Comp and Benefits Final

What is a consideration when developing a pay structure?

external competitiveness

Blips in the market are usually associated with what?

hot skills or tight labor market

What is the new minimum if the market moves 10 percent on a range with a minimum rate of $24hr?

$26.4

If the minimum of a salary range is $24hr and the salary range has a 50 percent range. What is the maximum?

$36 hour

What is the new minimum salary proposed under Former President Obama's revisions to the FLSA?

$47,476

Anniversary date programs are bad because it only allows the employee to believe that performance is targeted on them as an individual. (T or F)

False

Annual enrollment is recommended but not required for those offering benefits with pre-tax dollars. (T or F)

False

Base pay may also be known as pay at risk? (T or F)

False

Benefit programs are classified into 3 groups. (T or F)

False

COBRA is the law that allows employees to take time off from work to take care of medical reasons for themselves or family? (T or F)

False

Culture isn't important when planning a total rewards strategy? (T or F)

False

EGTRRA lowered the child income tax credit. (T or F)

False

ERISA created tax credits for low income savers. (T or F)

False

FLSA requires payment for holidays. (T or F)

False

Family Medical Leave Act allows time away to care for siblings. (T or F)

False

Fiduciary requirements are governed by EGTRRA. (T or F)

False

Form 5500 requires non-discrimination calculations. (T or F)

False

Free salary surveys are often the best type of surveys. (T or F)

False

HIPAA is enforced by the EEOC (T or F)

False

Health Plans and Pension plans are protected under USERRA for 36 months. (T or F)

False

It does not matter how many people are in a particular job when looking at market index. (T or F)

False

It is always ok to conduct your own salary surveys. (T or F)

False

It is not important to have an inventory of current benefit programs when looking at strategic planning? (T or F)

False

Leaders and managers do the same things. (T or F)

False

Legal defensibility should not be considered when evaluating compensation models. (T or F)

False

Legal environments have no impact on base pay structures. (T or F)

False

Organizational tenure is not related to merit pay. (T or F)

False

Paid leave is required under the FMLA (T or F)

False

Pay grades do not have to have a minimum and a maximum. (T or F)

False

Quality and quantity are considered subjective (T or F)

False

Re-Engineering programs in pieces is a good idea. (T or F)

False

Referral bonuses are best when they are used for all job openings that a company has. (T or F)

False

Repayment for a bonus is called a take-back.

False

Salary ranges are not dependent on market data. (T or F)

False

Which of the following is not a pitfall of a sign on bonus?

The employee may use it to negotiate with other employers.

When designing your benefits plan - which should you not consider?

The impact that the changes will have on your human resources staff

Which regulation prohibits discrimination based on race, color, religion, sex, pregnancy or national origin?

Title VII of the Civil Rights Act

Talking about what other companies are doing is a way to help employees better understand Total Reward changes and impact their resistance to change. (T or F)

True

The 8/80 staffing option does not require overtime if you exceed 40 hours in one week. (T or F)

True

The Mental Health Parity Act of 1996 fell under HIPAA. (T or F)

True

The PBGC protects the payments of pension plan benefits. (T or F)

True

The relative worth of the job is important in evaluating pay and grade. (T or F)

True

The tax department is an important resource in the strategic planning process? (T or F)

True

The value that a job brings to an organization is a compensable factor. (T or F)

True

USERRA requires that reemployment has to be honored for employees returning from military duty. (T or F)

True

Unemployment is a type of social insurance? (T or F)

True

What is the relationship between benefits and compensation is considered a strategic benefit planning question? (T or F)

True

When developing a Total Rewards plan, understanding the organization's budget is important. (T or F)

True

When job matching, the relative importance of the job is important. (T or F)

True

Work-life balance is often the "secret sauce" of an organization's culture and success. (T or F)

True

A successful merit program will equally increase pay for all performers. (T or F)

False

A written plan document is required under EGTRRA (T or F)

False

ADEA protects workers who are 35 years old and older. (T or F)

False

Existing job documentation is a good source for a job analysis (T or F)

True

FLSA allows for paying overtime at 2x the hourly rate. (T or F)

True

What is the practice of giving employees time off instead of paying them above 40 hours

Compensatory Time

Allowing for community involvement is not important in worklife effectiveness? (T or F)

False

Which does not generally influence pay structures?

Organizational financials

Which is not an example of a flexible work schedule?

Paid time off

What is not the role of the compensation professional during the salary survey process?

Participate in the survey sponsored education

Which is not a type of income protection program?

Pay for time at work

What is not the purpose of a salary survey?

