Social Security and Medicare: A Survey of Benefits. Course #5485E/QAS5485E Exam Packet

Transcription

1 Social Security and Medicare: A Survey of Benefits Course #5485E/QAS5485E Exam Packet

2 SOCIAL SECURITY AND MEDICARE: A SURVEY OF BENEFITS (COURSE #5485E/QAS5485E) COURSE DESCRIPTION Social security is big business. It is the major source of income for most of the nation s elderly population, and provides benefits to family members and disabled workers. This course covers the benefits provided by social security, the taxation of social security benefits, disability and SSI benefits, survivor benefits, and the appeals process. In addition, information is provided regarding the types of benefits offered by Medicare and the various options for paying for long-term health care. Uses the materials Social Security and Medicare: A Survey of Benefits. No prerequisites. Course level: Basic. Course #5485E/QAS5485E - 8 CPE hours. LEARNING ASSIGNMENTS and OBJECTIVES As a result of studying each assignment, you should be able to meet the objectives listed below each individual assignment. ASSIGNMENT SUBJECT 1 Introduction and Overview Social Security Retirement Benefits Select Issues Affecting Social Security Benefits Study the course materials from pages 1-1 to 3-11 Complete the review questions at the end of each chapter Answer the final exam questions 1 to 17 Objectives: To describe the size and benefits offered by the social security and Medicare system To discuss the social security benefits available to individuals and family members To explain specific issues that affect the benefits, including the continuation of work, the notch provision, and government employees ASSIGNMENT SUBJECT 2 Self-Employment Tax and Social Security Taxation of Social Security Benefits Study the course materials from pages 4-1 to 5-4 Complete the review questions at the end of each chapter Answer the final exam questions 18 to 22 Objectives: To explain the application of the self-employment tax and social security To identify the basic rules regarding the taxation of social security benefits Exam Page -1

3 ASSIGNMENT SUBJECT 3 Disability and SSI Benefits Survivor Benefits The Appeals Process Study the course materials from pages 6-1 to 8-5 Complete the review questions and the end of each chapter Answer the final exam questions 23 to 32 Objectives: To discuss the disability and SSI benefits available for individuals and children with disabilities To identify who is eligible for survivor benefits To describe how to file an appeal of a determination made by the Social Security Administration (SSA) ASSIGNMENT SUBJECT 4 An Overview of Medicare Medicare Plan Choices Paying for Long-Term Health Care Study the course materials from pages 9-1 to Complete the review questions at the end of each chapter Answer the final exam questions 33 to 40 Objectives: To identify the types of Medicare benefits that are available To discuss the various optional Medicare health plans To explain the different methods for paying for long-term health care ASSIGNMENT 5 Complete the Answer Sheet and Course Evaluation and mail to PES for credit NOTICE This course and test have been adapted from materials and information contained in the materials entitled Social Security and Medicare: A Survey of Benefits and any supplemental material provided. This course is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional advice and assumes no liability whatsoever in connection with its use. Since laws are constantly changing, and are subject to differing interpretations, we urge you to do additional research and consult appropriate experts before relying on the information contained in this course to render professional advice. Professional Education Services, LP 2010 Program publication date 3/25/10 Exam Page -2

4 SOCIAL SECURITY AND MEDICARE: A SURVEY OF BENEFITS (COURSE #5485E/QAS5485E) EXAM OUTLINE COURSE EXPIRATION DATE: Per AICPA and NASBA standards, this course must be completed within one year from the date of purchase. TEST FORMAT: The following final exam, consisting of 40 true/false and/or multiple choice questions, is based specifically on the material included in this course. The answer sheet must be completed and returned to PES for CPE certification. You will find the answer sheet at the back of this exam packet so that you may easily remove it and use it while taking your test. LICENSE RENEWAL INFORMATION: The Social Security and Medicare: A Survey of Benefits course (#5485E/QAS5485E) qualifies for 8 CPE hours. PROCESSING: Your exam will be graded promptly. You must score 70% or better to pass. When you pass, your certificate of completion will be mailed. If you do not pass, we will give you a courtesy call to inform you of this and then another answer sheet will be sent to you free of charge. GRADING OPTIONS: Please choose only one of the following. There is no additional charge for any of these grading options. Make sure to fill out your answer sheet completely prior to submitting it. ONLINE GRADING Visit our website at Login to your account (if you are a first-time user you must set up a new user account). Go to the MY CPE tab and click the My CPE Exams in Progress folder. If your exam is not already located in this folder, click Add Exam Previously Purchased and follow the instructions. MAIL Your exam will be graded and your certificate of completion mailed to you the same day we receive it. Your certificate will be dated according to the postmark date; therefore, you do not need to overnight your exam. Please mail your answer sheet to: Professional Education Services, LP 4208 Douglas Blvd., Ste 50 Granite Bay, CA FAX Your exam will be graded and you will be contacted either via phone or fax with your results within 4 business hours of receipt. A copy of your graded exam and certificate of completion will be mailed to you the same day we receive it. Your certificate will be dated according to the fax date. If you choose to fax your exam, please do not mail it. Your fax will serve as the original. Please refer to the attached answer sheet for further instructions on fax grading. Fax number (916) Thank you for using Professional Education Services. We appreciate your business!! Exam Page -3

