Compensation and Benefits Final

What are the 2 elements of compesnation

variable pay and base pay

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

False

Annual enrollment is recommended but not required for those offering benefits with pre-tax dollars.

False

Base pay may also be known as pay at risk?

False

Benefit programs are classified into 3 groups.

False

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

False

Culture isn't important when planning a total rewards strategy?

False

EGTRRA lowered the child income tax credit.

False

ERISA created tax credits for low income savers.

False

FLSA requires payment for holidays.

False

Family Medical Leave Act allows time away to care for siblings.

False

Fiduciary requirements are governed by EGTRRA.

False

Form 5500 requires non-discrimination calculations.

False

Free salary surveys are often best type of surveys

False

HIPAA is enforced by the EEOC.

False

Health Plans and Pension plans are protected under USERRA for 36 months.

False

Industry trends are not a factor when establishing a merit budget

False

It does not matter how many people are in a particular job when looking at market index

False

It is always ok to conduct your own salary surveys

False

It is not important to have an inventory of current benefit programs when looking at strategic planning?

False

Leaders and managers do the same things.

False

Legal defensibility should not be considered when evaluating compensation models

False

Legal environments have no impact on base pay structures

False

Organizational tenure is not related to merit pay

False

Paid leave is required under the FMLA

False

Pay grades do not have to have a minimum and a maximum

False

Quality and quantity are considered subjective

False

Re-Engineering programs in pieces is a good idea

False

Referral bonuses are best when they are used for all job openings that a company has.

False

Repayment for a bonus is called a take-back

False

Salary ranges are not dependent on market data.

False

The 8/80 staffing option does not require overtime if you exceed 40 hours in one week.

True

The Mental Health Parity Act of 1996 fell under HIPAA.

True

The PBGC protects the payments of pension plan benefits.

True

The relative worth of the job is important in evaluating pay and grade

True

The tax department is an important resource in the strategic planning process?

True

The value that a job brings to an organization is a compensable factor

True

USERRA requires that reemployment has to be honored for employees returning from military duty

True

Unemployment is a type of social insurance?

True

What is the relationship between benefits and compensation is considered a strategic benefit planning question?

True

When developing a Total Rewards plan, understanding the organization's budget is important.

True

When job matching, the relative importance of the job is important

True

Work-life balance is often the "secret sauce" of an organization's culture and success.

True

Which section allows employees to put aside pretax dollars to pay for health or dependent care? a) 150 b) 125 c) 200 d) 11956

b) 125

What is the new minimum salary proposed under Former President Obama's revisions to the FLSA? a. $23,660 b. $47,476 c. $33,000 d. $50,000

b. $47,476

What is it that allows continuation of health coverage? a. ERiSA b. COBRA c. EGTRRA d. HIPAA

b. COBRA

which is not considered an approved IRS change for after annual enrollment? a. Marriage b. Divorce c. Termination of coverage d. Being out of the country during annual enrollment

d. Being out of the country during annual enrollment

Which is not a design element of incentive pay? a. Payout b. Performance c. Eligibility d. Budget

d. Budget

h governing body does not influence employee benefit plans? a. EEOC b. DOL c. PBGC d. DEA

d. DEA

Approaches to communications should be all of the following, except: a. Comprehensive b. Accessible c. Human d. High Tech e. Searchable

d. High Tech

When trying to answer questions about Total rewards, HR professionals should know all of the following except ¬¬¬¬. a. What all major industries are offering for benefits b. How each change will impact individual employees -may also be this answer c. The organization's business and financial climate d. How changes to pay will impact an individual employee's tax filing

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

Which is not a type of Benefits? a. Social Insurance b. Group Insurance c. Pay for Time Not Worked d. Liability Insurance

d. Liability Insurance

Benchmarking benefits criteria does not include: a. Deductible levels b. Premium increases c. Emergency room visits d. Number of employees on the plan

d. Number of employees on the plan

What is not an objective for planning benefit plans? a. Administrative Cost and Complexity b. Percent of Payroll c. Tax and Accounting Issues d. Senior Leadership Direction

d. Senior Leadership Direction

A successful merit program will equally increase pay for all performs.

False

A written plan document is required under EGTRRA

False

ADEA protects workers who are 35 years old and older.

False

Allowing for community involvement is not important in worklife effectiveness?

False

FLSA allows for paying overtime at 2x the hourly rate

True

__________ is a specific type of increase given to al employees in either cents per hour or percentages

Cost of Living increase

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

Participate in the survey sponsored education

What is not the purpose of a salary survey

Predict top job trends in the market

____ _____ 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

In order for performance based pay programs to be successful, managers must be skilled in managing pay

True

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

True

It is possible to communicate too early changes to a Total Rewards program?

True

Legal, regulatory and culture requirements are external factors in the strategic planning process?

