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196 Cards in this Set

  • Front
  • Back

Equal Work

Work having equal skills, equal efort, equal responsibility, and similar working conditions, all performed at the same location.
Employee Retirement Income Security Act (ERISA)
Act that established uniform minumum standards for employer-sponsored retirement and health and welfare benefit programs.
457 plans
Plans that allow employees of states, political subdivisions or agencies of states, and certain tax-exempt organizations to defer receipt of wages.
401k Plans
Plans that allow employees to make tax forward pay deferrals toward retirement savings through a payroll deduction plan
Consolidated Omnibus Budget Reconciliation Act (COBRA)
Act that provides individuals and dependents who may lose medical coverage with opportunity to pay to continue coverage.
Exempt employees
Employees who are excluded from FLSA minumum wage and OT pay requirements
Deferred compensation
Plan that provides income to employees at some future time as compensation for work performed now.
403 b plans
Plans that allow employee of certain tax exempt organizations to contribute pretax dollars toward retirement savings
Compensable factors
Reflect the dimensions along which a job is perceived to add value to the organization;used to determine which jobs are worth more than others.
Davis-Bacon Act
Act that established prevailing wage and benefit requirements for contractors on federally funded constructions projects
Copayment
Specified percetnage (typically 20% to 30%) of covered medical expenses that employee pays or fixed dollar amt that covered persons pays each time he or she visits a physicial or purchases prescription drugs
Call-back pay
Pay that employees receive when they are called back for an extra shift in the same workday.
Cliff Vesting
Requires participants to complete a specific number of years of service with an ER before they get any vested benefits, after which they are now 100% vested.
Balance Billing
Practice where an uncontracted medical provider bills a patient for all charges not paid for by the patients insurance plan, even if those charges are above the plans usual customary rate or are considered medically unnecessary.
Copeland "Anti-Kickback" Act
Act that prohibits federal contractors from receiving kickbacks from EEs or subcontractors for wages earned on federal projects.
Deductible
Initial amount of covered medical expenses an individual must pay before receiving paid benefits under a health-care plan.
Commission
Payment made to salespeople, usually calculated as a percentage of sales.
Cost of Living Adjustment (COLA)
Periodic compensation payment given to eligible employees regardless of their performance or organizational profitability; usually linked to inflation.
Capitate health-care plan
Type of health care plan in which the physician is paid on a per capita (per head) basis rather than for actual treatment provided.
Base Pay
Basic compensation an employee receives, usually as a wage or salary.
Consumer-directed health care
Health care options intended to help employers better control costs while allowing employees to make more decisions abut their health care.
Comparable Worth
Concept that states that jobs requiring comparable skills, effort, responsibility, and working conditions filled primarily by women should have the same job classification an salary as similar jobs filled by men.
Cash Balance Plan
Form of defined benefit plan that defines the promised benefit in terms of a hypothetical account balance and features benefit portability.
Benchmark Jobs
Jobs used as reference points when setting up a job classification system and when designing or modifying a pay structure.
Defined benefit plan
Plan that promises employee a retirement benefit amount based on a formula.
General pay increase
Pay increase given to all employees (or a class of ee's such as office or productions workers) based on local competitive market requirements; awarded regardless of employee performance.
Full cafeteria plan
Type of Section 125 plan that allows employees to choose from a menu of benefits and allocate pretax dollars to pay for those benefits.
Flat-Rate pay
Provides each incumbent of a job with the same rate of pay, regardless of performance or seniority; also know as single-rate pay.
Fully insured health-care plan
Health-care plan in which the ER pays a third-party insurance carrier premiums that cover medical charges, administrative costs, sales commissions, taxes, and profits.
Flexible spending account (FSA)
Type of Section 125 plan that allows employees to use pretax dollars to pay for out-of-pocket health and dependent care expenses.
Coordination of benefits
Eliminates the duplication of payments when an employee, spouse, or dependents have health coverage under two or more plans
Family and Medical Leave Act (FMLA)
Act that provides employees with up to 12 weeks of unpaid leave to care for family members or because of a serious health condition of the employee.
Explanation of benefits (EOB)
Written statement provided by an insurance provider indicating what portion of a benefit claim was paid to the health-care provider and what portion of the payment, if any, the individual is responsible for.
Excess group-term life insurance
Amount of Employer-provided group-term life insurance over 50K.
Emloyees
Workers who are covered by Fair Labor Standards Act regulations as determined by the IRS.
