Benefits Training Day 6b
This quiz is a culmination of everything we have covered in the course so far-
Benefits Pre-setup
Medical, Dental Vision
FSA/HSA/HRA
STD/LTD
Basic Life/ Voluntary Life
Deferred Comp
- 1.
You are building a medical plan. What happens if you do not use the correct Deduction Type when you build your deduction code?
- A.
Nothing. Any deduction code will work with your Medical Plan.
- B.
Your whole benefit plan is shot. Start over.
- C.
Your deduction codes will not appear on your Medical Plan.
- D.
You deduction codes will duplicate on your Medical Plan.
Correct Answer
C. Your deduction codes will not appear on your Medical Plan.Explanation
If you do not use the correct Deduction Type when building your deduction code, the deduction codes will not appear on your Medical Plan. This means that the deductions will not be applied or visible in the plan, potentially leading to incorrect calculations or missing deductions for the members. It is important to use the correct Deduction Type to ensure that the deduction codes are properly integrated into the Medical Plan.Rate this question:
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- 2.
If you do not create a Third Party for a benefit plan, which of the following might happen?
- A.
EBN will not work. They won’t be able to see the extract.
- B.
COBRA integration will fail.
- C.
You will not be able to send ACH or check payments to the Third Party.
- D.
All of the above.
Correct Answer
D. All of the above.Explanation
If you do not create a Third Party for a benefit plan, all of the mentioned consequences might happen. eBN will not work, meaning that users will not be able to see the extract. COBRA integration will fail, resulting in issues with managing COBRA benefits. Additionally, without a Third Party, you will not be able to send ACH or check payments to them, causing difficulties in making payments for the benefit plan. Therefore, all of the mentioned outcomes are possible if a Third Party is not created for a benefit plan.Rate this question:
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- 3.
What is the most difficult part of setting up a benefit plan?
- A.
Figuring out what Benefit Type to use.
- B.
Determining which Deduction code to use.
- C.
Deciding if it is Pre-tax or Post tax.
- D.
Gathering all the information you need to set it up.
Correct Answer
D. Gathering all the information you need to set it up.Explanation
The most difficult part of setting up a benefit plan is gathering all the information you need to set it up. This is because there are various factors and details that need to be considered, such as employee details, plan options, eligibility criteria, contribution amounts, and legal requirements. Gathering all this information can be time-consuming and challenging, as it requires coordination and communication with multiple stakeholders, including employees, HR departments, insurance providers, and legal advisors. Additionally, any missing or incorrect information can lead to errors or inefficiencies in the benefit plan, making it crucial to ensure all necessary information is collected accurately.Rate this question:
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- 4.
The Start and Stop Date fields on the Plans tab for all plans aside from HSA/FSAs must be no more than 365 days apart.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The Start and Stop Date fields on the Plans tab for all plans aside from HSA/FSAs can be more than 365 days apart.Rate this question:
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- 5.
The Start and Stop Date fields on the Rates tab on COBRA Eligible plans must be no more than 365 days apart.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The Start and Stop Date fields on the Rates tab on COBRA Eligible plans must be no more than 365 days apart. This means that the difference between the start and stop dates should not exceed one year. This requirement ensures that the COBRA coverage period remains within a reasonable timeframe and does not extend for an excessively long duration. By limiting the gap between the start and stop dates to 365 days, it helps to maintain the effectiveness and manageability of the COBRA Eligible plans.Rate this question:
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- 6.
The “Effective Dates Based On” field on the Plans tab is:
- A.
Used to determine when the new rates will appear on the payroll.
- B.
Difficult to determine for bi-weekly payrolls
- C.
Will change FSA and HSA amounts if the field is switched back and forth.
- D.
All of the above.
Correct Answer
D. All of the above.Explanation
The "Effective Dates Based On" field on the Plans tab is used to determine when the new rates will appear on the payroll. It is also difficult to determine for bi-weekly payrolls, as they have a different pay frequency compared to other payrolls. Additionally, switching the field back and forth will change the FSA and HSA amounts. Therefore, all of the given statements are correct.Rate this question:
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- 7.
