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Test your basic knowledge |
Human Resources Management: Compensation
Start Test
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. 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
Supplemental wages
Travel pay
Paid-time-off (PTO) bank
Graded Vesting
2. Health plan where benefits are reduced for employees eligible for Medicare; Medicare becomes the primary provider
Imputed income
Differential Pay
Medicare carve-out
Draw
3. Type of health-care plan in which the employer assumes the risk of high costs and hires an insurance claims department to handle claims
ASO (Administrative Services-Only health-care plan)
POPS(premium-only plans)
Individual retirement accounts (IRAs)
Unemployment insurance
4. Act that extended the concept of prevailing wage to employers who manufacture or supply goods under government contracts and required time and a half
Fully Insured Health-Care Plan
UCA (Unemployment Compensation Amendments)
Job ranking
Walsh-Healey Act
5. Type of formula used to determine retirement plan payments based on the average earnings during a specified number of years
FASB (Financial Accounting Standards Board)
Cash Profit-Sharing Plans
Seniority
Final-Pay Formula
6. Type of formula used to determine benefits under a defined benefit pension plan - based on a percentage of pay for each year the employee is in the plan or a percentage of career-average pay times years of service
International assignees
Career-Average Formula
Medicare Part A
Paid-time-off (PTO) bank
7. Situation in which employee pays a portion of the required monthly preium for health-care coverage
Taxpayer Relief Act (TRA)
401K Plans
External Equity
Premium sharing
8. Form of health care that provides services for a fixed period on a prepaid basis
Geographic Differential Pay
Money purchase plans
Time-based step-rate pay
HMOs(Health maintenace organizations)
9. Act that regulated 'insider trading'
Gainsharing Plans
Securities and Exchange Act
Employees
Variable pay
10. Method similar to job evaluation systems that evaluates jobs based upon their market value
Market-based evaluation
Call-Back Pay
Performance-based pay
QDROs(qualified domestic relations orders)
11. Act that addresses parity between mental health benefits and medical benefits.
ADEA (Age Discrimination in Employment Act)
Cash Balance Plan
Base Pay
Mental Health Parity Act (MHPA)
12. 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
Merit pay
Base Pay
Retirement Equity Act (REA)
Golden Handcuffs
13. Private body that decides how financial executives should report their firms' financial information to their share-holders
Flat-Dollar Formula
FASB (Financial Accounting Standards Board)
COLA (Cost of Living Adjustment)
Group-Term Life Insurance
14. Plans in which employers make mandatory payments (a fixed percentage of an eligible employee's compensation) to a retirement plan.
Imputed income
Money purchase plans
457 Plans
Seniority
15. Type of formula used in determining retirement plan payments where the employer pays a set dollar amount for each year of service under the plan
Managed Care
Flat-Dollar Formula
Frequency Table
Guide Chart-Profile
16. Act that requires benefit continuation and crediting of service while an employee is on military active duty
Uniformed Services Employment and Reemployment Rights Act (USERRA)
Merit pay
Time-based step-rate pay
REA (Retirement equity act)
17. Used to group jobs that have approximately the same relatve internal worth and are paid at the same rate or rate change
Job grades
Travel pay
Pay ranges
Paired-comparison method
18. Act that adjusts certain minimum vesting schedules - increases retirement plan compensation and contribution limits - permits catch-up contributions by participants over age 50 in certain retirement plans - and modifies distribution and rollover r
EGTRRA (Economic Growth & Tax Relief Reconciliation Act)
Involuntary deductions
Out-of-pocket maximum
Direct Compensation
19. Refers to a qualified - tax deferred retirement plan where the employer contributes a percentage of profits to employee accounts
Medicare carve-out
Pay ranges
Private-letter rulings
Deferred Profit-Sharing Plan
20. In health plans - requires a secondary carrier to reimburse only up to the level of reimbursement they would have paid.
Nonduplication of benefits
EGTRRA (Economic Growth & Tax Relief Reconciliation Act)
COLA (Cost of Living Adjustment)
Job evaluation
21. Typically paid to nonexempt workers for the time they spend traveling to or between work assignments
COLA (Cost of Living Adjustment)
Travel pay
Independent contractors
Prudent person rule
22. Tax-deferred account to whcih the self-employd and employees of very small businesses can contribute
SEP(Simplified Employee Pension)
Job grades
FASB (Financial Accounting Standards Board)
MNCs (multinational companies)
23. Uniform amount of money paid to a worker regardless of how many hours are worked
ASO (Administrative Services-Only health-care plan)
Sarbanes-Oxley Act (SOX)
Supplemental wages
Salary
24. Offered to employees who are on leave for injuries under FMLA; job tasks are modified to meet the employee's restrictions
Modified-duty programs
Employee Commuting Flexibility Act
Qualified deferred compensation plan
Copeland 'Anti-kickback' Act
25. 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
Equal Work
EAP's (Employee Assistance Programs)
Imputed income
Broadbanding
26. Evaluation method that establishes a hierarchy of jobs from lowest to highest based on overall importance to the organization
Full Cafeteria Plans
Dual-Ladder Career Progression
OBRA (omnibus budget reconciliation act)
Job ranking
27. Plans that allow employees of states - political subdivisions or agencies of states - and certain tax-exempt organizations to defer receipt of wages
Sarbanes-Oxley Act (SOX)
457 Plans
Hazard Pay
International assignees
28. Workers who are covered under FLSA regulations as determined by the IRS 20-factor test
Employees
Hourly wage
Indirect compensation
ASO (Administrative Services-Only health-care plan)
29. Nonqualified deferred compensation plan designed to provide retirement benefits to a select group of management or highly compensated employees
FASB (Financial Accounting Standards Board)
Top hat plan
Long-term disability(LTD) coverage
Capitated Health Care Plan
30. Pay is based on longevity in the job - and pay increases occur on a predetermined schedule
COLA (Cost of Living Adjustment)
Time-based step-rate pay
PBGC (Pension benefit guaranty corporation)