5 SOCIAL SECURITY AND MEDICARE: A SURVEY OF BENEFITS (COURSE #5485E/QAS5485E) FINAL EXAM The following questions are either true or false and/or multiple choice. Please indicate your choice on the enclosed Answer Sheet. 1. Social security is financed primarily through a dedicated: a) sales tax b) property tax c) payroll tax d) income tax 2. Which of the following is not true regarding the payment of 2010 OASDI and Medicare taxes: a) the OASDI tax rate for 2010 is 6.2% for employees and employers each b) the maximum wage base for both OASDI and Medicare for 2010 is $106,800 c) the tax rate for Medicare is 2.9% for selfemployed persons d) the maximum an employee must contribute to OASDI in 2010 is $6, The main reason for social security s longrange financing problem is: a) demographics b) poor investing c) non-payment by individuals d) overpayment of benefits to individuals 4. Most people need credits to qualify for social security benefits. a) 10 b) 20 c) 40 d) Which of the following benefits are not financed by social security taxes: a) retirement b) disability c) survivors d) supplemental security income 6. Which of the following is true regarding social security credits: a) most people earn more credits than they need b) extra credits increase an individual s social security benefit c) the income an individual earns while working will not increase his or her benefit amount 7. An individual can begin receiving full social security retirement benefits as early as age Which of the following is true regarding social security benefits: a) if an individual s full retirement age is older than 65, he or she cannot take retirement benefits at 62 b) early retirement will give an individual about the same total social security benefits over his or her lifetime as waiting until full retirement age c) an individual who continues to work past his or her full retirement age will decrease his or her social security benefits 9. Social security benefits are generally paid by: a) cash b) check c) direct deposit d) grocery store voucher Exam Page -4

6 10. Which of the following is not true regarding a spouse s benefits: a) a spouse is entitled to receive one-half of the retired worker s full benefit once he or she reaches full retirement age b) if an individual is eligible for both his or her own retirement benefits and for benefits as a spouse, the SSA will always pay his or her own benefit first c) if the total benefits due to a spouse and children exceed the family benefit maximum, their benefits will be reduced proportionately d) the amount of benefits a divorced spouse gets impacts the amount of benefits a current spouse can receive 11. Social security benefits are based on earnings over most of a worker s lifetime. 12. Which of the following is true regarding the payment of SSA benefits while outside the United States: a) SSA considers a person to be outside the United States when he or she is anywhere other than the 50 states b) a person is considered to be outside the United States if he or she has been out of the U.S. for at least 30 days in a row c) once a person is considered outside the U.S., he or she must return and stay in the U.S. for at least 6 months to be eligible to receive his or her SSA payments 13. A worker can receive full retirement benefits from SSA and work at the same time: a) regardless of his or her age b) regardless of the annual amount he or she earns c) dependent on his or her age and the amount he or she earns d) none of the above; an individual cannot receive SSA retirement benefits if he or she has wage earnings 14. Which of the following is considered earnings when determining a recipient s earnings from work: a) interest b) wages when paid c) self-employment income when received d) vacation pay 15. Which of the following is true regarding the windfall elimination provision : a) it primarily affects people who earned a pension from working for a government agency and also worked at other jobs where he or she paid social security taxes long enough to qualify for retirement or disability benefits b) it results in calculating a higher social security benefit for those who receive a pension from work where social security taxes were not taken out of their pay c) the provision applies to retirement, disability, and survivor s benefits 16. Even if an individual does not receive cash benefits based on his or her spouse s work, he or she can still get Medicare at age 65 on his or her spouse s record if he or she is not eligible for it on his or her own record. 17. Which of the following is true regarding the use of a representative payee to collect benefits: a) the use of a representative payee is usually due to the recipient of the benefits need for help in managing money b) individuals and social service agencies can serve as payees c) the final selection of a representative payee is at the discretion of the SSA Exam Page -5

