Compensation and Benefits

Question 1

An employee benefit plan established or maintained by an employer or by an employee organization, that provides retirement income or defers income until the end of employment.

Answer 1

Pension Plan

Question 2

A fixed price that a health insurance plan establishes for different types of health services.

Answer 2

Copay

Question 3

A fixed dollar amount that an individual must pay toward medical expenses each plan year before their health insurance company will contribute.

Answer 3

Deductible

Question 4

The amount that an individual will pay after meeting their deductible. This value will be a percentage of the total cost of care.

Answer 4

Coinsurance

Question 5

The most you’d have to pay within a playing year for healthcare services. Includes the sum of copays, deductibles, and coinsurance payments for in-network care.

Answer 5

Out-of-Pocket Maximums

Question 6

Out-of-pocket maximums cover every healthcare cost; true or false?.

Answer 6

False

Question 7

What health care expenses are not covered by out-of-pocket maximums?

Answer 7

• Insurance premiums.
• Money spent on services not covered within your health insurance plan.
• Out-of-network services.
• Costs above the allowed amount for a service that a provider may charge.

Question 8

What is HR’s role in health insurance benefits?

Answer 8

Choosing the right benefits broker for your organization.

Question 9

A High Deductible Health Plan (HDHP) has lower monthly premiums, and higher out-of-pocket expenses; true or false.

Answer 9

True

Question 10

A health plan that’s beneficial for people that don’t have chronic health conditions, and don’t often visit their healthcare provider.

Answer 10

High Deductible Health Plan (HDHP)

Question 11

A health insurance plan that’s meant to be combined with a Health Savings Account (HSA).

Answer 11

High Deductible Health Plan (HDHP)

Question 12

High Deductible Health Plans (HDHP’s) completely cover many preventative care visits; true or false.

Answer 12

True

Question 13

A personal bank account that allows employees to set aside pre-tax dollars for qualified medical expenses. They must be paired with eligible High Deductible Health Plans (HDHP’s).

Answer 13

Health Savings Account (HSA)

Question 14

Health Savings Accounts (HSAs) are portable; true or false.

Answer 14

True

Question 15

The IRS sets a yearly total contribution limit to any individual HSA account; true or false

Answer 15

True

Question 16

Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) are both owned by the employee; true or false.

Answer 16

False. FSAs are owned by the employer.

Question 17

A form of benefit that employers offer to their employees to supplement the cost of commutes to and from work using pre- or post tax dollars.

Answer 17

Commuter Benefits.

Question 18

What are several examples of commuter benefits?

Answer 18

• Gas reimbursement.
• Parking accommodations.
• Parking validation.
• Public transit - trains/buses.
• Biking accomodations.

Question 19

Money allocated to commuter benefits are tax-free, meaning they aren’t subject to payroll taxes; true or false.

Answer 19

True

Question 20

Commuter benefits have the potential to impact employee retention, boost recruitment efforts, and improve the bottom line; true or false.

Answer 20

True

Question 21

Minimum wage can differ between federal, state, and county requirements; true or false

Answer 21

True

Question 22

If you live and work remotely for a company that isn’t based in the state you work, you are subject to the minimum wage laws of the state your company is based in; true or false

Answer 22

False. You’re subject to the minimum wage laws of the state you live and work in.

Question 23

Who is responsible for payroll tax errors in an outsourcing relationship?

Answer 23

The employer

Question 24

Who is responsible for deciding when an employee will receive their final paycheck?

Answer 24

The state they live and work in.

Question 25

Contracts with particular medical providers so that plan participants pay a lower price for the services of those providers.

Answer 25

Network

Question 26

The regular amount paid by an individual and/or their employer to keep their health coverage active.

Answer 26

Premium

Question 27

A change to an individual's circumstances, planned or unplanned, that allows them to make adjustments to their benefits outside the yearly open enrollment period.

Answer 27

Qualifying Life Event

Question 28

What are examples of Qualifying Life Events?

Answer 28

• Lay off • Fired • Organization shuts down • Marriage • Divorce • Birth or adoption of a child • Family death • Change of residence • Moving to or from a shelter or transitional housing

Question 29

Employee benefits can be modified outside of the annual open enrollment period; true or false.

Answer 29

False. Employee benefits can only be modified during an open enrollment period, or because of a qualifying Life event

Question 30

Account-based health plans that allow employers to better control healthcare costs by providing employees with defined, non-taxed reimbursements for qualified health insurance expenses.

Answer 30

Individual Coverage Health Reimbursement Arrangements (ICHRA)

Question 31

Individual Coverage Health Reimbursement Arrangements (ICHRAs) are only available to employees, and not self-employed individuals; true or fasle

Answer 31

True

Question 32

A savings account that allows employees to set aside pre-tax dollars for healthcare, dependent care, or "limited purpose" expenses, such as vision or dental care.

Answer 32

Flexible Spending Account (FSA)

Question 33

FSAs (Flexible Spending Accounts) roll over from year to year; true or false

Answer 33

False. FSAs don't roll over from year to year.

Question 34

Dependent care Flexible Spending Accounts (FSAs) can be used to pay for licensed day care, adult dependent care providers, and summer camps; true or false

Answer 34

True

Question 35

Short Term Disability plans typically cover around 60% - 70% of an employee's pre-disability income; true or false

Answer 35

True

Question 36

Long Term Disability plans typically cover around 50% - 60% of an employee's income; true or false

Answer 36

True

Question 37

Supplemental insurance or services that provide additional coverage beyond a primary health insurance plan.

Answer 37

Ancillary Benefits

Question 38

What are some examples of ancillary benefits?

Answer 38

• Life Insurance • Vision Insurance • Dental Insurance • Disability Insurance • Flexible Spending Accounts (FSA's) • Health Reimbursement Arrangements (HRA's)