HR Payroll & Benefits Software 2 — Questions and Answers
Question 1: What is benefits administration software used for?
- Tracking sales commissions
- Managing employee enrollment, eligibility, and costs for benefits programs (Correct answer)
- Scheduling performance reviews
- Processing expense reimbursements
Correct answer: Managing employee enrollment, eligibility, and costs for benefits programs
Benefits administration software automates the management of health insurance, retirement plans, and other employee benefits including enrollment and eligibility.
Question 2: What is 'open enrollment' in employee benefits management?
- A period when anyone can apply for a job at the company
- The annual window when employees can change their benefits elections (Correct answer)
- The process of enrolling new hires in orientation
- A period when benefits vendors can pitch new products
Correct answer: The annual window when employees can change their benefits elections
Open enrollment is a designated annual period when employees can enroll in, change, or waive benefits for the upcoming plan year.
Question 3: What is an FSA in the context of employee benefits software?
- Federal Software Application
- Flexible Spending Account for pre-tax health or dependent care expenses (Correct answer)
- Financial Services Agreement
- Full-Service Allowance
Correct answer: Flexible Spending Account for pre-tax health or dependent care expenses
An FSA (Flexible Spending Account) allows employees to set aside pre-tax dollars for eligible healthcare or dependent care expenses.
Question 4: What does COBRA stand for in U.S. benefits administration?
- Corporate Benefits Reorganization Act
- Consolidated Omnibus Budget Reconciliation Act (Correct answer)
- Combined Outreach Benefits Relief Administration
- Corporate Operations Benefits Reallocation Act
Correct answer: Consolidated Omnibus Budget Reconciliation Act
COBRA (Consolidated Omnibus Budget Reconciliation Act) requires employers to offer continued health coverage to employees who lose eligibility.
Question 5: Which feature in benefits software helps ensure benefits eligibility rules are followed?
- Time tracking
- Rules engine or eligibility configuration (Correct answer)
- Payroll tax calculator
- Applicant tracking
Correct answer: Rules engine or eligibility configuration
A rules engine in benefits software automatically enforces eligibility criteria such as employment status, hours worked, or waiting periods.
Question 6: What is an 'Evidence of Insurability' (EOI) requirement in benefits administration?
- Proof that a vendor is licensed to sell insurance
- Medical underwriting required for employees electing certain coverage levels (Correct answer)
- Documentation that an employee attended benefits training
- Verification that an employer offers health benefits
Correct answer: Medical underwriting required for employees electing certain coverage levels
EOI is a medical review process required when employees elect coverage amounts above guaranteed issue limits, typically for life or disability insurance.
HR Payroll & Benefits Software 2
What is benefits administration software used for?