - Employee Assistance Plans a)
Alcohol abuse
b) Drug abuse -
Wellness programs
- Transportation programs
, Employee Benefits - CORRECT ANSWER>>>>5 Traditional Categories
1. Legally required social insurance
2. Payments for private insurance and retirement plans
3. Payments for time not worked
4. Extra cash payments to employees
5. Cost of services to employees
Are Employee Benefits Relevant? - CORRECT ANSWER>>>>1. For every dollar paid in wages,
employers spend another ~40 cents on benefits
2. Employee benefits are a major force in determining employee retention/happiness
3. Government-provided benefits (e.g., Social Security and Medicare) are by far the largest
expenditure of the federal budget
4. Government tax breaks/deductions for privately provided benefits amount to hundreds of
billions of dollars
5. Employee Benefits are in the news every day
Three Perspectives of Employee Benefits - CORRECT ANSWER>>>>1. As an employee, how
can you best utilize the benefits that you are offered?
2. As an employer, how do you make effective use of employee benefits to maximize the
value of your firm?
3. As a concerned citizen or policy-maker, what is the appropriate role for the government in
regulating/providing benefits?
VIPs for Employee Benefits and for Retirement in Particular - CORRECT ANSWER>>>>1.
Leonardo Fibonancci
2. Benjamin Gompertz
3. Edmond Halley
4. Ivring Fisher
5. Paul Samuelson
6. Solomon Huebner
4|Page
