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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. Mandatory benefits program set up as part of the Social Security Act that is designed to provide a subsistence payment to employees between jobs
EGTRRA (Economic Growth & Tax Relief Reconciliation Act)
ASO (Administrative Services-Only health-care plan)
Unemployment insurance
Improshare plan
2. Persons who live in one country and are employed by an organization based in another country; also called international assignees
Expatriates
Flat-Rate Pay
Time-based step-rate pay
Comparable Worth
3. The pay level divided by the midpoint of the pay range
SUB (supplemental unemployment benefits)
Red-circle rates
Pay surveys
Compa-Ratio
4. Plans that allow employees to make tax-favored pay deferrals toward retirement savings through a payroll deduction plan
Retirement Equity Act (REA)
Defined Benefit Plan
External Equity
401K Plans
5. Situation in which employee pays a portion of the required monthly preium for health-care coverage
Defined Benefit Plan
Premium sharing
Tax Reform Act
Internal equity
6. Workers who are covered under FLSA regulations as determined by the IRS 20-factor test
Cliff Vesting
Money purchase plans
Employees
Differential Pay
7. Point-factor job evaluation system developed by Hay Associates a large consulting organization - also known as the Hay Plan
Guide Chart-Profile
Health Insurance purchasing cooperative (HIPC)
Utilization review
Parachutes
8. Act that amends the Work Opportunity Tax Credit to reduce employer federal tax liability
Hourly wage
Emergency-Shift Pay
Seniority
Tax and Trade Relief Extension Act
9. 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 coinsurance
Health Insurance Portability and Accountability Act(HIPAA)
Money purchase plans
Quartiles
Copayment
10. 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.
POPS(premium-only plans)
Prudent person rule
Gainsharing Plans
Money purchase plans
11. Group incentive plan developed by Joseph Scanlon; workers earn a bonus for increasing productivity
Money purchase plans
Merit pay
Scanlon Plan
Modified-duty programs
12. Form of direct compensation where employers pay for performance beyond normal expectations to motivate employees to perform at higher levels
EAP's (Employee Assistance Programs)
Overtime pay
Copayment
Incentive pay
13. Retirement benefit offered to all employees in the organization; provides tax advantages and is protected under ERISA
Qualified deferred compensation plan
Tax Reform Act
Golden Handcuffs
Gross Earnings
14. Pay systems in which employee characteristics - rather than the job - determine pay.
CPI (Consumer Price Index)
Overtime pay
401K Plans
Performance-based pay
15. Act that requires benefit continuation and crediting of service while an employee is on military active duty
Portal-to-portal act
HMOs(Health maintenace organizations)
Excess Group-Term Life Insurance
Uniformed Services Employment and Reemployment Rights Act (USERRA)
16. Set up by ERISA to insure payment of defined benefit pension plan benefits in the event that private-sector defined benefit pension plan terminates with insufficient funds to pay the benefits
Gatekeeper
Benchmark Jobs
Reasonable and customary
PBGC (Pension benefit guaranty corporation)
17. Workers' compensation plans set up by employers/industries in place of their state's compensation plan
Deferred Profit-Sharing Plan
Totalization agreements
Coinsurance
Nonsubscriber plans
18. Tax-deferred account to whcih the self-employd and employees of very small businesses can contribute
Capitated Health Care Plan
Health Insurance Portability and Accountability Act(HIPAA)
Reasonable and customary
SEP(Simplified Employee Pension)
19. Type of formula used to determine retirement plan payments based on the average earnings during a specified number of years
Welfare-to-Work Tax Credit
Cash Profit-Sharing Plans
Serious health condition
Final-Pay Formula
20. Allows employees to advance via either a management or technical track within the organization
Dual-Ladder Career Progression
Draw
Compa-Ratio
Flat-Dollar Formula
21. A grantor trust designed to segregate nonqualified deferred compensation benefits from an employer's general accounts
403B Plans
Compensable Factors
Rabbi trust
Mental Health Parity Act (MHPA)
22. Occurs when there is only a small difference in pay between employees regardles of their skills - experience - or seniority; also known as pay compression
Salary compression
Capitated Health Care Plan
Fee-for-Service-Health-Care Plan
Frequency Distribution
23. Full-choice health-care plan that allows covered employees to go to any qualified physician or hospital and submit claims to the insurance company
Minimum wage
Fee-for-Service-Health-Care Plan
Section 125 benefit plans
FASB (Financial Accounting Standards Board)
24. Average of data that takes other factors such as the number of incumbents into account
POPS(premium-only plans)
Weighted average
Welfare-to-Work Tax Credit
Reasonable and customary
25. Describes a situation where an employee's pay is below the minimum of the range
