Exam Review Guide Chapter 8 Flashcards
Describe differences between various retirement plans
Pension: Not popular because its %100 funded by the company.
401k: The company matches what you put in. You can move this to other companies. Employees can choose where to invest their money, Vesting period is when they are able to touch it “5 year plan”
Retirement age under most plans
There is no retirement age
Four elements necessary to design a compensation strategy
Internal alignment
External competitiveness
Employee contribution
Management of system
Pay Structure
Rate of pay for different work/skills
What are the major components in “total compensation”
Internal alignment
Comparisons of pay and skill level within the organization
External competitiveness
How much do we wish to pay compared to competitors?
Employee contribution
How much should we rely on performance
Management of pay system
How does compensation strategy attain business objectives?
Compensable factor
experience, education
Differences between a wage and a salary
The person receiving a salary is not paid a smaller amount for working fewer hours, nor is he paid more for working overtime. Someone who is paid wages receives a pay rate per hour, multiplied by the number of hours worked.
Job Evaluation (not to be confused with job analysis)
is the process of determining the relative worth of a position
Hayes method
Know how
Problem solving
Accountability
Working conditions
Major provisions of the Affordable Care Act
Employers with 50 employees or more will have to
- Offer health insurance or;
- Pay a fine
Coverage for full time employees
-Law defines full-time as 30 hours or more
What is an exempt employee?
Employees who meet one of the FLSA exemption criteria and who are paid on a fixed salary basis, thus not entitled to overtime.
What are the six categories of exempt employees? Provide examples
Executive
Primary duty is managing
Administrative
Non-manual office work regarding management
Professional
Work requiring knowledge of an advanced field or creative work
Outside Sales
Works away from site
Highly compensated individual
Earns over $100,000 / year
Computer Worker
Must be employed as a computer systems analyst
What benefits are mandatory? (legally mandated)
Workers compensation, unemployment compensation, social security, COBRA benefits, FMLA, ERISA
Which benefits are optional?
Health insurance, life insurance, pension plans/401k, paid holidays and vacations
What are wellness programs?
Company gym
Group fitness