7 18. Which of the following is not true regarding selfemployment tax: a) an individual s net earnings from selfemployment are reduced by half of his or her total social security tax from selfemployment b) an individual cannot deduct his or her social security tax c) if an individual has wages as well as selfemployment earnings, the tax on his or her wages is paid first d) net earnings for social security are an individual s gross earnings from his or her trade or business less allowable deductions and depreciation 19. The SE tax rules apply: a) regardless of an individual s age b) even if the individual is already receiving social security or Medicare benefits c) both a and b above d) none of the above 20. An individual must carry on regular full-time business activities to be self-employed. 21. What is the maximum amount of social security benefits that can be taxed: a) none b) 15% c) 50% d) 85% 22. A social security beneficiary: 23. Which of the following is true regarding social security and Supplemental Security Income disability programs: a) they are both administered by the SSA b) Social Security Disability Insurance (SSDI) pays benefits based on financial need c) Supplemental Security Income disability is issued at a standard monthly rate, where each beneficiary receives the same amount 24. Which of the following is true regarding the social security s definition of disability: a) it is broad, and very inclusive b) it requires a person to be unable to do any kind of substantial gainful work c) it only requires a beneficiary not be able to find work due to the disability in his or her immediate area d) the disability must be expected to result in death 25. When a person receiving disability benefits reaches full retirement age, nothing will change except that, for social security purposes, his or her benefits will be called retirement benefits instead of disability benefits. 26. Which of the following does not affect an individual s social security disability benefits: a) civil service disability benefits b) military disability benefits c) private insurance benefits d) state temporary disability benefits a) is required to have federal income tax withheld from his or her benefits b) can choose to have federal income tax withheld from his or her benefits c) is required to pay estimated tax on any benefits received during the year d) never has to pay federal income tax on any benefits received Exam Page -6

8 27. Which of the following is true regarding Supplemental Security Income disability benefits for children: a) SSA considers the parent s income and assets in determining eligibility for SSI if the child is under 18 b) a child who was not eligible for SSI before his or her 18 th birthday because the parent s income or assets were too high cannot qualify for the same disability after he or she turns 18 c) the local social security office determines if the child meets the SSA s definition of disability d) once a child begins receiving SSI, the law requires that the payments continue without further review 28. The number of years an individual needs to work in order for his or her family to be eligible for social security survivor s benefits depends on the individual s age at death. 29. Which of the following is true regarding the application of survivor s benefits: a) survivor s benefits can be paid from the time an application is made and not from the time the worker died b) application can be made by telephone or at any social security office c) for individuals already receiving social security benefits as a wife or husband, the SSA will change their payments to survivor s benefits when their application is made 30. If an individual wants to make an appeal of an SSA determination, he or she must make his or her request in writing within from the date he or she receives the letter of determination from the SSA. a) 30 days b) 60 days c) 90 days d) 1 year 31. Which of the following is the first level of appeal: a) reconsideration b) hearing by an administrative law judge c) review by the Appeals Council d) federal court review 32. Which of the following is not true regarding using a representative in an appeals process: a) an individual can select an attorney or other qualified person to represent him or her b) an individual can have more than one representative c) an individual can appoint a firm or corporation as his or her representative d) the individual must notify the SSA in writing if he or she has chosen a representative 33. Medicare provides benefits to all older Americans. 34. Which of the following is true regarding Medicare Part A: a) Part A insurance is free for those who have paid Medicare taxes while they were working b) individuals who are already receiving social security will automatically receive Medicare Part A starting the first day of the month they turn age 65 c) Part A insurance provides coverage for hospice care for people with a terminal illness 35. The Department of Health and Human Services (HHS) annually sets rates for premiums, deductibles, and coinsurance amounts to be paid by Medicare beneficiaries. Exam Page -7