Predict top job trends in the market

Assessing available resources, creating a budget, establishing a timeline, carrying out a plan are all part of:

Project Planning

_______ is a way of tracking an organization's compensation by viewing employee pay to a total pay range.

Range penetration

_______is designed to encourage a candidate to take a position.

Referral bonus

What is not an objective for planning benefit plans?

Senior Leadership Direction

Which regulation does the EEOC not govern?

Service contract act

A compensation philosophy should do all of the following except:

Specifically outline pay grades.

Which is not a major provision of the FLSA?

Tax brackets for high earners

In order to offer a flexible spending plan, the employer must have a way to collect deductions and administer reimbursements. (T or F)

True

It is possible to communicate too early changes to a Total Rewards program? (T or F)

True

Legal, regulatory and culture requirements are external factors in the strategic planning process? (T or F)

True

Lump sum increases are a way to lessen payroll costs. (T or F)

True

Midpoints and targets are the same thing (T or F)

True

Pay ranges may vary based on type of position (T or F)

True

Personalized enrollment processes are better than group enrollment processes. (T or F)

True

Qualitative measures are as important as quantitative measures. (T or F)

True

Recognition is a type of Total Reward. (T or F)

True

Smoking breaks and time for meditation are a type of benefit program.

True

______ is a specific type of increase given to all employees in either cents per hour or percentages.

Cost of living increase

What position would you not include in a job matching for a secretary?

Customer service rep

1) Industry trends are not a factor when establishing a merit budget. (T or F)

False

A job analysis and a job evaluation are the same thing. (T or F)

False

A sabbatical is a type of advancement opportunity. (T or F)

False

If an employee works 50 hours in one week and 30 hours in the second week (both weeks are in the same pay period with standard scheduling). What is the amount of overtime that the employee must be paid?

10 hours

What are the percentiles that are most often reported on a salary survey?

10th, 25th, 75th, 90th

Which section allows employees to put aside pretax dollars to pay for health or dependent care?

125

Which regulation protects workers who are age 40 or greater from adverse hiring, firing or employment conditions?

ADEA

It is important that employees perceive a merit program to be _____ and ____

Accurate and fair

Which is not a component of a salary range

Average

Which is not considered an approved IRS change for after annual enrollment?

Being out of the country during annual enrollment

Which is considered a benefit for "pay for time not worked".

Bereavement

Which is not a design element of incentive pay?

Budget

What is it that allows continuation of health coverage?

COBRA

Asking employees about what they value is important in developing a Total Rewards strategy. Which is not an example of an appropriate question?

Can an employee afford the cost of their medical plan?

Which is not covered under FMLA?

Caring for a sister with a serious health condition.

1) What places restrictions on bonuses if an employee leaves an organization?

Claw back clause

Paid for services rendered is the definition of what?

Compensation

Which governing body does not influence employee benefit plans?

DEA

Pension plans are this type of retirement plan.

Defined benefit

Which is not a type of flexible benefit plan?

Defined benefit plans

Which is not a step in the communication process?

Develop key talking points

What regulation limits that amount that employees can deduct tax free into their retirement plans?

EGTRRA

Total Rewards communication goals do all of the following except:

Ensure that every employee values their Total Reward package

_________prohibits wage differentiation based on sex for employees engaged in commerce or in production of goods for commerce, or who are employed by an enterprise who is engaged in commerce or production of goods for commerce.

Equal pay act

Managers need to make 2 key sets of decisions when evaluating merit. They are:

Evaluation of performance Allocation of increase awards

What is not part of the legal considerations for base pay?

FMLA

FLSA stands for

Fair Labor Standards Act

Sam makes $9hr and is based out of Roanoke. Sam is working the company picnic in Greensboro on Sunday and must travel there (2 hours each way). He works at the picnic from 1-5pm. On Monday, Sam works his normal shift Mon-Thursday from 8-5 (with an hour of lunch each day). On Friday, Sam takes a day of Paid Time Off (8 hours). Sam should not receive overtime since he was using PTO on Friday? (T or F)

False

Section 125 is the regulation that requires that employers only offer nontaxable benefits. (T or F)

False

Spot bonuses do not have to align with organizational strategies. (T or F)

False

Strategic benefit plans should be drafted and an organization should not deviate from the plan? (T or F)

False

Survivor benefits are a good practice but not core to health and welfare benefits. (T or F)

False

The EEOC regulates FMLA.

