Compensation Flashcards
Which examples are considered indirect compensation?
Time Off
Healthcare
Benefits
Which pre-1995 act prohibits employers from paying members of one sex less than members of the opposite sex for performing equal work?
The Equal Pay Act
Background: A factory produces 100,000 lightbulbs of different sizes every day. An employee is paid the same regardless of the number of lightbulbs produced each day.
Question: Which wage payment method does this describe?
Time-rate system
Background: Jesse works for the local electric company with an hourly rate of $20 per hour. Jesse get time and a half for working any hours above 40 per week. During a recent hurricane, Jesse worked 120 hours during a two-week period, with the hours split evenly between the weeks.
Question: What would Jesse’s paycheck be for the last pay period?$
$2,800
Why type of increase to base pay is most common in a unization setting?
Seniority pay increase
Background: Sarah work at a factory that produces parts for air conditioner units and is paid based on the number of switches produced. Sarah is paid $6 for each switch produced in a week under 100 and $10 for switches for over 100. One week produces 150 switches.
Question: How much will Sarah’s paycheck be for that work?
$1100
Which example is not considered direct compensation?
Insurance
What type of differential pay is paid to account for variations in the cost of living between locations?
Geographic-based differential pay
Which pre-1995 act entitles service members to return to the same civilian employer with the seniority status and rate of pay they would have obtained if they were continuously employed?
The Uniform Services Employment and Reemployment Rights Act
Which act prevents an employer from withholding an employee’s pay in exchange for employment and regulates which deductions they are allowed to take out of the employee’s paycheck?
The Copeland Anti-kickback Act
Which type of sales incentive program is used when there are high-volume sales involved?
Straight commission
What is not a payroll domain responsibility?
Performance reviews
What is the normal overtime multiple of the hourly rate?
1.5
Which types of payroll deductions are considered voluntary?
Dental
Medical
Which type of base pay method provides employees with the same rate of pay, regardless of performance or seniority?
Single or flat-rate system
What is a characteristic of an incentive wage system?
It provides minimum guaranteed wages for time and speed to complete work.
Which type of incentive program distributes savings to employers?
Scalon Plans
Which element of the executive compensation package provides special privileges such as a private jet and travel reimbursement.?
Perquisites or perks
Which act was enacted as a reaction to several major corporate accounting scandals such as ENRON and WorldCom?
The Sarbanes-Oxley Act
Background: Charlie works as a server at a local restaurant on the late-night shift. Recently, activity during these hours has slowed, and Charlie has not been making as much in tips as usual. One recent week, Charlie only made $100 in tips.
Question: How much additional wages would Charlie’s employer be responsible for paying based on a 40-hour work week using FLSA tip requirements?
$190
What is an example of a competency-based person-based pay system?
A machine operator cross-trained on a variety of production equipment
Background: Every day, a factory produces 100,000 light bulbs of different sizes. An employee at the factory gets paid the same no matter how many light bulbs they produce each day.
Question: Which wage payment method does this describe?
Time-rate System
What information would a payroll software system normally not provide?
Benefits Enrollment
What is the minimum taxable amount of employer life insurance?
$50,000
