Benefits

Description: This quiz will test your knowledge on various types of benefits provided by employers to their employees.
Number of Questions: 15
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Tags: employment law benefits compensation
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Which of the following is NOT a common type of employee benefit?

  1. Health insurance

  2. Paid time off

  3. Retirement savings plan

  4. Free lunch


Correct Option: D
Explanation:

While free lunch may be provided by some employers as a perk, it is not a common type of employee benefit.

What is the purpose of a retirement savings plan?

  1. To provide employees with a source of income after they retire

  2. To help employees save for a down payment on a house

  3. To cover employees' medical expenses

  4. To pay for employees' education


Correct Option: A
Explanation:

Retirement savings plans are designed to help employees accumulate funds that they can use to support themselves financially during retirement.

Which of the following is NOT a type of paid time off?

  1. Vacation

  2. Sick leave

  3. Bereavement leave

  4. Jury duty leave


Correct Option: D
Explanation:

Jury duty leave is not a type of paid time off, as it is a legal obligation for citizens to serve on juries when called upon.

What is the purpose of health insurance?

  1. To cover the cost of medical expenses

  2. To provide employees with a source of income if they become disabled

  3. To help employees save for retirement

  4. To pay for employees' education


Correct Option: A
Explanation:

Health insurance is designed to help employees pay for the cost of medical expenses, such as doctor visits, hospital stays, and prescription drugs.

Which of the following is NOT a type of retirement savings plan?

  1. 401(k) plan

  2. Individual Retirement Account (IRA)

  3. Roth IRA

  4. Pension plan


Correct Option: D
Explanation:

Pension plans are not retirement savings plans, as they are employer-sponsored retirement plans that provide employees with a fixed income stream during retirement.

What is the purpose of a flexible spending account (FSA)?

  1. To cover the cost of medical expenses

  2. To help employees save for retirement

  3. To pay for employees' education

  4. To cover the cost of dependent care expenses


Correct Option: A
Explanation:

FSAs are designed to help employees pay for the cost of medical expenses, such as doctor visits, hospital stays, and prescription drugs.

Which of the following is NOT a type of employee benefit that is taxable?

  1. Health insurance premiums

  2. 401(k) contributions

  3. Social Security taxes

  4. Medicare taxes


Correct Option: B
Explanation:

401(k) contributions are not taxable, as they are made with pre-tax dollars.

What is the purpose of a health savings account (HSA)?

  1. To cover the cost of medical expenses

  2. To help employees save for retirement

  3. To pay for employees' education

  4. To cover the cost of dependent care expenses


Correct Option: A
Explanation:

HSAs are designed to help employees pay for the cost of medical expenses, such as doctor visits, hospital stays, and prescription drugs.

Which of the following is NOT a type of employee benefit that is provided by the government?

  1. Social Security

  2. Medicare

  3. Unemployment insurance

  4. Workers' compensation


Correct Option: D
Explanation:

Workers' compensation is not a government-provided employee benefit, as it is a state-mandated program that provides benefits to employees who are injured or become ill on the job.

What is the purpose of a dependent care FSA?

  1. To cover the cost of medical expenses

  2. To help employees save for retirement

  3. To pay for employees' education

  4. To cover the cost of dependent care expenses


Correct Option: D
Explanation:

Dependent care FSAs are designed to help employees pay for the cost of dependent care expenses, such as child care, elder care, and adult day care.

Which of the following is NOT a type of employee benefit that is provided by employers?

  1. Health insurance

  2. Paid time off

  3. Retirement savings plan

  4. Stock options


Correct Option: D
Explanation:

Stock options are not a type of employee benefit that is provided by employers, as they are a type of compensation that is granted to employees in the form of the right to purchase shares of the company's stock at a predetermined price.

What is the purpose of a cafeteria plan?

  1. To allow employees to choose from a variety of benefits

  2. To help employees save for retirement

  3. To pay for employees' education

  4. To cover the cost of dependent care expenses


Correct Option: A
Explanation:

Cafeteria plans allow employees to choose from a variety of benefits, such as health insurance, dental insurance, vision insurance, and paid time off.

Which of the following is NOT a type of employee benefit that is provided by unions?

  1. Health insurance

  2. Paid time off

  3. Retirement savings plan

  4. Job security


Correct Option: D
Explanation:

Job security is not a type of employee benefit that is provided by unions, as it is a condition of employment that is negotiated between the union and the employer.

What is the purpose of a 401(k) plan?

  1. To cover the cost of medical expenses

  2. To help employees save for retirement

  3. To pay for employees' education

  4. To cover the cost of dependent care expenses


Correct Option: B
Explanation:

401(k) plans are designed to help employees save for retirement by allowing them to contribute a portion of their salary to a tax-advantaged account.

Which of the following is NOT a type of employee benefit that is provided by the government?

  1. Social Security

  2. Medicare

  3. Unemployment insurance

  4. Workers' compensation


Correct Option: D
Explanation:

Workers' compensation is not a government-provided employee benefit, as it is a state-mandated program that provides benefits to employees who are injured or become ill on the job.

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