Coverdell Education Savings Account (ESA)
Trust created exclusively for the purpose of paying the qualified education expenses of a designated beneficiary.
Preferred Provider Organizations (PPO)
Formed by an insurance company, an employer, or a group of ERs who negotiate discounted fees with networks of health are providers; in return, the ERs guarantee a certain volume of patients.
Simplified Employee Pension (SEP)
Tax-deferred account to which the self-employed and employees of very small businesses can contribute.
Severance Package
Sets of benefits provided to employees who are terminated for some reason other than cause.
Self-funded health-care plan
Health-care plan in which the employer takes on the role of the insurance company and assumes some or all of the risk.
Salary compression
Occurs when there is only a small difference in pay between employees regardless of their skills, experience or seniority; also know as pay compression
Revenue rulings
Rulings published by the IRS as general guidelines to all taxpayers or organizations
Red-circle rates
Describe situations where employees pay is above the range maximum.
Qualified domestic relations orders (QDROs)
Create or recognize the right of an alternative payee to receive all or a portion of the benefits under a retirement plan.
Productivity-based pay
Pay based on the quantity of work and outputs that can be accurately measured.
Premium Pay
Extra pay for working holidays or vacation days.
Single-rate pay
Provide each incumbent of a job with the same rate of pay, regardless of performance or seniority; also known as flat-rate pay.
Shift Pay
Supplemental pay paid to employees who work less-desirable hours, such as second or third shifts.
Seniority
System that shows preference to employees with the longest service.
Savings Incentive Match Plan for Employees (SIMPLE)
Retirement plan by which employees can contribute each year to a 401k plan or IRA
Roth 401K/403b plans
Plans that allow after-tax contributions to existing 401k or 403b plans
Emergency Shift pay
Extra pay that employees receive when they are called into work during and emergency (e.g., a power outage)
Compa-ratio
Pay rate divided by the midpoint of the pay range.
Clawback provision
Allows a publicly traded company to take back previous executive incentive-based compensation in specific circumstances.
Broadbanding
Combining several salary grades or job classifications with narrow pay ranges into one band with a wider salary spread.
529 plan
Qualified tuition plan that provides families a federal tax-free way to save money for college.
Golden parachutes
Clauses written into executive contracts that provide special payments to key executives who might lose their position or be otherwise disadvantaged if another organization took control through a merger or acquisition; also know as parachutes.
Gatekeeper
Individual, usually a primary-care physician, who is given control of patient access to specialists and services in a managed care organization.
Frequency table
Shows the number of people or organizations associated with data organized in a frequency distribution.
Financial Accounting Standards Board (FASB)
Private, not-for-profit body that decides how public financial executives should report their firms financial information to their shareholders.
Factor comparison method
Job comparison method that ranks each job by each selected compensable factor and then identifies dollar values to develop a pay rate.
Draw
Amount advanced on future commissions
Defined Contribution Plan
Plan in which the employer and sometimes the employee make an annual payment to the employees retirement plan account.
Graded Vesting
System by which qualified retirement plan participants become incrementally vested over a period of years of service.
International Social Security Agreements
Bilateral social security agreements that coordinate the US social security program with the comparable programs of other countries; also know as totalization agreements.
Performance -based pay
Situation where an individuals performance is the basis for the amount and timing of pay increases also called merit pay.
Reasonable and customary
Reimbursement standard used by insurance companies to determine how much providers should be paid for their services.
Qualified deferred compensation plan
Retirement benefit offered to all employees in the organization; provides tax advantages and is protected under Employee Retirement Income Security Act.
Private-letter rulings
Rulings issued by the IRS to specific taxpayers or organizations that request interpretation of the law
Fair Labor Standards Act (FLSA)
Act that regulates employee status, overtime pay, child labor, minimum wage, record keeping, and other administrative concerns.
Experience Rating
Rating system that bases insurance rates on claims history.
Reporting pay
Pay provided to employees who report for work as scheduled but then find that no work is available.
Qualifying event
Under COBRA, an event, such as termination for reasons other than gross misconduct, that allows employees to continue their group health-care coverage for a specific period of time.
Profit Sharing plan
Plans that distribute a portion of an organizations profits to its employees.
Premium Sharing
Situation in which employee pays a portion of the required monthly premium for health care coverage.
Work Opportunity Tax Credit (WOTC)
Tax credit to encourage employers to hire people from targeted groups.
Vesting
Process by which a retirement benefit becomes nonforfeitable.
