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
