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Quizzes > Quizzes for Business > Human Resources

Take the Employee Benefits Knowledge Quiz

Gauge your benefits expertise in this quiz

Difficulty: Moderate
Questions: 20
Learning OutcomesStudy Material
Colorful paper art depicting a trivia quiz on employee benefits knowledge

Ready to test your employee benefits knowledge and sharpen your benefits awareness? This interactive quiz offers 15 multiple-choice questions to challenge HR professionals, managers, and team members alike. Feel free to customize this assessment in our editor to match your training needs. Explore the Employee Benefits Awareness Quiz for a broader challenge or compare with the Employee Benefits Knowledge Test. For more engaging content, browse other quizzes to expand your learning journey.

Which of the following is considered a retirement benefit?
Group term life insurance
Paid time off
Flexible spending account
401(k) plan
A 401(k) plan is designed to help employees save for retirement, classifying it as a retirement benefit. Other options relate to insurance or flexible spending, not retirement savings.
Which of the following is a purpose of offering paid time off programs?
Increase compliance costs
Reduce employee turnover
Limit employee autonomy
Decrease employee engagement
Paid time off helps employees balance work and personal needs, which improves satisfaction and reduces turnover. It does not inherently increase costs or limit autonomy in a beneficial way.
What is a health insurance premium?
The maximum out-of-pocket cost for the year
The amount paid when receiving care at the doctor's office
The amount the insurer pays for claims
The amount an employee pays to maintain coverage
A premium is the recurring payment an employee (or employer) makes to keep the health insurance policy active. Copays, deductibles, and out-of-pocket maximums refer to cost-sharing when services are used.
Which of the following is categorized as a welfare benefit?
401(k) plan
Stock options
Paid vacation
Dental insurance
Welfare benefits typically include health-related and insurance benefits such as dental coverage. Retirement plans, paid leave, and equity compensation fall into different benefit categories.
Which type of benefit plan allows employees to set aside pre-tax dollars for childcare expenses?
401(k) retirement plan
Health Savings Account (HSA)
Roth IRA
Dependent Care Flexible Spending Account (FSA)
A Dependent Care FSA lets employees use pre-tax contributions for eligible childcare costs. HSAs are for medical expenses, 401(k) plans are retirement savings, and Roth IRAs use after-tax dollars.
Under the Affordable Care Act, which weekly hour threshold defines an employee as full-time for eligibility in employer-sponsored group health plans?
25 hours per week
20 hours per week
40 hours per week
30 hours per week
The ACA defines a full-time employee as one working at least 30 hours per week for health plan eligibility. Other thresholds do not meet the statutory definition.
Which common eligibility requirement must employees typically meet before participating in a 401(k) plan?
Age 21 and one year of service
No age or service requirements
Age 25 and two years of service
Age 18 with no service requirement
Most employers require employees to be at least 21 years old and complete one year of service before joining a 401(k) plan. Other options exceed or understate common plan rules.
Which payroll deduction reduces an employee's taxable income by lowering gross wages subject to income tax?
Traditional 401(k) contributions
Wage garnishment for child support
Roth 401(k) contributions
Post-tax health insurance premium
Traditional 401(k) contributions are made pre-tax, reducing taxable gross wages. Roth contributions are after-tax, and the other deductions do not reduce income tax liability in the same way.
When analyzing health plan cost-sharing, what term describes the percentage of covered expenses an insured pays after meeting the deductible?
Coinsurance
Co-pay
Premium
Out-of-pocket maximum
Coinsurance is the percentage of costs the insured pays after meeting the deductible. A copay is a fixed fee per service, premiums are ongoing payments, and out-of-pocket maximum caps total spending.
Under ERISA, within how many days must a plan administrator furnish a Summary Plan Description to a newly eligible participant?
90 days
30 days
210 days
Upon request only
ERISA requires that a Summary Plan Description be provided to new participants within 90 days of becoming eligible. The 210-day rule pertains to plan establishment, not individual eligibility.
Which right is guaranteed to eligible employees under the Family and Medical Leave Act (FMLA)?
Up to 12 weeks of unpaid leave
Six months of guaranteed paid leave
Paid parental bonus
Continuation of full salary during leave
The FMLA grants eligible employees up to 12 weeks of unpaid, job-protected leave. It does not require employers to pay full salary or provide additional bonuses during that period.
To evaluate the impact of an employee wellness program on company expenses, which key metric is most directly relevant?
Number of policy violations
Amount spent on office supplies
Reduction in sick days taken
Increase in training hours
Wellness programs aim to improve health outcomes and reduce absenteeism, making the reduction in sick days the most direct cost metric. Other metrics are less connected to wellness outcomes.
When comparing a defined benefit pension plan to a defined contribution 401(k) plan, which factor primarily distinguishes them for employees?
Investment risk borne by employee versus employer
Annual salary deferral limits
Cost of health insurance premiums
Length of vesting schedule
Defined benefit plans place investment and longevity risk on the employer, while defined contribution plans shift investment risk to the employee. Vesting and deferral limits are secondary considerations.
Under COBRA regulations, what is the maximum election period during which a qualified beneficiary can opt for continuation coverage after losing group health coverage?
45 days
60 days
30 days
90 days
COBRA provides a 60-day election period for qualified beneficiaries to choose continuation coverage after a qualifying event. Other timeframes do not meet the statutory requirement.
Which of the following communication methods is often most effective for increasing employee engagement with benefits information?
Mass email bulletins
Interactive short video modules
Long technical handbook
One-time all-hands meeting
Interactive short videos break down complex information into digestible segments and often improve retention and engagement. Lengthy manuals and one-off meetings have lower engagement rates.
If an employee expects $10,000 in annual medical expenses, which of these two health plan options yields a lower total cost?
Both cost the same
Plan A (Premium $200/mo, $1,500 deductible, 20% coinsurance)
It depends on the provider network
Plan B (Premium $300/mo, $500 deductible, 30% coinsurance)
Plan A total cost: $2,400 in premiums + $1,500 deductible + 20% of $8,500 ($1,700) = $5,600. Plan B totals $3,600 + $500 + 30% of $9,500 ($2,850) = $6,950. Plan A is cheaper.
Under HIPAA nondiscrimination rules, which type of employer-sponsored benefit program is allowed to vary benefits based on individual health factors?
Health Savings Account (HSA)
Cafeteria plan
Group health plan
COBRA continuation coverage
HIPAA nondiscrimination rules apply to group health plans but exempt cafeteria plans, allowing them to offer different benefit options based on health factors. COBRA and HSAs follow different rules.
For benchmarking benefits across industries, which data source is generally considered least reliable due to bias and anecdotal nature?
Bureau of Labor Statistics data
Large industry association surveys
Third-party published surveys
Company exit interviews
Company exit interviews are anecdotal and subject to individual bias, making them less reliable for benchmarking. Published surveys and official data offer broader, more objective insights.
Employer contributions that exceed annual HSA limits are subject to which penalty?
Ordinary income tax only
No penalty if corrected within the year
IRS excise tax
Additional FICA tax
Excess HSA contributions trigger a 6% IRS excise tax on the over-contribution amount each year until corrected. FICA and ordinary income tax do not apply in the same way.
When a material modification to an ERISA-covered plan occurs, which document must be furnished to participants in addition to the original SPD?
Summary Annual Report (SAR)
Annual financial report
Summary of Material Modifications (SMM)
COBRA election notice
ERISA requires a Summary of Material Modifications be provided to participants when significant plan changes occur. Other documents serve different reporting or notice purposes.
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Learning Outcomes