Employees can elect (select all that are correct):
- A.
FSA Med & Dependent Care
- B.
HDHP, Limited FSA & HSA
- C.
FSA & HRA
- D.
FSA Dependent Care only
Correct Answer(s)
A. FSA Med & Dependent Care
B. HDHP, Limited FSA & HSA
D. FSA Dependent Care onlyExplanation
Employees have the option to choose multiple benefits from the given options. They can elect FSA Med & Dependent Care, HDHP, Limited FSA & HSA, and FSA Dependent Care only. This means that employees can choose to have both FSA Med & Dependent Care, HDHP, Limited FSA & HSA, and FSA Dependent Care only as their benefits.Rate this question:
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- 8.
Which is a true statement about Medical HRA’s?
- A.
HRA’s are employee funded
- B.
HRA’s are offered as a stand-alone plan
- C.
HRA’s are not COBRA eligible
- D.
HRA COBRA is to be offered 2 ways: Medical + HRA premium & Medical premium only
Correct Answer
D. HRA COBRA is to be offered 2 ways: Medical + HRA premium & Medical premium onlyExplanation
The correct answer states that HRA COBRA is to be offered in two ways: with both the Medical and HRA premium, or with only the Medical premium. This means that employees who have an HRA and are eligible for COBRA coverage can choose to continue their coverage by paying both the Medical and HRA premium, or they can opt to pay only the Medical premium. This suggests that HRA's are eligible for COBRA coverage and that they are not offered as a stand-alone plan.Rate this question:
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- 9.
An HRA is set up in benefits (in order to facilitate COBRA) and is setup like a(n):
- A.
FSA
- B.
HSA
- C.
Medical Plan
- D.
401k Plan
Correct Answer
C. Medical PlanExplanation
An HRA (Health Reimbursement Arrangement) is set up in benefits like a Medical Plan. This means that it functions similarly to a medical plan in terms of facilitating COBRA (Consolidated Omnibus Budget Reconciliation Act) coverage. An HRA allows employees to be reimbursed for eligible medical expenses, just like a medical plan would. It is a benefit that employers can offer to help employees cover their healthcare costs.Rate this question:
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- 10.
You should always include a Stop Date on the Plans Tab 365 days from the Start Date on the FSA and H.S.A. plans.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Including a Stop Date on the Plans Tab 365 days from the Start Date on the FSA and H.S.A. plans is important because it ensures that the plans have a defined duration and will automatically end after one year. This helps in managing and tracking the plans effectively, as it provides clarity on when the plans will expire and need to be renewed or terminated. Without a Stop Date, it would be difficult to determine the duration of the plans and could lead to confusion or unintentional continuation of the plans beyond their intended timeframe.Rate this question:
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- 11.
The difference between calculating on Covered Benefit vs. Straight Salary is:
- A.
You do not use a rate multiplier with the Covered Benefit calculation.
- B.
The Straight Salary calculation does not reduce the monthly amount by the Covered Benefit percentage.
- C.
None. There is no difference.
- D.
Simple. Decide yourself which way it should be calculated.
Correct Answer
B. The Straight Salary calculation does not reduce the monthly amount by the Covered Benefit percentage.Explanation
The correct answer is that the Straight Salary calculation does not reduce the monthly amount by the Covered Benefit percentage. This means that when calculating the Straight Salary, the monthly amount remains the same regardless of the Covered Benefit percentage. On the other hand, when calculating the Covered Benefit, a rate multiplier is used to adjust the monthly amount based on the Covered Benefit percentage. Therefore, the difference lies in how the monthly amount is affected by the Covered Benefit percentage in each calculation method.Rate this question:
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- 12.
- You must use the algebraic formula to increase the max coverage amount for a disability plan if, and only if:
- A.
The plan is calculated on straight salary.
- B.
The stated max is below $5,000.00 for LTD and $500.00 for STD.
- C.
The client is using eBN services.
- D.
