1.Benefits account for approximately what percentage of an employee's total compensation?

A)30%

B)41%

C)65%

D)70%

2.The four social insurance programs established by the Social Security Act and its subsequent amendments are

A)OASDI, Medicaid, unemployment insurance, prescription drug coverage

B)OASDI, Medicare, unemployment insurance, Workers Compensation

C)OASDI, Medicare, Medicaid, Supplemental Security Income

D)OASDI, unemployment insurance, Medicare, Supplemental Security Income

3.Which one of the following is FALSE about Family and Medical Leave?

A)An employee of a covered employer who works at least 1,250 hours in the previous 12 months is eligible for FMLA leave

B)FMLA applies to employers with 50 or more workers within 75 miles

C)If spouses work for the same employer, they are both allowed to take 12 weeks of leave for the birth of a child (a total of 24 weeks of leave)

D)Group health insurance must be maintained during an FMLA leave whenever the insurance was provided before the leave was taken

4.In general, the cost of offering accommodation and enhancement benefits is greater than the savings in reduced employee absenteeism and tardiness. TRUE OR FALSE

5.The IRS permits employees to exclude as much as $5,250 per year of educational assistance from their gross taxable income, even if the courses are not work-related. T/F

6.In 2010, 74% of the time lost for occupational injuries was attributable to

A)Heart problems

B)Accidents on the job

C)Trunk (back and shoulder) problems and upper extremities injuries

D)Stress-related conditions

7.According to the Internal Revenue Code Section 125, nondiscrimination rules mean that the employer's benefits:

A)Cannot give preferential treatment to minority employees.

B)Must give preferential treatment to minority employees.

C)Cannot give preferential treatment to key employees and highly-compensated employees.

D)Cannot give preferential treatment to management employees.

8.Which of these is FALSE about a qualified Defined Contribution plan?

A)Participant contributions are not included in his or her federally taxable income.

B)Investment losses inside the plan reduce the participant's federally taxable income.

C)Investment gains inside the plan are not taxable to the participant.

D)Distributions to the participant are taxable in the year they are received.

9.When determining an employee's monthly benefit in a defined benefit plan, an employee's years of service are part of the formula if it uses a "flat benefit formula."