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100 Cards in this Set
- Front
- Back
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Clauses written into executive contracts that provide special payments to key executives who might lose their position or be otherwise disadvantaged if another company took control of the organization through a merger or acquisition; also known as parachutes.
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Golden parachutes
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Act that defines what is included as hours worked and is therefore compensable and a factor in calculating overtime.
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Portal-to-Portal Act
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Occurs when people feel that performance or job differences result in corresponding differences in pay rates.
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Internal equity
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Act that amended Age Discrimination in Employment Act to include all employee benefits; also provided terminated employees with time to consider group termination or retirement programs and consult an attorney.
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Older Worker's Benefit Protection Act (OWBPA)
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Employees covered under FLSA regulations, including overtime pay requirements.
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Nonexempt employees
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Plans in which employers make mandatory payments (a fixed percentage of an eligible employee's compensation) to a retirement plan.
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Money purchase plans
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Formed by an insurance company, an employer, or a group of employers who negotiate discounted fees with networks of health-care providers; in return, the employers guarantee a certain volume of patients.
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Preferred provider organizations (PPOs)
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System that shows preference to employees with the longest service.
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Seniority
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Act that provided certain legal protections for spousal beneficiaries of qualified retirement plans.
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Retirement Equity Act (REA)
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Pay provided to employees who report for work as scheduled but then find that no work is available.
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Reporting pay
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Health-care plan in which the employer assumes the role of the insurance company and assumes some or all of the risk.
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Self-insured health-care plan
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Act that adjusts minimum vesting schedules, increases retirement plan compensation and contribution limits, permits catch-up contributions by participants age 50 or older in certain retirement plans, and modifies distribution and rollover rules.
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Economic Growth and Tax Relief Reconciliation Act (EGTRRA)
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Act that established uniform minimum standards for employer-sponsored retirement and health and welfare benefit programs.
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Employee Retirement Income Security Act (ERISA)
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Plan in which the employer and sometimes the employee make an annual payment to the employee's retirement plan account.
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Defined contribution plan
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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.
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Unemployment insurance
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Set the upper and lower bounds of possible compensation for individuals whose jobs fall in a pay grade.
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Pay ranges
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Method similar to job evaluation systems that evaluates jobs based upon their market value.
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Market-based evaluation
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Total earnings before taxes; include regular wages plus additional earnings such as tips, bonuses, and overtime pay.
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Gross earnings
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Situation in which employee pays a portion of the required monthly premium for health-care coverage.
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Premium sharing
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Form of base pay that is dependent on the number of hours worked.
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Name the Following Term
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Form of base pay that is dependent on the number of hours worked.
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Hourly wage
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Clauses written into executive contracts that provide special payments to key executives who might lose their position or be otherwise disadvantaged if another company took control of the organization through a merger or acquisition; also known as golden parachutes.
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Parachutes
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Retirement plan by which employees can contribute each year to a 401(k) plan or IRA.
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Savings Incentive Match Plan for Employees (SIMPLE)
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State insurance program designed to protect workers in cases of work-related injuries or diseases related to workers' employment.
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Workers' compensation
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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 indemnity health-care plan.
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Fee-for-service health-care plan
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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.
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Line-of-sight
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Reflect the dimensions along which a job is perceived to add value to the organization; these factors are used to determine which jobs are worth more than others.
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Compensable factors
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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.
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Prudent person rule
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System of overlapping short- and long-term incentives to make it less likely that key employees will leave a company.
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Golden handcuffs
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All remuneration for services (including noncash benefits) that is taxable when paid.
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Taxable wages
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Extra pay that employees receive when they are called into work during an emergency (e.g., a power outage).
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Emergency-shift pay
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Pay that employees receive when they are on call but not actually working.
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On-call pay
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Job ranking method in which evaluator compares each job with every other job being evaluated.
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Paired-comparison method
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Requires participants to complete a specific number of years of service with an employer before they get any vested benefits, after which they are 100% vested.
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Cliff vesting
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Requires administrators of defined contribution plans to provide notice of covered blackout periods; provides whistleblower protection for employees.
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Sarbanes-Oxley Act (SOX)
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Provides each incumbent of a job with the same rate of pay, regardless of performance or seniority; also known as flat-rate pay.
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Single-rate pay
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Create or recognize the right of an alternative payee to receive all or a portion of the benefits under a retirement plan.
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Qualified domestic relations orders (QDROs)
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Pay rates that are affected by when an employee works.
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Time-based differential pay
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Payroll deductions such as tax levies and court-ordered child support that an employee must pay.
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Involuntary deductions
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Correlate pay with time spent in a professional field such as teaching or research.
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Maturity curves
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Plans that allow employees of states, political subdivisions or agencies of states, and certain tax-exempt organizations to defer receipt of wages.
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457 plans
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Type of Section 125 plan that allows employees to choose from a menu of benefits and allocate pretax dollars to pay for those benefits.
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Full cafeteria plan
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Social Security Administration program that provides retirement, disability, death, and survivor's benefits.
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Social Security
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Basic compensation an employee receives, usually as a wage or salary.
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Base pay
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Act that established prevailing wage and benefit requirements for contractors on federally funded construction projects.
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Davis-Bacon Act
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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.
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Utilization review
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Account providing tax-free income growth; contributions are made with after-tax dollars.
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Roth IRA
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One-time payment made to an employee; also called a lump-sum increase (LSI).
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Performance bonus
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Companies that conduct business and have offices in a number of different countries.