The max coverage is not provided to you.
Correct Answer
A. The plan is calculated on straight salary.Explanation
The correct answer is that the plan is calculated on straight salary. This means that the disability plan coverage is based solely on the employee's salary, without any additional factors or calculations. This implies that the coverage amount can be increased by using the algebraic formula, as there are no other limitations or restrictions mentioned in the question.Rate this question:
- 13.
Group Term Life is what iSolved uses to refer to:
- A.
Taxable benefit on any amount of Basic Life insurance above 50k.
- B.
Any company paid life insurance.
- C.
The EEs in a group or class.
- D.
None of the above.
Correct Answer
A. Taxable benefit on any amount of Basic Life insurance above 50k.Explanation
Group Term Life is the term used by iSolved to describe the taxable benefit on any amount of Basic Life insurance above 50k. This means that if an employee has Basic Life insurance coverage that exceeds 50k, the additional amount will be considered a taxable benefit. The other options mentioned, such as company-paid life insurance and the employees in a group or class, are not specifically referred to as Group Term Life by iSolved.Rate this question:
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- 14.
If a bi-weekly customer only wants to run GTL on the 1st and 2nd payrolls of the month, you would change the Schedule Frequency on the earnings code.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The statement is false because if a bi-weekly customer only wants to run GTL on the 1st and 2nd payrolls of the month, you would not change the Schedule Frequency on the earnings code. The correct action would be to set up a specific rule or condition in the payroll system that applies the GTL earnings code only to the 1st and 2nd payrolls of the month for the bi-weekly customer.Rate this question:
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- 15.
If you want the EE to be a Primary beneficiary on the SP Voluntary Life Plan, you must list him/her as a contact on his/her own account with the relationship set as other.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
To ensure that the EE (employee) is a primary beneficiary on the SP Voluntary Life Plan, it is necessary to list him/her as a contact on his/her own account and set the relationship as "other". This implies that the employee must have a separate account where he/she is listed as a contact and not under any specific relationship category such as spouse or child. By doing so, the employee can be designated as the primary beneficiary on the plan.Rate this question:
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- 16.
- Auto-Enroll (to add a blank enrollment record on the EE level) is used mostly with the “shell” setup on deferred comp plans because:
- A.
Forced percentage enrollments need it.
- B.
Eligible Wage Plan matches need it.
- C.
A blank enrollment record is needed to make the straight deductions work.
- D.
All of the above.
Correct Answer
D. All of the above.Explanation
Auto-Enroll is used with the "shell" setup on deferred comp plans because forced percentage enrollments and eligible wage plan matches require it. Additionally, a blank enrollment record is needed to make the straight deductions work. Therefore, all of the given options are correct reasons for using Auto-Enroll in this scenario.Rate this question:
- 17.
For Deferred Comp plans, you can easily setup an eligibility filter using “Normal Hours” under the EE Payroll section to determine if an EE meets the eligibility requirement of having worked 1000 hours.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The given statement is false. Deferred Comp plans cannot be easily set up with an eligibility filter using "Normal Hours" under the EE Payroll section to determine if an employee meets the requirement of having worked 1000 hours. There may be other criteria or calculations involved in determining eligibility for Deferred Comp plans, such as years of service or specific employment agreements.Rate this question:
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- 18.
Which of the following is false regarding Deferred Comp plan setup?
- A.
You must use a payment option of ACH Payment or Combined Check so the funds from all EEs will go together in a lump sum.
- B.
There is a concern with using the third party payee for a Deferred Comp plan that the funds will get to the carrier before the data and they will be rejected because the carrier does not know how to disburse them.
- C.
There is no pre-note ability with Third Party ACH payment, so you have to make sure you get the account number correct the first time.
- D.
When you put the Third Party in the Provider field, it will send the funds to the Deferred Comp carrier.
Correct Answer
D. When you put the Third Party in the Provider field, it will send the funds to the Deferred Comp carrier.Explanation
The statement "When you put the Third Party in the Provider field, it will send the funds to the Deferred Comp carrier" is false. The Third Party in the Provider field does not send the funds to the Deferred Comp carrier.Rate this question:
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- 19.