9 36. Which of the following is not true regarding Medicaid: a) each state establishes its own eligibility standards b) each state sets the rate of payment for services c) states of similar size or geographic proximity have similar policies for eligibility and services d) Medicaid does not provide medical assistance for all poor persons 40. A limit of the reverse mortgage method for paying for long-term care costs is that the individual must meet specific income and medical requirements to qualify. Congratulations you ve completed the exam! 37. Which of the following is true regarding medical plan choices: a) everyone with Medicare can join the Original Medicare Plan b) the Medicare Advantage Plans must cover at least the same benefits covered by Medicare Part A and Part B c) where an individual lives will determine which plans are available to him or her 38. A Medigap policy: a) should be purchased in lieu of Medicare b) is a health insurance policy sold by private insurance companies c) is free to individuals who qualify for Medicare Part A 39. Which of the following is not an opportunity of deferred annuities being used to pay for longterm care: a) the deferred annuity is tax-free b) an individual can use the money right away to pay for his or her long-term care needs c) it may be easier to qualify for a deferred annuity than for long-term care insurance d) if an individual does not use the entire longterm care annuity, he or she can leave something to his or her heirs Exam Page -8

10 SOCIAL SECURITY AND MEDICARE: A SURVEY OF BENEFITS #5485E/QAS5485E (8 CPE hours) ANSWER SHEET (3/10) Important Note: For certification, this answer sheet must be completed and submitted to PES for grading within one year from the date of purchase. Please use black ink and print for quicker processing thank you. Name (as it appears on your license) Address City State Zip Home Work Daytime Phone ( ) address (for online grading) License Number State Expiration Date CPA, CFP, EA (circle one) If course was ordered by another party, please indicate name here: GRADING OPTIONS Please choose only ONE of the following: ONLINE GRADING Visit our website at o Login to your account (if you are a first-time user, you must set up a new user account). o Go to the MY CPE tab and click the My CPE Exams in Progress folder. o If your exam is not already located in this folder, click Add Exam Previously Purchased and follow the instructions. Mail Mail your exam to: PES, 4208 Douglas Blvd., Ste 50, Granite Bay, CA Fax Fax your exam to (916) and choose one of the following options: Please: mail my results only or fax phone my results to: ( ) PLEASE INDICATE YOUR ANSWER BY FILLING IN THE APPROPRIATE CIRCLE A B C D A B C D 1. O O O O 21. O O O O 2. O O O O 22. O O O O 3. O O O O 23. O O O O 4. O O O O 24. O O O O 5. O O O O 25. O O O O 6. O O O O 26. O O O O 7. O O O O 27. O O O O 8. O O O O 28. O O O O 9. O O O O 29. O O O O 10. O O O O 30. O O O O 11. O O O O 31. O O O O 12. O O O O 32. O O O O 13. O O O O 33. O O O O 14. O O O O 34. O O O O 15. O O O O 35. O O O O 16. O O O O 36. O O O O 17. O O O O 37. O O O O 18. O O O O 38. O O O O 19. O O O O 39. O O O O 20. O O O O 40. O O O O Please complete the attached course evaluation your opinion is extremely valuable. Exam Page -9

11 Social Security and Medicare: A Survey of Benefits #5485E/QAS5485E - Course Evaluation Rate on a scale of 1-10 with 1 being poor and 10 being excellent. 1. The course met the course objectives described in the promotional material. 2. The course was up to date, held my interest, was timely, and effective. 3. The course materials were understandable, valuable, and suitable for a correspondence course. 4. The amount of advance knowledge and stated prerequisites were appropriate. 5. The completion time was appropriate for the number of credits allowed. 6. The course met my professional education needs. Please answer the following questions mark/rate any and all that may apply 1. How would you rate PES s order desk customer service 2. What can PES do to keep you as a valued customer? 3. Any other comments regarding this course or our company would be appreciated. 4. What other courses/subjects would you like to see PES offer in the future? Mail to: Professional Education Services, LP 4208 Douglas Blvd., Ste 50, Granite Bay, CA Exam Page -10