Excess deferral plans
Nonqualified deferred compensation plans that provide benefits to selected management or highly compensated employees beyond Section 415 limitations.
Employee stock-ownership plan (ESOP)
Stock plan structured as a form of ERISA-governed qualified retirement plan.
Direct compensation
Pay that is received by an employee, including base pay, differential pay, and incentive pay.
Gross earnings
Total earnings before taxes; include regular wages plus additional earnings such as tips, bonuses, and overtime pay.
Golden handcuffs
System of overlapping short-and long-term incentives to make it less likely that key employees will leave an organization.
Gainsharing plans
Group incentives where a portion of the gains an organization realizes from group efforts is shared with the group.
Frequency Distribution
Listing of grouped data, from lowest to highest.
Fee-for-services health-care plan
Full choice health care plan that allows covered employees to go to any qualified physical or hospital and submit claims to the insurance company; also known as indemnity health-care plan.
External equity
When an organizations pay rates are at least equal to market rates.
Exclusive provider organization (EPO)
Plan in which participants must use providers in the network of coverage or no payment will be made.
Equal Pay Act (EPA)
Act that prohibits wage discrimination by requiring equal pay for equal work.
Employee Commuting Flexibility Act
Amendment to the Portal-to-Portal Act; clarifies that commuting time is not paid working time.
Dodd-Frank Wall Street Reform and Consumer Protection Act
Law that calls for fundamental changes in executive compensation disclosure, compensation committee independence, shareholder voting rights, and clawback provisions in publicly traded companies.
Lump-sum increase (LSI)
One-time payment made to an employee; also called performance bonus.
Lifetime maximum benefit
Maximum dollar amount of covered medical expenses that a health-care plan will pay on behalf of any covered person during that persons lifetime.
Involuntary deductions
Payroll deductions such as tax levies and court-ordered child support that an employee must pay.
Indirect compensation
Compensation commonly referred to as benefits
Hourly wage
Form of base pay that is dependent on the number of hours worked.
Health maintenance organizations (HMOs)
Form of health care that provides services for a fixed period on a prepaid basis.
Group-term life insurance
Form of insurance carried by employers for their employees that provides a lump-sum payment to the employees beneficiaries.
Managed care
General term for a medial plan that seeks to ensure that the treatments a person receives are medically necessary and provided in a cost-effective manner.
Line of sight
Concept that states that employees must be able to influence the attainment of a goal and see a direct result of their efforts in order for incentive pay plans to be effective.
Job classification
Evaluation method that groups jobs into a predetermined number of grades or classifications, each having a class description to use for job comparisons.
Unemployment Compensation Amendments (UCA)
Imposed a mandatory 20% federal income tax withholding requirement on most qualified retirement plan proceeds that a recipient does not roll over into another qualified retirement plan or individual retirement account.
Total rewards
All forms of financial and nonfinancial returns that employees receive from their employers.
Taxpayer Relief Act (TRA)
Act that created tax-advantaged savings mechanisms.
Supplemental unemployment benefits (SUB)
Benefits paid to unemployed workers beyond required government unemployment benefits.
Small Business Job Protection Act (SBJPA)
Act that made changes to rules regarding the ability of tax-exempt organizations to institute retirement plans modeled after 401k and IRA accounts and to the definition of highly compensated employees
Workers compensation
State insurance program designed to protect workers in cases of work-related injuries or diseases.
Voluntary deductions
Payroll deductions selected by the employee such as charitable contributions.
Unemployment insurance
Mandatory benefit program set up as part of the Social Security Act designed to provide employees with some income when they lose their jobs through no fault of their own.
Totalization agreements
Bilateral social security agreements that coordinate the US Social Security program with the comparable programs of other countries; also known as international social security agreements.
Time-based differential pay
Pay rates that are affected by when an employee works
Supplemental wages
Pay beyond base salary or wages such as bonuses and commissions.
Social Security
Social Security Administration program that provides retirement, disability, death, and survivors benefits.
Work-related disability
Physical condition (accident or illness) that is caused, aggravated, precipitated, or accelerated by work activity or the work environment.
Individual retirement accounts (IRAs)
Tax deferred accounts to which wage earners can contribute an amount up to a yearly maximum.
In loco parentis
"In place of a parent"; term used in expansion of FMLA coverage to employees who stand in place of a parent with day to day responsibilities to care for and financially support a child or who have a day to day responsibility to care for or financially support a person who stood in loco parentis for them.
Health reimbursement account (HRA)
Employer-funded plan that reimburses employees only for eligible and substantiated health-care expenses.