Multiple filters on a single Eligibility Rule create(s):
- A.
EE must meet each and every filter criteria to be eligible.
- B.
An “Or” Statement. EE needs only qualify with one filter to be eligible.
- C.
Havoc. Do not do that.
- D.
Nothing. You cannot put filters on an Eligibility Rule.
Correct Answer
A. EE must meet each and every filter criteria to be eligible.Explanation
The correct answer is that multiple filters on a single Eligibility Rule create the requirement for the employee (EE) to meet each and every filter criteria in order to be eligible. This means that the employee must satisfy all the specified conditions in order to be considered eligible.Rate this question:
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- 20.
If I need to know the amount of time an employee must wait before he/she is eligible for a benefit, I will ask the customer
- A.
What is the Probationary Period associated with this benefit?
- B.
What are your Eligibility Rules?
- C.
What classes do you have for this benefit?
- D.
What is the EE’s hire date?
Correct Answer
A. What is the Probationary Period associated with this benefit?Explanation
The correct answer is "What is the Probationary Period associated with this benefit?" because the probationary period is the specific amount of time an employee must wait before becoming eligible for certain benefits. By asking this question, the customer can determine when the employee will become eligible and provide the necessary information to the employee.Rate this question:
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- 21.
Please choose the incorrect statement about disability plans:
- A.
Can be chosen in increments of coverage.
- B.
They are usually based on salary.
- C.
Disability plans can be age banded or flat rates.
- D.
Must always be 100% ER paid.
Correct Answer
D. Must always be 100% ER paid.Explanation
The statement "Must always be 100% ER paid" is incorrect. Disability plans can be funded by both the employer and the employee, depending on the specific plan and the agreement between the two parties. It is not necessary for the employer to pay the entire cost of the disability plan.Rate this question:
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- 22.
Although you might be tempted to leave fields blank, you shouldn’t because:
- A.
The client might decide to use eBN or COBRA someday.
- B.
These blank columns will show nothing in a report if pulled.
- C.
Some things won’t calculate if you leave them blank.
- D.
All of the above.
Correct Answer
D. All of the above.Explanation
Leaving fields blank can have several negative consequences. Firstly, the client might decide to use eBN or COBRA in the future, and if the fields are left blank, it may cause issues or delays in implementing these systems. Additionally, if blank columns are included in a report, they will not provide any useful information, potentially rendering the report incomplete or less informative. Lastly, certain calculations may not be possible if required fields are left blank, leading to inaccurate or incomplete results. Therefore, it is important to fill in all fields to avoid these potential problems.Rate this question:
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- 23.
For Life plans, the Underwriting section applies to New Hires and the Guaranteed issue section applies to Open Enrollment.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The explanation for the given correct answer is that in Life plans, the Underwriting section is applicable to New Hires, which means that new employees who join the company need to go through the underwriting process to determine their eligibility and premium rates. On the other hand, the Guaranteed issue section applies to Open Enrollment, which means that during the open enrollment period, employees can enroll in the Life plan without having to go through the underwriting process. Therefore, the statement that the Underwriting section applies to New Hires and the Guaranteed issue section applies to Open Enrollment is true.Rate this question:
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- 24.
You need to create a special coverage code for LTD and STD plans.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
You do not need to create a special coverage code for LTD and STD plans.Rate this question:
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- 25.
Life plans with a coverage code that contains dependents cannot be set up in which of the following ways.
- A.
EE Tobacco Use, EE Gender and EE Age
- B.
Dependent Tobacco Use, EE Gender and Dependent Age
- C.
EE Tobacco Use and Dependent Age
- D.
EE Tobacco Use, Dependent Tobacco Use and Age
Correct Answer
D. EE Tobacco Use, Dependent Tobacco Use and Age -
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Current Version
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Mar 20, 2023Quiz Edited by
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Dec 15, 2014Quiz Created by
Joan Olejniczak
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