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Multinational companies (MNCs)
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Plan that provides income to employees at some future time as compensation for work performed now.
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Deferred compensation
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Plan in which participants must use providers in the network of coverage or no payment will be made.
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Exclusive provider organization (EPO)
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Tax-sheltered savings account similar to an IRA but created primarily to pay for medical expenses.
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Health savings account (HSA)
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Tax-deferred account to which the self-employed and employees of very small businesses can contribute.
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Simplified Employee Pension (SEP
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Grantor trust designed to segregate nonqualified deferred compensation benefits from an employer's general accounts.
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Rabbi trust
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Raw average of data that gives equal weight to all factors with no regard to individual factors such as the number of incumbents or companies.
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Unweighted average
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Purchases health-care plans for large groups of employers to provide small businesses the economic advantages large companies have.
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Health insurance purchasing cooperative (HIPC)
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Qualified tuition plans that provide families a federal tax-free way to save money for college.
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529 plans
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Act that created tax-advantaged savings mechanisms.
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Taxpayer Relief Act (TRA)
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Systematic determination of the relative worth of jobs within an organization.
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Job evaluation
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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.
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Long-term care insurance
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Replaces a portion of lost income for a specified period of time for employees who are ill or have nonwork-related injuries.
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Short-term disability (STD) coverage
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Act that added Sections 125 and 401(k) to the Tax Code.
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Revenue Act
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Act that extended prevailing wage rate and benefit requirements to employers providing services under federal government contracts.
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Service Contract Act
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Act that reduced compensation limits in qualified retirement programs.
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Omnibus Budget Reconciliation Act (OBRA)
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Refers to supplemental pay paid to employees who work less-desirable hours, such as second or third shifts.
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Shift pay
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Refers to supplemental pay paid to employees who work less-desirable hours, such as second or third shifts.
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Shift pay
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Jobs used as reference points when setting up a job classification system and when designing or modifying a pay structure.
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Benchmark jobs
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Payroll deductions selected by the employee such as charitable contributions.
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Voluntary deductions
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Bilateral social security agreements that coordinate the U.S. Social Security program with the comparable programs of other countries; also known as international social security agreements.
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Totalization agreements
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Pay based on the quantity of work and outputs that can be accurately measured.
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Productivity-based pay
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Act that changes the laws that affect defined benefit plans, defined contribution plans, individual retirement accounts, and other issues related to retirement planning.
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eFlashcards for Module 4
Pension Protection Act (PPA) |
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Pay systems in which employee characteristics, rather than the job, determine pay.
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Person-based pay
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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.
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Family and Medical Leave Act (FMLA)
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Situation where an employee's pay is below the minimum of the range.
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Green-circle rates
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Stated amount out of pocket the insured can pay for medical costs in a 12-month period before copayments end.
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Out-of-pocket maximum
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Pay level divided by the midpoint of the pay range.
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Compa-ratio
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Monthly benefits paid under Social Security to workers (and eligible dependents) younger than the Social Security retirement age if they have a disability.
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Disability benefits
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Situation where an individual's performance is the basis for either the amount or timing of pay increases; also called merit pay.
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Performance-based pay
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Nonqualified deferred compensation plans that provide benefits to selected management or highly compensated employees beyond Section 401 or 415 limitations.
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Excess deferral plans
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Nonqualified deferred compensation plan that provides retirement benefits to select group of management or highly compensated employees.
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Top hat plan
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Group incentives where a portion of the gains an organization realizes from group efforts is shared with the group.
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Gainsharing plans
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Set of benefits provided to employees who are terminated for some reason other than cause.
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Severance package
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Medical conditions that existed before a health-care policy is taken out.
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Preexisting conditions
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Point-factor job evaluation system; also known as the Hay Plan.
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Guide Chart-Profile
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Form of insurance carried by employers for their employees that provides a lump-sum payment to the employees' beneficiaries.
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Group-term life insurance
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In health plans, requires a secondary carrier to reimburse only up to the level of reimbursement they would have paid.
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Nonduplication of benefits
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Uniform amount of money paid to a worker regardless of how many hours are worked.
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Salary
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Minimum hourly amount, determined by Congress, that nonexempt employees can be paid.
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Minimum wage
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Determined by an array of issues such as business ownership (employee owns more than 5% of the firm) and/or salary.
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Highly compensated employee (HCE)
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Specified period of time during which employees who are ill or have nonwork-related injuries receive their full salary.
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Sick leave
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Private body that decides how financial executives should report their firms' financial information to their shareholders.
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Financial Accounting Standards Board (FASB)
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Shows the number of people or organizations associated with data organized in a frequency distribution.
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Frequency table
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Pay that is received by an employee, including base pay, differential pay, and incentive pay.
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Direct compensation
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Monthly benefits paid under Social Security to eligible dependents of deceased workers.
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Survivor's benefits
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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.
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Pension Benefit Guaranty Corporation (PBGC)
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Instrument that measures change over time for costs of a group of goods and services.
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Consumer price index (CPI)
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System by which qualified retirement plan participants become incrementally vested over a period of years of service.
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Graded vesting
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Form of defined benefit plan that defines the promised benefit in terms of a hypothetical account balance and features benefit portability.
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Cash balance plan
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Extension Act
Act that amends Work Opportunity Tax Credit to reduce employer federal tax liability. |
Tax and Trade Relief Extension Act
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Form of health care that provides services for a fixed period on a prepaid basis.
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Health maintenance organizations (HMOs)
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