Hazard pay
Pay earned by employees who work in an environment that is considered more risky from a safety or health point of view.
Market-based evaluation
Method similar to job evaluation systems that evaluates jobs based upon their market value.
Long-term care insurance
Insurance coverage that provides a daily monetary benefit to people who are chronically ill and who require living assistance either at home or in a residential facility.
Job evaluation
Systematic determination of the relative worth of jobs within an organziations
Internal equity
Occurs when people feel that performance or job differences result in corresponding differences in pay rates.
Incentive pay
Form of direct compensation where employers pay for performance beyond normal expectations to motivate employes to perform at higher levels
Health Savings Account (HSA)
Tax-sheltered savings account similar to an IRA but created primarily to pay for medical expenses.
Health Insurance Portability and Accountability Act (HIPAA)
Act that made changes to improve health-care coverage portability and accessibilty and provide medical record privacy and security
Maturity Curves
Correlate pay with time spent in a professional field such as teaching or research.
Long-term disability (LTD) coverage
Replaces a portion of employees lost income after short-term disability coverage ends.
Job ranking
Evaluation method that establishes a hierarchy of jobs from lowest to highest based on overall importance to the organization.
Indemnity health-care plan
Full-choice health care plan that allows covered employees to go to any qualified physician or hospital and submit claims to the insurance company; also known as fee for service health care plan.
Highly compensated employee (HCE)
Determined by an array of issues such as business ownership and /or salary.
Health insurance purchasing cooperative (HIPC)
Purchases health care plans for large groups of employers to provide small organizations the economic advantages large organizations have.
Physician hospital organizations (PHOs)
Consist of hospital and physician practices that merge into vertically integrated structures.
Pay Surveys
Collect information on prevailing market rates and include topics such as incentive plans, overtime pay and base pay.
Parachutes
Clauses written into executive contracts that provide special payments to key executives who might lose their position or be otherwise disadvantaged if another organization took control through a merger or acquisition; also known as golden parachutes.
Out-of-pocket maximum
Stated amount out of pocket the insured can pay for medical costs in a 12 month period before copayments end.
Nonqualified deferred compensation plan
Income deferral benefit offered to a select group of management or highly compensated employees in the organization.
Money purchase plans
Plans in which employers make mandatory payments (a fixed percentage of an eligible employees compensation) to a retirement plan.
Mental Health Parity Act (MHPA)
Act that addresses parity between mental health benefits and medical benefits.
Medical tourism
Involves traveling to hospitals and health-care providers that are outside an employers local area or network; also called medical travel.
Point-factor method
Most commonly used method of job evaluation; involves using specific factors to evaluate job worth.
Performance-sharing plans
Organization-wide incentive plans in which funds are made available for incentive awards based on predetermined criteria and standards.
Pension Benefit Guaranty Corporation (PBGC)
Set up by ERISA to insure payment of benefits in the event that a private-sector defined benefit pension plan terminates with insufficient funds to pay the benefits.
Pay compression
Occurs when there is only a small difference in pay between employees regardless of their skills, experience, or seniority; also know as salary compression.
Overtime pay
Required for nonexempt workers funder FLSA at 1.5 times the regular rate of pay for hours over 40 in a workweek.
Older Worker's Benefit Protection Act (OWBPA)
Act that amended ADEA to include all employee benefits; also provided terminated employees with time to consider group termination or retirement programs and consult an attorney.
Multinational enterprises (MNEs)
Organizations with operations in multiple countries.
Merit Pay
Situation where an individuals performance is the basis for the amount and timing of pay increases; also called performance-based pay.
Point of service (POS) organizations
Combination of a PPO and HMO; provide direct access to specialists.
Perquisites
Special privileges for executives that are usually noncash items.
Pension Protection Act (PPA)
Act that changed the laws that affect defined benefit plans, defined contribution plans individual retirement accounts, and other issues related to retirement planning
Pay grades
Used to group jobs that have approximately the same relative internal or external worth and are paid at the same rate or within the same pay range.
Paid-time-off (PTO) bank
Large bank of time comprising all of an employees paid time off (i.e. vacation, sick, leave and holidays) that the employee can use as he or she sees fit.
Omnibus Budget Reconciliation Act (OBRA)
Act that reduced compensation limits in qualified retirement programs.
Nonduplication of benefits
In health plans, requires a secondary carrier to reimburse only up to the level of reimbursement the primary carrier would have paid.
