CEBS GBA Exam 1 Question with complete solution 2023

CEBS GBA Exam 1 Question with complete solution 2023Broad view of Employee Benefits (Mod 1.1) Considers Employee Benefits to be virtually any form of compensation other than direct wages paid to Employees (Ex: WC, Unemployment, State DI, SS, Vacation, Holidays, 401K/Retirement, Employer share of Medical, Severance Pay, Child Care, etc..) Narrow view of Employee Benefits (Mod 1.1) Any type of plan sponsored or initiated by Employees and Employers and engaged in providing benefits that result from the employment relationship and that are not underwritten or paid directly by the government; (Ex: Benefits excluded include those legally mandated - WC, SS). Impact of Labor Unions on Employee Benefits (Mod 1.2) Through Collective Bargaining, Employee Benefit Plans have been impacted. In 1948 ruling states that the duty to bargain in good faith over wages also included insurance and fringes (pension). In WW Cross & Co, NLRB ruled wages included health and accident plan. What is the Taft-Hartley Act? (Mod 1.2) The Labor Management Relations Act of 1947 is a United States federal law that restricts the activities and power of labor unions. This set forth good-faith collective bargaining over wages, hours, terms of employment and benefits. 3 Examples of Tax Advantages of Employee Benefit Plans (Mod 1.2) 1: Employer Contributions are Tax Deductible 2: Employer Contributions are not considered income to Employees 3: Certain Retirement Benefits Accumulate Tax-Free until distributed. Examples of Questions that should be addressed when creating benefit objectives (Mod 1.3) Ex: What benefits should be provided? Who should be covered? Should Employees have options? How should plan be financed? How should plan be administered? How should plan be communicated to Employees?