Tax Reform Act
31. Extra pay for working holidays or vacation days.
HMOs(Health maintenace organizations)
Prudent person rule
Flat-Dollar Formula
Premium pay
32. Pay that employees receive when they are on call but not actually working
On-call pay
FASB (Financial Accounting Standards Board)
Expatriates
Flat-Dollar Formula
33. Written benefit plans maintained by the employer that allow employees to use pretax dollars to pay for certain qualified benefits
OWBPA (older worker's benefit protection act)
Section 125 benefit plans
Merit pay
Parachutes
34. Health-Care plan in which the employer pays a third party provider to assume all costs for health-care coverage for its employees
Fully Insured Health-Care Plan
Frequency Distribution
Excess Group-Term Life Insurance
COLA (Cost of Living Adjustment)
35. Basic compensation an employee receives - usually as a wage or salary
Mental Health Parity Act (MHPA)
Welfare-to-Work Tax Credit
Defined Contribution Plan
Base Pay
36. Plan in which the employer and sometimes the employee make an annual payment to the employee's retirement plan account
Defined Contribution Plan
Self-insured health-care plan
Cliff Vesting
MHPA (Mental Health Parity Act)
37. Act that addresses parity between mental health benefits and medical benefits
Securities and Exchange Act
Premium pay
Maturity curves
MHPA (Mental Health Parity Act)
38. Specified percentage (typically 20-30%) of covered medical expenses that employee pays or the fixed dollar amount that a covered person pays each time he or she visits a physician; also known as copayment
QDROs(qualified domestic relations orders)
Job evaluation
Coinsurance
Long-term care insurance
39. 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
Profit-sharing plans
Employees
Parachutes
Paired-comparison method
40. Act that added two sections to the Tax Code: Section 125 and Section 401(k)
Revenue Act
Walsh-Healey Act
Retirement Equity Act (REA)
Improshare plan
41. Imposed a mandatory 20% federal income tax witholding requirement on qualified retirement plan proceeds that a recipient does not roll over into another qualified retirement plan or individual retirement account
Premium sharing
Time-based step-rate pay
UCA (Unemployment Compensation Amendments)
Cash Balance Plan
42. Requires administrators of defined contribution plans to provide notice of covered blackout periods; provides whistle-blower protection for employees
Taxpayer Relief Act (TRA)
Sarbanes-Oxley Act (SOX)
Imputed income
Red-circle rates
43. 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)
HCE(Highly compensated employee)
Savings Incentive Match Plan for employees (SIMPLE)
Time-based differential pay
Flat-Rate Pay
44. Audit of health-care use and charges to identify which benefits are used and to make certain that care is necessary and costs are in line
Utilization review
Gross Earnings
Health Insurance purchasing cooperative (HIPC)
OBRA (omnibus budget reconciliation act)
45. Non-qualified deferred compensation plans that provide benefits to selected management or highly compensated employees beyond section 401 or 415 limitations
Excess Deferral Plans
Dual-Ladder Career Progression
In loco parentis
SBJPA (Small Business Job Protection Act)
46. Pay adjustment given to employees regardless of their performance or company profitability; usually linked to inflation; also referred to as a standard percentage raise
401K Plans
Medicare supplement
COLA (Cost of Living Adjustment)
Quartiles
47. Stated amount out of pocket the insured can pay for medical costs in a 12-month period before copayments end
Survivor's benefits
Out-of-pocket maximum
Dual-Ladder Career Progression
Savings Incentive Match Plan for employees (SIMPLE)
48. Occurs when there is only a small difference in pay between employees regardless of their skills - experience - or seniority; also known as salary compression
Health Insurance Portability and Accountability Act(HIPAA)
Savings Incentive Match Plan for employees (SIMPLE)
Pay compression
Section 125 benefit plans
49. Employees covered under FLSA regulations - including minimum wage and overtime pay requirements
Call-Back Pay
Nonexempt employees
Compensable Factors
FSA's (Flexible Spending Accounts)
50. Refers to a job ranking method in which evaluator compares each job with every other job being evaluated
Nonqualified deferred compensation plan
Factor Comparison Method
Time-based step-rate pay
Paired-comparison method