Minimum wage
Minimum hourly amount, determined by Congress, that nonexempt employees can be paid.
Medicare carve-out
Health plan where benefits are reduced for employees eligible for Medicare; Medicare becomes the primary provider.
Portal-to-Portal Act
Act that defines what is included as hours worked as is therefore compensable and a factor in calculating overtime.
Person-based pay
Pay systems in which employee characteristics rather than the job, determine pay.
Performance bonus
One-time payment made to an employee; also called a lump-sum increase (LSI)
Pay ranges
Set the upper and lower bounds of possible compensation for individuals whose jobs fall in a pay grade.
Medicare
Social Security Administration program that provides medical care for people after age 65
Paired-comparison method
Job ranking method in which evaluator compares each job with every other job being evaluated.
Walsh-Healey Act
Act that extended concept of prevailing wage to employers who manufacture or supply goods under government contracts and required time and a half.
Unweighted average
Raw average of data that gives equal weight to all factors, with no regard to individual factors such as the number of incumbents or organizations.
Travel Pay
Typically paid to nonexempt workers for the time they spend traveling to or between work assignments.
Time-based step-rate pay
System in which pay is based on longevity in the job and pay increases occur on a predetermined schedule.
Tax Reform Act
Act that made significant changes in employee benefits programs, especially retirement plans.
Stop-loss coverage
Insurance policy that protects employers with partially self-funded insurance plans by limiting individuals and group-wide claims.
Workweek
Any fixed, recurring period of 168 consecutive hours ( 7 days times 24 hours =168 hours).
Weighted average
Average of data that takes other factors such as the number of incumbents into account.
Utilization review
Audit of health-care use and charges to identify which benefits are used and to make certain that care is necessary and costs are in line.
Underwater
Describes a stock option when the stocks current market value is less than the options exercise price.
Top hat plan
Nonqualified deferred compensation plan that provides retirement benefits to select group of management or highly compensated employees.
Taxable wages
All remuneration for services (including noncash benefits) that is taxable when paid.
Economic Growth and Tax Relief Reconciliation Act (EGTRRA)
Act that adjusts minimum vesting schedules, increases retirement plan compensation and contribution limits, permits catchup contributions by participants age 50 or older in certain retirement plans, and modifies distribution and rollover rules.
Differential pay
Pay that is based on when the employee works (e.g., overtime pay, shift pay differentials) or where the employee works.
Green-circle rates
Situation where an employees pay is below the minimum of the range.
Geographic differential pay
Pay based on where an employee works
On-call pay
Pay that employees receive when they can be called in to work but are not working before receiving the call to return to work.
Nonexempt employees
Employees covered under FLSA regulations, including minimum wage and overtime pay requirements.
Modified-duty programs
Offered to employees who are on leave for injuries under FMLA; job tasks are modified to meet the employees restrictions.
Medicare supplement
Health plan that covers specific expenses not covered by Medicare.
Short-term disability (STD) coverage
Replaces a portion of lost income for a specified period of time for employees who are ill or have nonwork-related injuries.
Serious health condition
As defined in DOL regulations, a condition that involves employee incapacity for more than three calendar days plus "two visits to a health care provider"
Section 125 benefit plans
Written benefit plans maintained by the employer that allow employees to use pretax dollars to pay for certain qualified benefits.
Roth IRA
Account providing tax-free income growth; contributions are made with after tax dollars.
Retirement Equity Act (REA)
Act that provided certain legal protections for spousal beneficiaries of qualified retirement plans.
Rabbi trust
Grantor trust designed to segregate nonqualified deferred compensation benefits from an employers general accounts.
Prudent person rule
States that an ERISA plan fiduciary has legal and financial obligations not to take more risks when investing employee benefit program funds than a reasonably knowledgeable, prudent investor would under similar circumstances.
Premium-only plan (POP)
Type of Section 125 plan that allows employees to pay for certain qualified benefits with pretax dollars
Preexisting conditions
Medical conditions that existed before a health care policy is taken out.
Sick leave
Specified period of time during which employees who are ill or have nonwork-related injuries receive their full salary.
Service Contract Act
Act that extended prevailing wage rate and benefit requirements to employers providing services under federal government contracts.
Securities and Exchange Act
Act that regulated "insider trading'
Salary
Uniform amount of money paid to a worker regardless of how many hours are worked.
Revenue Act
Act that added Sections 125 and 401k to the Tax code
Sunset Clause
Identified time period and ending point in incentive pay plans