False

The FLSA limits the amount of hours an employee can be given in a workweek? (T or F)

False

The midpoint is usually the market comparator and should be the only reference point. (T or F)

False

The spread on each side of the midpoint is equal to ½ of the range. (T or F)

False

Tipped employees who make $2.13 an hour are must earn at least $100 month to qualify for minimum wage? (T or F)

False

Understanding the relationship of the benefits design to the overall Total Rewards plan is a tactical approach. (T or F)

False

Walking the walk is less important than strong written communications. (T or F)

False

When a spot bonus is given for recognition, it does not have tax implications. (T or F)

False

When discussing market adjustments with staff, they do not need to know how the adjustment will be processed. (T or F)

False

When strategically planning benefits, it's important to only focus on the next year as it's too hard to plan changes past that. (T or F)

False

You are allowed to make changes to your pre-tax benefits in any circumstance. (T or F)

False

You cannot have a different range for exempt and non-exempt employees? (T or F)

False

You should implement all flexible benefits in year one. (T or F)

False

You should not involve managers in determining who relevant competition for a salary survey is. (T or F)

False

If a nurse shares that a neighbor has had a heart attack and she's the nurse caring for this patient, which regulation has she violated?

HIPAA

Provides employees with a certificate of credible coverage when health insurance coverage ends?

HIPAA

Flexible spending accounts do not to what?

Have to be offered in conjunction with a medical plan.

Worklife effectiveness is important because it:

Helps with recruitment, motivation and retention

Approaches to communications should be all of the following, except:

High Tech

When trying to answer questions about Total rewards, HR professionals should know all of the following except.

How changes to pay will impact an individual employee's tax filing

Which is not something that leaders need to be trained on when it comes to administering a merit budget program?

How to use the pay grade

Which is not important when evaluating Total Reward changes?

Human Resource staffing

Which of the following is true about travel time?

In most instances, it must be counted, even on the weekends and after hours.

Which is true about compensation?

It is often an emotional issue and tied to perceived self-value.

What are the two types of with-in range increases?

Length of service, merit

Which is not a type of Benefits?

Liability Insurance

Which is not a federal and state statutory benefit?

Life insurance

What is not part of the anatomy of a pay structure?

Market movement

What is the formula for calculating midpoint?

Maximum+minimum/2

When looking at companies to include in a salary survey, what is not important?

Mission

Which organization was created to provide a more equitable environment for labor and management dispute resolution?

NLRB

Employers are required to pay their _____ classified employees overtime?

Non-exempt

Benchmarking benefits criteria does not include:

Number of employees on the plan

Mission is:

The reason for the organization's existence.

Which is not true about a pre-tax benefit?

They are paid with after tax dollars

1) In order for performance based pay programs to be successful, managers must be skilled in managing pay? (T or F)

True

A company's IT systems are important when making decisions on benefits. (T or F)

True

A form 5500 is required for flexible benefit plans? (T or F)

True

A large company relocating to a renewal area may want to conduct an ad hoc survey. (T or F)

True

A money purchase plan is an example of defined contribution plan. (T or F)

True

A summary plan description is only required for health plans for employers that have over 100 employees. (T or F)

True

An HR professional needs to know when a market adjustment will be paid to staff to be able to calculate the cost of the increase. (T or F)

True

An organization should do an inventory of current total rewards before embarking on a new model. (T or F)

True

Benchmarking health benefit plans includes looking at medical management programs. (T or F)

True

Both legal separation and divorce are status changes that allow benefit election changes. (T or F)

True

Child Labor restrictions are part of the FLSA (T or F)

True

Child care programs are examples of Total Rewards that support Work-Life balance. (T or F)

True

Commissions can be counted as part of the overtime wage calculation? (T or F)

True

Confidentiality is important in salary surveys (T or F)

True

Corporate restructuring may impact a benefits strategy. (T or F)

True

Cost of living is a factor when determining a merit budget (T or F)

True

Development and Career opportunities are part of a Total Rewards package? (T or F)

True

EGTRRA established qualified tuition programs. (T or F)

True

EGTRRA reduced the gift tax. (T or F)

True

ERISA requires that employers put into writing the most important elements of their benefit plans for employees? (T or F)

True

ERISA's main requirement is to protect the interests of employees who are enrolled in employee benefit plans. (T or F)

True

Employee attraction and retention are a type of quantitative measure. (T or F)

True

Employees with a higher level of flexibility in their schedule are more likely to be engaged in their jobs. (T or F)

True

Which regulation provides rights to military service personnel?

USERRA

When planning a benefit strategy, which is considered an internal force?

Unions

What are the two elements of compensation?

Variable and Base

The following is a strategic question when planning for benefits (vs. a tactical)

What is the mission regarding benefits?

Which is not a strategic question when deciding total rewards structure?

Which health costs are increasing most rapidly?

Two measurements for whether a total rewards structure is working are:

quantitative and qualitative

By not following ERISA guidelines, a plan can lose their

tax exemption