True

Lump sum increases are a way to lessen payroll costs

True

Midpoints and targets are the same thing

True

Pay ranges may vary based on type of position

True

Personalized enrollment processes are better than group enrollment processes.

True

Qualitative measures are as important as quantitative measures

True

Recognition is a type of Total Reward?

True

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

True

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

True

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

Customer Service Rep

A job analysis and a job evaluation are the same thing.

False

A sabbatical is a type of advancement opportunity.

False

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

- Evaluation of performance - Allocation of increase awards

What are the two types of with-in range increases

- Length of service - Merit

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

10th, 25th, 75th, and 90th

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

A: The employee many use it to negotiate with other employers

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

What is a consideration when developing a pay structure?

C: External competitiveness

Which does not generally influence pay structures

C: Organizational Financials

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

Claw Back Clause

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

D: How to use the pay range

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?

False

Section 125 is the regulation that requires that employers only offer nontaxable benefits.

False

Sport bonuses do not have to align with organizational strategies

False

Strategic benefit plans should be drafted and an organization should not deviate from the plan?

False

Survivor benefits are a good practice but not core to health and welfare benefits.

False

The EEOC regulates FMLA.

False

The FLSA limits the amount of hours an employee can be given in a workweek?

False

The midpoint is usually the market comparator and should be the only reference point

False

The spread on each side of the midpoint is equal to 1/2 of the range

False

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

False

Understanding the relationship of the benefits design to the overall Total Rewards plan is a tactical approach.

False

Walking the walk is less important than strong written communications.

False

When a spot bonus is given for recognition, it does not have tax implications

False

When discussing market adjustment with staff, they do not need how the adjustment will be processed

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.

False

You are allowed to make changes to your pre-tax benefits in any circumstance.

False

You cannot have a different range for exempt and non-exempt employees?

False

You should implement all flexible benefits in year one.

False

You should not involve managers in determining who relevant competition for a salary survey is

False

Blips in the market are usually associated with what?

Hot skills or tight labor market

What is not part of the anatomy of a pay structure

Market Movement

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

Mission

A company's IT systems are important when making decisions on benefits.

True

A form 5500 is required for flexible benefit plans?

True

A large company relocating to a renewal area may want to conduct an ad hoc survey

True

A money purchase plan is an example of defined contribution plan.

True

A summary plan description is only required for health plans for employers that have over 100 employees.

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

True

An organization should do an inventory of current total rewards before embarking on a new model

True

Benchmarking health benefit plans includes looking at medical management programs.

True

Both legal separation and divorce are status changes that allow benefit election changes.

True

Child Labor restrictions are part of the FLSA

True

Child care programs are examples of Total Rewards that support Work-Life balance.

True

Commissions can be counted as part of the overtime wage calculation?

True

Confidentiality is important in salary surveys

True

Corporate restructuring may impact a benefits strategy.

True

Cost of living is a factor when determining a merit budget.

True

Development and Career opportunities are part of a Total Rewards package?

True

EGTRRA established qualified tuition programs.

True

EGTRRA reduced the gift tax.

True

ERISA's main requirement is to protect the interests of employees who are enrolled in employee benefit plans.

True

Employee attraction and retention are a type of quantitative measure.

True

Existing job documentation is a good source for a job analysis

True

If the minimum of a salary range is $24hr and the salary range has a 50 percent range. What is the maximum? a. $36 hr b. $37.5 hr c. $12 hr d. $48 hr

a. $36 hr

Which is not a component of a salary range a. Average b. Minimum c. Midpoint d. Maximum

a. Average

Which is considered a benefit for "pay for time not worked". a. Bereavement b. Disability c. FMLA d. USERRA

a. Bereavement

Pension plans are this type of retirement plan. a. Defined benefit b. Defined contribution c. Health and Welfare d. 401(k)

a. Defined benefit

What regulation limits that amount that employees can deduct tax free into their retirement plans? a. eGTRRA b. HIPAA c. ERISA d. COBRA

a. EGTRRA

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? a. HIPAA b. ERISA c. COBRA d. FMLA

a. HIPAA

Which is not an example of a flexible work schedule? a. Paid Time off b. Flex time c. Compressed work schedules d. telecommuting

a. Paid Time off

Which is not a type of income protection program? a. Pay for time at work b. Health Benefits c. Retirement Benefits d. Worker's Compensation

a. Pay for time at work

Which is not true about a pre-tax benefit? a. They are paid with after tax dollars b. They must have a summary plan description c. They must have a 5500 filing d. Employee consent is required

a. They are paid with after tax dollars

Which is not a strategic question when deciding total rewards structure? a. Which health costs are increasing most rapidly? b. What is our commitment to retiree health care? c. How do benefits support the corporate business mission? d. Do our health and welfare programs form an integrated benefit program?

a. Which health costs are increasing most rapidly?

