Test your basic knowledge |

Human Resources Management: Compensation

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. Amendment to the Portal to Portal Act; Clarifies that commuting time is not paid working time






2. Workers who are covered under FLSA regulations as determined by the IRS 20-factor test






3. Instrument that measures change over time for costs of a group of goods and services






4. System that shows preference to employees with the longest service






5. Set of 20 factors that the IRS uses to determine whether workers are employees or independent contractors






6. Type of formula used to determine retirement plan payments based on the average earnings during a specified number of years






7. Health plan that covers specific expenses not covered by Medicare






8. Pay systems in which employee characteristics - rather than the job - determine pay.






9. Refers to pay rates that are affected by when an employee works






10. Occurs when there is only a small difference in pay between employees regardless of their skills - experience - or seniority; also known as salary compression






11. Plans that allow employees of certain tax-exempt organizations to contribute pre-tax dollars toward retirement savings






12. Act that regulates employee overtime status (exempt and nonexempt) - child labor - minimum wage - overtime pay - record keeping - and other administrative concerns






13. Premium ammount that a company pays on behalf of an employee; the employee does not receive the benefit in dollars but does pay taxes on it






14. Act that extended the concept of prevailing wage to employers who manufacture or supply goods under government contracts and required time and a half






15. In health plans - requires a secondary carrier to reimburse only up to the level of reimbursement they would have paid.






16. Describes the extra pay that employees receive when they are called into work during an emergency (e.g. power outage)






17. Health-care plan in which the employer assumes the role of the insurance company and assumes some or all of the risk






18. System of overlapping short- and long-term incentives to make it less likely that employees will leave the company






19. Describes a situation where an employee's pay is below the minimum of the range






20. Bilateral social security agreements that coordinate the U.S. social security program with the comparable programs of other countries; also known as totalization agreements






21. Act that addresses parity between mental health benefits and medical benefits






22. Process by which a retirement benefit becomes nonforfeitable






23. Purchaes health-care plans for large groups of employers to provide small businesses the economic advantages large companies have






24. Social Security Administration program that provides medical care for the aged; is taxed with no yearly maximum and is matched by the employer






25. 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






26. Stock bonus plans by which employees gain ownership in the organization for which they work


27. Replaces a portion of an employee's lost income after short-term disability coverage ends; may be combined with Social Security disability






28. Act that regulated 'insider trading'






29. Distribute a portion of an organization's profits to its employees






30. Includes all renumeration for services (including noncash benefits) and wages - which are taxable when paid






31. Provides each incumbent of a job with the same rate of pay - regardless of performance or seniority; also known as single-rate pay






32. Full-choice health-care plan that allows covered employees to go to any qualified physician or hospital and submit claims to the insurance company






33. Monthly benefits paid under Social Security to workers (and eligible dependents) younger than the Social Security retirement age if they have a disability






34. Act that defines what is incuded as hours worked and is therefore compensable and a factor in calculating overtime






35. The total earnings before taxes; includes regular wages plus additional earnings such as tips - bonuses and overtime pay






36. Refers to pay that is received by an employee - including base pay - differential pay - and incentive pay






37. 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.






38. Health-care plan in which the employer assumes the risk of high health-care costs and hires an independent claims department to handle claims






39. Amount advanced on future commissions






40. Written benefit plans maintained by the employer that allow employees to use pretax dollars to pay for certain qualified benefits






41. Bases employer unemployment insurance on the employer's number of terminated workers






42. Most commonly used method of job evaluation; it involves using specific factors to evaluate job worth






43. Act that made changes to improve health-care coverage portability and accessibility






44. Plan in which the employer and sometimes the employee make an annual payment to the employee's retirement plan account






45. Refers to insurance coverage that provides a daily monetary benefit to people who are chronically ill and who require living assistance either at home or in a residential facility






46. Collect information on prevailing market rates and include topics such as incentive plans - overtime pay - base pay - and vacation and holiday practices.






47. Pay adjustment given to employees regardless of their performance or company profitability; usually linked to inflation; also referred to as a standard percentage raise






48. Point-factor job evaluation system developed by Hay Associates - a large consulting organization; also known as the Guide Chart-Profile






49. Act that made changes to rules regarding the ability of tax-exempt organizations to institute retirement plans modeled after 401(k) and IRA accounts and to the definition of highly compensated employees






50. Payment paid to salespeople - usually calculated as a percentage of sales