  1. Identify major categories of employee benefits and their purposes.
  2. Analyze eligibility requirements for various benefit plans.
  3. Evaluate the financial and tax impacts of different benefits.
  4. Apply best practices to compare benefit offerings effectively.
  5. Demonstrate understanding of compliance and regulatory guidelines.
  6. Master strategies to communicate benefits information clearly.

Cheat Sheet

  1. Major categories of employee benefits - Dive into health insurance, retirement plans, and paid time off to see how each perk elevates well-being and job satisfaction. Understanding these foundations helps you spot how companies care for their teams. Explore accounting impacts
  2. Eligibility requirements for benefit plans - Learn the rules around who qualifies for which benefits by looking at employment status, tenure, and hours worked. This knowledge ensures everyone gets their fair share of perks. Read about compliance
  3. Financial and tax impacts of benefits - Unpack how employer contributions can change taxable income and affect company expenses. Mastering this makes you a financial whiz in the benefits arena. Learn the details
  4. Comparing benefit offerings - Use best practices to weigh coverage options, costs, and employee needs for smarter decisions. A clear comparison chart can turn overwhelming choices into straightforward wins! See communication tips
  5. Compliance and regulatory guidelines - Get to know laws like the ACA and ERISA so you can keep benefit plans on the right side of the law. Staying compliant protects both the company and the team. Review legal standards
  6. Clear benefits communication - Master strategies that use simple language and avoid jargon to make benefits crystal clear. Engaging visuals and FAQs can turn snooze-fest lectures into fun learning sessions. Check out communication hacks
  7. Record-keeping and documentation - Discover why accurate records are your audit's best friend and how organized files keep everyone happy. Good documentation practices also speed up any future audits or reviews. View the disclosure guide
  8. Fiduciary responsibilities - Understand the duty to act in plan participants' best interests and avoid conflicts of interest. Grasping this role makes you a trustworthy guardian of benefits. Learn fiduciary rules
  9. Impact on financial statements - Explore how benefit liabilities and expenses show up on balance sheets and income statements. This insight helps you read financials like a pro. Discover financial reporting
  10. Engaging employees in benefits education - Brainstorm methods like webinars, workshops, and interactive quizzes to boost understanding and utilization. When people are excited to learn, they make smarter benefit choices. Explore engagement ideas
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