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Test your basic knowledge |
Human Resources Management: Compensation
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Study First
Subject
:
business-skills
Instructions:
Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can
study here
.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.
This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Describes a situation where an employee's pay is below the minimum of the range
CPI (Consumer Price Index)
Green-Circle Rates
Long-term disability(LTD) coverage
Exempt Employees
2. Pay adjustment given to employees regardless of their performance or company profitability; usually linked to inflation; also referred to as a standard percentage raise
EGTRRA (Economic Growth & Tax Relief Reconciliation Act)
Equal Work
COLA (Cost of Living Adjustment)
Red-circle rates
3. Pay that employees receive when they are called back for an extra shift in the same workday
Call-Back Pay
Paired-comparison method
Deductible
OBRA (omnibus budget reconciliation act)
4. Refers to a qualified - tax deferred retirement plan where the employer contributes a percentage of profits to employee accounts
CPI (Consumer Price Index)
Deferred Profit-Sharing Plan
Direct Compensation
Paid-time-off (PTO) bank
5. Process by which a retirement benefit becomes nonforfeitable
FASB (Financial Accounting Standards Board)
Vesting
Merit pay
Reporting pay
6. Type of health-care plan in which the employer assumes the risk of high costs and hires an insurance claims department to handle claims
Walsh-Healey Act
ASO (Administrative Services-Only health-care plan)
Defense Authorization Bill
Employees
7. Pay provided to employees who report for work as scheduled but then find that no work is available
Premium sharing
Qualifying event
EGTRRA (Economic Growth & Tax Relief Reconciliation Act)
Reporting pay
8. Pay systems in which employee characteristics - rather than the job - determine pay.
International social security agreements
Performance-based pay
Long-term disability(LTD) coverage
Retirement Equity Act (REA)
9. States that an ERISA plan fiduciary has legal and financial obligations not to take more risks when investing employee benefit program funds than a reasonably knowledgeable - prudent investor would under similar circumstances.
HCE(Highly compensated employee)
Mental Health Parity Act (MHPA)
Prudent person rule
Walsh-Healey Act
10. Amount advanced on future commissions
Excess Group-Term Life Insurance
Premium sharing
Cash Profit-Sharing Plans
Draw
11. Act that determined that older workers may not be discriminated against by performance-based pay systems
Savings Incentive Match Plan for employees (SIMPLE)
ADEA (Age Discrimination in Employment Act)
Revenue Act
Reasonable and customary
12. Amendment to the Portal to Portal Act; Clarifies that commuting time is not paid working time
Revenue Act
FSA's (Flexible Spending Accounts)
Employee Commuting Flexibility Act
QDROs(qualified domestic relations orders)
13. Act that extended the concept of prevailing wage to employers who manufacture or supply goods under government contracts and required time and a half
Walsh-Healey Act
FSA's (Flexible Spending Accounts)
MHPA (Mental Health Parity Act)
Factor Comparison Method
14. Pay that employees receive when they are on call but not actually working
Imputed income
On-call pay
Rabbi trust
SBJPA (Small Business Job Protection Act)
15. Payment paid to salespeople - usually calculated as a percentage of sales
Group-Term Life Insurance
LSI (lump-sum increase)
Comission
Salary
16. Point-factor job evaluation system developed by Hay Associates a large consulting organization - also known as the Hay Plan
Hay Plan
Guide Chart-Profile
Gross Earnings
Deductible
17. Clauses written into executive contracts that provide special payments ot key executives who might lose their position or be otherwise disadvantaged if another company took control of the organization through a merger or acquisition; also known as go
Fully Insured Health-Care Plan
External Equity
Parachutes
Long-term care insurance
18. An effort to make job evaluation more compatible with the de-layering of organizations by combining several salary grades or job classifications with narrow pay ranges into one band with a wider salary spread
457 Plans
Broadbanding
Medicare supplement
Deferred Profit-Sharing Plan
19. Large bank of time comprising all an employee's paid time off (i.e. - vacation - sick leave - and holidays) that the employee can use as they see fit
Cliff Vesting
Final-Pay Formula
Paid-time-off (PTO) bank
Time-based differential pay
20. Refers to a concept that states that employees must be able to influence the attainment of a goal and see a direct result of their efforts in order for incentive pay plans to be effective
Line-of-sight
Individual retirement accounts (IRAs)
Job evaluation
Pay ranges
21. Health-care plan in which the employer assumes the risk of high health-care costs and hires an independent claims department to handle claims
Third-party administrator (TAP) health-care plan
Individual retirement accounts (IRAs)
Indemnity health-care plan
Expatriates
22. Group incentives where a portion of the gains on organization realizes from group efforts is shared with the group
Golden Handcuffs
Gatekeeper
Base Pay
Gainsharing Plans
23. Refers to a situation where an individual's performance is the basis for either the amount or timing of pay increases; also called performance based pay
EGTRRA (Economic Growth & Tax Relief Reconciliation Act)
Job grades
HCE(Highly compensated employee)
Merit pay
24. Listing of grouped data - from lowest to highest
Frequency Distribution
Sarbanes-Oxley Act (SOX)
Profit-sharing plans
Flat-Rate Pay