457 Plans
SUB (supplemental unemployment benefits)
Green-Circle Rates
Nonsubscriber plans
26. Reflect the dimensions along which a job is perceived to add value to the organization; these factors are used to determine which jobs are worth more than others
SUB (supplemental unemployment benefits)
External Equity
Compensable Factors
Pay surveys
27. Companies that conduct business and have offices in a number of different countries
Gross Earnings
Sarbanes-Oxley Act (SOX)
MNCs (multinational companies)
Golden Handcuffs
28. 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
Flat-Dollar Formula
Preexisting conditions
ESOP's (Employee Stock Ownership Plans)
Compa-Ratio
29. 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
Health Insurance purchasing cooperative (HIPC)
Point-factor method
EGTRRA (Economic Growth & Tax Relief Reconciliation Act)
Seniority
30. Typically paid to nonexempt workers for the time they spend traveling to or between work assignments
Travel pay
Walsh-Healey Act
Employee Commuting Flexibility Act
Gross Earnings
31. Monthly benefits paid under Social Security to workers (and eligible dependents) younger than the Social Security retirement age if they have a disability
Flat-Dollar Formula
Qualifying event
Disability Benefits
Benchmark Jobs
32. Payment paid to salespeople - usually calculated as a percentage of sales
Comission
Compa-Ratio
PBGC (Pension benefit guaranty corporation)
Job grades
33. Refers to a job ranking method in which evaluator compares each job with every other job being evaluated
Deferred Profit-Sharing Plan
Time-based step-rate pay
Paired-comparison method
ASO (Administrative Services-Only health-care plan)
34. Occurs when an organization's pay rates are at least equal to market rates
Maturity curves
Seniority
Excess Group-Term Life Insurance
External Equity
35. Jobs used as reference points when setting up a job classification system and when designing or modifying a pay structure
Rabbi trust
Frequency Table
Benchmark Jobs
Variable pay
36. The total earnings before taxes; includes regular wages plus additional earnings such as tips - bonuses and overtime pay
Gross Earnings
Broadbanding
Davis-Bacon Act
Deductible
37. System that shows preference to employees with the longest service
Medicare Part A
External Equity
Employees
Seniority
38. A reimbursement standard used by insurance companies to determine how much providers should be paid for their services
POPS(premium-only plans)
Reasonable and customary
Nonexempt employees
Copeland 'Anti-kickback' Act
39. Collect information on prevailing market rates and include topics such as incentive plans - overtime pay - base pay - and vacation and holiday practices.
Geographic Differential Pay
Pay surveys
Imputed income
Sarbanes-Oxley Act (SOX)
40. Tax-deferred accounts to which wage earners can contribute an amount up to a yearly maximum
Employee Commuting Flexibility Act
Nonsubscriber plans
POPS(premium-only plans)
Individual retirement accounts (IRAs)
41. Used to group jobs that have approximately the same relatve internal worth and are paid at the same rate or rate change
Private-letter rulings
Seniority
Job grades
Frequency Distribution
42. Payroll deductions such as tax levies and court-ordered child support that an employee must pay; withheld from paychecks before voluntary deductions
Qualifying event
Guide Chart-Profile
Involuntary deductions
General Scheduled (GS) System
43. Act that provided certain legal protections for spousal beneficiaries of qualified retirement plans
Medicare Part B
Section 125 benefit plans
Differential Pay
Retirement Equity Act (REA)
44. In health plans - requires a secondary carrier to reimburse only up to the level of reimbursement they would have paid.
Compensable Factors
Gross Earnings
Minimum wage
Nonduplication of benefits
45. Income deferral benefit offered to a select group of management or highly compensated employees in the organization
Job evaluation
Productivity-based pay
Nonqualified deferred compensation plan
FSA's (Flexible Spending Accounts)
46. 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
Fee-for-Service-Health-Care Plan
Sunset Clause
Improshare plan
Portal-to-portal act
47. Act that addresses parity between mental health benefits and medical benefits
MHPA (Mental Health Parity Act)
Internal equity
Full Cafeteria Plans
Premium sharing
48. Required for nonexempt workers under FLSA at 1.5 times the regular rate of pay for hours over 40 in a workweek.
Overtime pay
Job ranking
CPI (Consumer Price Index)
REA (Retirement equity act)
49. Plans in which employers make mandatory payments (a fixed percentage of an eligible employee's compensation) to a retirement plan.
Cash Profit-Sharing Plans
SBJPA (Small Business Job Protection Act)
External Equity
Money purchase plans
50. Provide employees with payments based on the organization's profitability that are additional to the employee's normal rates of pay
Cash Profit-Sharing Plans
Hay Plan
Tax and Trade Relief Extension Act
QDROs(qualified domestic relations orders)