Which is not covered under FMLA? a. The birth or adoption of a child. b. Caring for a sister with a serious health condition. c. Caring for a parent with a serious health condition. d. Caring for a spouse with a serious health condition.

b. Caring for a sister with a serious health condition.

Paid for services rendered is the definition of what? a. Total Rewards b. Compensation c. Variable Pay d. Base Pay

b. Compensation

What is the practice of giving employees time off instead of paying them above 40 hours a. Paid Time Off b. Compensatory Time c. Overtime d. Administrative Leave

b. Compensatory Time

Which is not a step in the communication process? a. Analyze the situation b. Develop key talking points c. Define the objectives d. Conduct audience research

b. Develop key talking points

Provides employees with a certificate of credible coverage when health insurance coverage ends? a. COBRA b. HIPAA c. FMLA d. ERISA

b. HIPAA

Worklife effectiveness is important because it: a. Is a very popular approach in expanding benefits in the marketplace. b. Helps with recruitment, motivation and retention c. Is a free "add-on" for benefits d. Enhances culture

b. Helps with recruitment, motivation and retention

Which of the following is true about travel time? a. It must be paid to salaried employees b. In most instances, it must be counted, even on the weekends and after hours. c. Daily commutes are paid. d. It does not apply when traveling to conferences.

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

Which organization was created to provide a more equitable environment for labor and management dispute resolution? a. EEOC b. NLRB c. FLSA d. DOL

b. NLRB

Assessing available resources, creating a budget, establishing a timeline, carrying out a plan are all part of: a. Communication planning b. Project planning c. Financial planning d. Organizational development

b. Project planning

Which regulation does the EEOC not govern? a. Equal Pay Act b. Service Contract Act c. ADEA d. ADA e. Civil Rights Act

b. Service Contract Act

The following is a strategic question when planning for benefits (vs. a tactical) a. What health programs are expanding rapidly? b. What is the mission regarding benefits? c. How do other programs impact health benefit costs? d. How should the health plan be changed to control employer health care?

b. What is the mission regarding benefits?

Asking employees about what they value is important in developing a Total Rewards strategy. Which is not an example of an appropriate question? a) What is the level of satisfaction with pay and benefits? b) What is it that managers want from their employee's performance? c) Can an employee afford the cost of their medical plan? d) Does the employee plan to stay with the company?

c) Can an employee afford the cost of their medical plan?

What is the new minimum if the market moves 10 percent on a range with a minimum rate of $24hr? a. $24.1 b. $28.0 c. $26.4 d. $48.0

c. $26.4

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? a. 20 hours b. 0 hours c. 10 hours d. 5 hours

c. 10 hours

Total Rewards communication goals do all of the following except: a. Reduce entitlement b. Build trust between employer and employee c. Ensure that every employee values their Total Reward package d. Persuades employees to change behaviors and choices.

c. Ensure that every employee values their Total Reward package

Which is not important when evaluating Total Reward changes? a. Culture b. Business Goals c. Human Resource staffing d. Competitor offerings e. Employee Demographics

c. Human Resource staffing

Which is true about compensation? a. Being fairly paid is an important measure. b. It must change annually. c. It is often an emotional issue and tied to perceived self-value. d. It is the most important part of a Total Rewards Package

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

Which is not a federal and state statutory benefit? a. Social Security b. Worker's Comp c. Life Insurance d. Unemployment

c. Life Insurance

Mission is: a. The organization's aspirations and goals. b. Management's belief about the approach to the employee relationship. c. The reason for the organization's existence. d. Values regarding benefit cost sharing.

c. The reason for the organization's existence.

Which regulation prohibits discrimination based on race, color, religion, sex, pregnancy or national origin? a. Equal Pay Act b. Davis Bacon Act c. Title VII of the Civil Rights Act d. Fair Labor Standards Act

c. Title VII of the Civil Rights Act

Which regulation provides rights to military service personnel? a. HIPAA b. FMLA c. USERRA d. COBRA

c. USERRA

A compensation philosophy should do all of the following except: a. Explain what technology programs will be used to manage pay. b. Define the scope of any programs used. c. Look at the balance of internal and external equity. d. Specifically outline pay grades.

d. Specifically outline pay grades.

Which is not a major provision of the FLSA? a. Determination of minimum wage b. Child labor restrictions c. Recordkeeping requirements d. Tax brackets for high earners

d. Tax brackets for high earners

By not following ERISA guidelines, a plan can lose their ____________________________ a. They don't lose anything but they can gain jail time. b. Retirement match c. Ability to offer the plan to employees d. Tax exemption

d. Tax exemption

When designing your benefits plan - which should you not consider? a. The general philosophy of benefits. b. The organizational environment c. The budget d. The impact that the changes will have on your human resources staff

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

When planning a benefit strategy, which is considered an internal force? a. Global economy and labor market. b. US legal environment c. Information revolution d. Unions

d. Unions

What is the formula for calculating midpoint

maximum+minimum/2

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

quantitative and qualitative