Rock the 2026 FPC Exam – Master Payroll Fundamentals with Confidence!

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What is the purpose of the Employee Benefits Security Administration (EBSA)?

To enforce tax compliance for employees

To regulate wage rates across industries

To protect employee benefits and their beneficiaries

The Employee Benefits Security Administration (EBSA) plays a critical role in ensuring that employees receive the benefits promised to them by their employers. This agency is primarily concerned with the protection of employee benefits and their beneficiaries, which includes health plans, retirement plans, and other welfare benefits. Its mission encompasses safeguarding the integrity of the employee benefits system and ensuring that employees are informed of their rights and the rules governing their benefits.

The EBSA enforces the Employee Retirement Income Security Act (ERISA), which sets standards for most voluntarily established pension and health plans in the private industry. By ensuring compliance with these regulations, the EBSA protects workers from potential abuses related to their benefits, thereby promoting financial security and stability for both employees and their families.

In contrast, options that focus on tax compliance, regulating wage rates, or managing unemployment insurance claims fall outside the EBSA's primary mission and functions. These areas are typically handled by different agencies or departments that focus specifically on tax administration, labor standards, or unemployment benefits, respectively.

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To manage unemployment insurance claims

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