CEBS GBA 1 - Employee Benefits: The Environment Questions & Answers 100% Correct!!
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CEBS GBA 1 - Employee Benefits:
Institution
CEBS GBA 1 - Employee Benefits:
Employee Benefits - ANSWERAll forms of financial returns and tangible services and benefits employees receive as part of an employment relationship
Broad View of Employee Benefits - ANSWEREmployee benefits are virtually any form of compensation other than direct wages
What benefits are includ...
CEBS GBA 1 - Employee Benefits: The
Environment Questions & Answers 100%
Correct!!
Employee Benefits - ANSWERAll forms of financial returns and tangible services and benefits
employees receive as part of an employment relationship
Broad View of Employee Benefits - ANSWEREmployee benefits are virtually any form of
compensation other than direct wages
What benefits are included in the broad view of employee benefits? - ANSWER1. Employers' share of
legally required payments (Social Security, Medicare, unemployment insurance, and workers' comp
benefits)
2. Payments for time not worked (e.g., paid rest periods, paid sick leave, paid vacations, holidays,
parental leave, etc.)
3. Employer's share of medical and medically related payments.
4. Employers' share of retirement and savings plan payments.
5. Miscellaneous benefit payments (including employee discounts, severance pay, educational
expenditures, and child care, among others).
Narrow View of Employee Benefits - ANSWERAny type of plan sponsored or initiated unilaterally or
jointly by employers and employees and engaged in providing benefits that result from the
employment relationship and are not underwritten or paid directly by the government
Tripod of Economic Security - ANSWERGovernmental benefit programs, benefits supplied to
employees by their employers through the employment relationship, and benefits provided by an
individual for their own welfare and for the welfare of their dependents.
What benefits are typically excluded when the term employee benefits is viewed and defined in a
narrow sense? - ANSWERThose benefits that are legally mandated, notably employer funding for
Social Security and Medicare, unemployment insurance, and workers' compensation benefits.
, Explain the types of business or human resource-related reasons for firms establishing employee
benefit plans. - ANSWEREmployers want to attract and retain capable employees; having employee
benefit plans in place fosters this objective. In many cases, plans are necessary to retain current
employees. Employers hope tht good benefit plans will foster corporate efficiency, productivity, and
improved employee morale. Concerns for employees' welfare and social objectives are also reasons
for providing benefits.
What impact have labor unions historically had in employee benefits? - ANSWERNotably, the NLRB
ruled in 1948 in the Inland Steel case that the duty to bargain in good faith over wages also included
insurance and fringes such as pension benefits. Shortly thereafter, in the W.W. Cross & Co. case, NLRB
ruled that wages included a health and accident plan.
Explain the significance of the Taft-Hartley Act in employee benefit planning. - ANSWERThe Labor-
Management Relations Act, or Taft-Hartley Act, sets forth the framework for good-faith collective
bargaining over wages, hours, conditions, and terms of employment and employee benefits. The act,
along with the Internal Revenue Code, established the distinction between retirement benefits and
welfare benefits. It also provides the regulatory framework for administration of these benefits in a
collective bargaining agreement. It is the legislative basis on which jointly trusteed benefit plans are
founded.
Summarize three major federal tax advantages associated with employee benefit plans. - ANSWER1.
Most contributions to employee benefit plans by employers are deductible as long as they are
reasonable business expenses.
2. Within certain limits, these employer contributions are generally not considered income to
employees.
3. In certain types of retirement and capital accumulation plans, benefits accumulate tax-free to the
employee until distributed.
Why is the employee benefits mechanism an effective and efficient way of providing insurance
coverage? - ANSWEREmployment-based insurance is convenient for employees. They don't need to
search for individual coverage, and it is often less expensive. Providers and suppliers find it more
convenient and simpler to communicate and market employee benefits through an employer.
What are some other factors that have enhanced the appeal of employee benefits? - ANSWERPrice
controls imposed during WWII and the Korean War froze wage increases but allowed additions or
enhancements to certain employee benefits. The idea that the government might mandate certain
benefits in the absence of private employer action served as "moral suasion" to spawn private
employer action. Such discussion surrounds some of the provisions of the ACA and its
encouragement for private employers to provide health care benefits. Equally important are
legislative and regulatory measures allowing employers to integrate private plans with governmental
programs, thus building comprehensive benefit plans through a public/private partnership.
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