Compensation

Question 1

Which examples are considered indirect compensation?

Answer 1

Time Off
Healthcare
Benefits

Question 2

Which pre-1995 act prohibits employers from paying members of one sex less than members of the opposite sex for performing equal work?

Answer 2

The Equal Pay Act

Question 3

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?

Answer 3

Time-rate system

Question 4

Background: Jesse works for the local electric company with an hourly rate of $20 per hour. Jesse get time and a half for working any hours above 40 per week. During a recent hurricane, Jesse worked 120 hours during a two-week period, with the hours split evenly between the weeks.
Question: What would Jesse’s paycheck be for the last pay period?$

Answer 4

$2,800

Question 5

Why type of increase to base pay is most common in a unization setting?

Answer 5

Seniority pay increase

Question 6

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?

Answer 6

$1100

Question 7

Which example is not considered direct compensation?

Answer 7

Insurance

Question 8

What type of differential pay is paid to account for variations in the cost of living between locations?

Answer 8

Geographic-based differential pay

Question 9

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?

Answer 9

The Uniform Services Employment and Reemployment Rights Act

Question 10

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?

Answer 10

The Copeland Anti-kickback Act

Question 11

Which type of sales incentive program is used when there are high-volume sales involved?

Answer 11

Straight commission

Question 12

What is not a payroll domain responsibility?

Answer 12

Performance reviews

Question 13

What is the normal overtime multiple of the hourly rate?

Answer 13

1.5

Question 14

Which types of payroll deductions are considered voluntary?

Answer 14

Dental
Medical

Question 15

Which type of base pay method provides employees with the same rate of pay, regardless of performance or seniority?

Answer 15

Single or flat-rate system

Question 16

What is a characteristic of an incentive wage system?

Answer 16

It provides minimum guaranteed wages for time and speed to complete work.

Question 17

Which type of incentive program distributes savings to employers?

Answer 17

Scalon Plans

Question 18

Which element of the executive compensation package provides special privileges such as a private jet and travel reimbursement.?

Answer 18

Perquisites or perks

Question 19

Which act was enacted as a reaction to several major corporate accounting scandals such as ENRON and WorldCom?

Answer 19

The Sarbanes-Oxley Act

Question 20

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?

Answer 20

$190

Question 21

What is an example of a competency-based person-based pay system?

Answer 21

A machine operator cross-trained on a variety of production equipment

Question 22

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?

Answer 22

Time-rate System

Question 23

What information would a payroll software system normally not provide?

Answer 23

Benefits Enrollment

Question 24

What is the minimum taxable amount of employer life insurance?

Answer 24

$50,000

Question 25

What is the piece rate for an employee who earns $500 to produce 100 pieces of a product?

Answer 25

$5

Question 26

Which element of an executive compensation package is typically a deferred compensation plan or a stock-base plan?

Answer 26

Long-term incentive

Question 27

What minimum hourly rate can employers pay tipped employees, assuming they can take the maximum allowable tip credit?

Answer 27

$2.13

Question 28

Which law provides minimum standards related to minimum wage, overtime pay eligibility, and child labor for full-time and part-time employees of employers with at least $500,000 in gross sales?

Answer 28

The Fair Labor Standards Act

Question 29

Which statement best describes the green circle pay variations?

Answer 29

Rates are below the minimum range

Question 30

Background: A company provides profit sharing to it employees each year if company profits are over $1 million. One year, the company has a profit of $10 million, and the board of directors decides that each employee will receive a profit-sharing payment of 1 month’s salary, payable at the end of the year.
Question: Which type of profit-sharing incentive is being authorized in this example?

Answer 30

Discretionary

Question 31

What is not an example of a cash award?

Answer 31

A trip

Question 32

Question: A bakery has three daily shifts. Anyone working the 12 a.m. to 7 a.m. shift receives $2 more per hour than the 7 a.m. to 4 p.m. shift. What is this type of differential pay called?

Answer 32

Time-based differential pay