25. Clauses written into executive contracts that provide special payments to key executives who might lose their position or be otherwise disadvantaged if another company took control of the organization through a merger or acquisition - also known as
Golden Parachutes
Portal-to-portal act
Managed Care
Imputed income
26. Mandatory benefits program set up as part of the Social Security Act that is designed to provide a subsistence payment to employees between jobs
457 Plans
Group-Term Life Insurance
Excess Group-Term Life Insurance
Unemployment insurance
27. Point-factor job evaluation system developed by Hay Associates - a large consulting organization; also known as the Guide Chart-Profile
Money purchase plans
Hay Plan
ASO (Administrative Services-Only health-care plan)
External Equity
28. Monthly benefits paid under Social Security to eligible dependents of deceased workers
29. Replaces a portion of an employee's lost income after short-term disability coverage ends; may be combined with Social Security disability
Exempt Employees
Long-term disability(LTD) coverage
ASO (Administrative Services-Only health-care plan)
FLSA (Fair Labor Standards Act)
30. Act that defines what is incuded as hours worked and is therefore compensable and a factor in calculating overtime
EAP's (Employee Assistance Programs)
International assignees
Job grades
Portal-to-portal act
31. Optional medical coverage for persons covered by Medicare
PBGC (Pension benefit guaranty corporation)
Medicare Part B
Factor Comparison Method
Quartiles
32. Type of formula used to determine retirement plan payments based on the average earnings during a specified number of years
Tax Reform Act
Final-Pay Formula
Paid-time-off (PTO) bank
HMOs(Health maintenace organizations)
33. Benefits paid to unemployed workers beyond required government unemployment benefits
SUB (supplemental unemployment benefits)
Point-factor method
SBJPA (Small Business Job Protection Act)
Uniformed Services Employment and Reemployment Rights Act (USERRA)
34. Determined by an array of issues such as business ownership (employee owns more than 5% of the firm) and/or salary (for 2003 - and 2004 - $90 - 000)
FLSA (Fair Labor Standards Act)
HCE(Highly compensated employee)
Graded Vesting
Travel pay
35. Health-care plan in which the employer assumes the risk of high health-care costs and hires an independent claims department to handle claims
Private-letter rulings
REA (Retirement equity act)
TPA (third-party administrator) health-care plan
Qualifying event
36. Work having equal skills - equal effort - equal responsibility - and equal working conditions - all performed at the same location
Out-of-pocket maximum
Equal Work
403B Plans
Golden Parachutes
37. Payroll deductions selected by the employee such as charitable contributions
Voluntary deductions
Health Insurance purchasing cooperative (HIPC)
Top hat plan
Defined Benefit Plan
38. Includes all renumeration for services (including noncash benefits) and wages - which are taxable when paid
SEP(Simplified Employee Pension)
Taxable Wages
OWBPA (older worker's benefit protection act)
Retirement Equity Act (REA)
39. A reimbursement standard used by insurance companies to determine how much providers should be paid for their services
Managed Care
Indemnity health-care plan
Reasonable and customary
Qualified deferred compensation plan
40. Written benefit plans maintained by the employer that allow employees to use pretax dollars to pay for certain qualified benefits
Section 125 benefit plans
OBRA (omnibus budget reconciliation act)
ASO (Administrative Services-Only health-care plan)
EGTRRA (Economic Growth & Tax Relief Reconciliation Act)
41. Retirement plan by which employees cna contribute each year to a 401(k) plan or IRA
Fee-for-Service-Health-Care Plan
Savings Incentive Match Plan for employees (SIMPLE)
Minimum wage
Salary continuation
42. A grantor trust designed to segregate nonqualified deferred compensation benefits from an employer's general accounts
Rabbi trust
Job evaluation
Expatriates
ADEA (Age Discrimination in Employment Act)
43. Form of defined benefit plan that defines the promised benefit in terms of a hypothetical account balance and features benefit portability
Cash Balance Plan
Fully Insured Health-Care Plan
EGTRRA (Economic Growth & Tax Relief Reconciliation Act)
Internal equity
44. Act that made significant changes in employee benefit programs - especially retirement plans
Tax Reform Act
Geographic Differential Pay
Salary
Direct Compensation
45. Pay is based on longevity in the job - and pay increases occur on a predetermined schedule
Qualifying event
Cash Balance Plan
Draw
Time-based step-rate pay
46. Bases employer unemployment insurance on the employer's number of terminated workers
Cash Profit-Sharing Plans
Experience Rating
FSA's (Flexible Spending Accounts)
HCE(Highly compensated employee)
47. Persons who live in one country and are employed by an organization based in another country; also called international assignees
Expatriates
MHPA (Mental Health Parity Act)
Long-term care insurance
Totalization agreements
48. Persons who live in one country and are employed by an organization based in another country
Money purchase plans
International assignees
Incentive pay
LSI (lump-sum increase)
49. Act that established the prevailing wage and fringe benefit requirements for contractors on federally funded construction projects
COLA (Cost of Living Adjustment)
457 Plans
FMLA (Family and Medical Leave Act)
Davis-Bacon Act
50. Initial amount of covered medical expenses an individual must pay before receiving paid benefits under a health-care plan; usually expressed in terms of an individual and/or family deductible or a per-service fee
Salary compression
Deductible
HRA(Health reimbursement account)
Indemnity health-care plan