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40 Cards in this Set

  • Front
  • Back

Base Pay Systems:


Employee pay increases are based on merit

Merit

Base Pay Systems:


Pay for employees is calculated based on time or longevity in the position

Time-based step-rate

Base Pay Systems:


All employees are paid the same regardless of their qualifications

Single rate

Base Pay Systems:


An employee gets paid more by producing more units

Productivity

Base Pay Systems:


Employee pay is based on knowledge, skill, and competency

Person
What must be communicated to employees about benefits and compensation programs under ERISA?

- Who is eligible to receive benefits


- The effective dates of benefits


- Whether employees can adjust benefits during the year


- Explaining how to make changes to a benefit


- Explaining when a benefit matures


- Specifying whether dependents are eligible for benefits



What information must employees be made aware of regarding benefits and compensation programs under ERISA?

- When payouts contain employer and employee contributions


- The proportion the employer pays toward benefits


- What happens to employee benefits upon termination of employment


- How an employer notifies employees about changes to a benefit


- When payouts only contain employee contributions


- The form in which benefit surveys are conducted

Compensation regulations:


- Federal contracts must pay prevailing wages for construction contracts over $2,000


-

Davis-Bacon Act 1931

Compensation regulations:


Federal contractors must pay prevailing wages to service providers

Service Contract Act 1936

Compensation regulations:


Federal contractors and subcontractors are prevented from getting employee kickbacks

Copeland "Anti-kickback" Act 1934
Federal contractors must pay, prevailing wages to manufacturers of products
Walsh-Healy Act 1936
What are examples of key provisions under the FLSA employers must follow?

- An employer calculates overtime pay at one-and-one-half times and employee's rate


- An employer adheres to both federal and state minimum wage requirements


- An employee is paid for time spent training on a new software system during work hours

Types of data that must be included in an employee master file

- Tax and payroll data


- Employee's pay rate


- Employee's date of birth


- Form 1099, when applicable


- The employer's quarterly federal tax form


- Org. payroll data


- Marital status of the employee


- Number of hours an employee has worked


- Employee's SSN

Situations where the employee is suitable to be rewarded with extra pay.

- An employee helps clean up a hazardous spill


- An employee is never late for work


- Employees work to exceed a customer's project deadline

Plans that provide qualified deferred compensation

- Benefit plans that use formulas to determine the amount of each employee's benefit


- Plans where benefits are determines using a hypothetical pension account


- Plans that help employees save for education


- Contribution plans where employer and employee pay into the employee's retirement plan


- Plans that allow employees nearing retirement to reduce their working hours.

Plans that provide nonqualified deferred compensation

- Plans that allow some nonprofit orgs to supplement executives' retirement incomes


- Plans that allow participants to defer some of their compensation to a future date


- Plans that provide an additional pension benefit to participants


*NOT*


- Plans that pay all employees, regardless of position the same base rate


- Plans that offer compensation based on the location of the org.

What plans are commonly offered to employees for health care coverage?

- Indemnity plans


- Health maintenance organizations (HMO)


- Preferred provider organizations (PPO)

Formulas used to calculate contributions to defined benefit plans:


- Multiplying 3% of the career-average earnings by each year of service to get the payment


- Paying 4% of each year's earnings



Career-average formula



Formulas used to calculate contributions to defined benefit plans:


- Paying $50 per month for each year of service

Flat-dollar amount



Formulas used to calculate contributions to defined benefit plans:


Paying benefits based on average earnings during a specific ten-year period

Final-pay formua

Tax regulations:


Helps coordinate rules for SIMPLE IRA and 401 (k) plans


- Coordinates rules for 401 (k) plans with rules that generally cover qualified retirement plans

Taxpayer Relief Act (TRA) 1997

Tax regulations:


Allows employees to defer a part of their pretax pay, up to certain limits

Economic Growth and Tax Relief Reconciliation Act (EGTRRA) 2001

Tax regulations:


Reduces compensation limits for retirement programs

Omnibus Budget Reconciliation Act (OBRA) 1993

Tax regulations:


Enacts restrictions for retirement savings

Tax Reform Act 1986

Tax regulations:


Changes rules for 401(k) accounts

Small Business Job Protection Act (SMJPA) 1996

Tax regulations:


Allows employers to offer employees favorable tax treatment regarding health benefits

Revenue Act 1978
What are the steps involved in a benefits program needs assessment?

- Carefully review the organization's strategy


- Closely examine the internal workforce demographics


- Carry out a gap analysis and take necessary corrective actions


- Find out how the current benefits program is used


- Review the organization's approach to total rewards


*NOT*


-Communicate the plan to all employees

- An employee asks a supervisor to clarify how retirement contributions are calculated


- Employees receive detailed information about how their performance will be appraised


- A company uses a third party to provide employee self-service applications

Techniques that ensure employees receives all the information about compensation and benefits programs
What methods are commonly used to gather data for benefits programs needs assessment?

- Using benchmarking to find out what other top organizations are doing


- Using trend analysis to identify patterns over a period of time


- Using questionnaires to gather data from individuals


*NOT*


ROI or cost-benefit

- Provide timely access for FLSA record inspections


- Store records in a secure location

Examples of organizational record keeping requirements under FLSA

- Ensuring an employee is paid for time spent traveling during work hours


- Giving an employee on-and-one-half times the employee's rate for overtimework


- Compensating an employee at $7.25 per hour

Key components of the FLSA
What are the steps required when developing a strategic compensation plan?

- Review the compensation plan at regular intervals


- Perform a cross-impact analysis to assess the impact of interacting trends


- Use strategic methods such as job ranking, grading, or comparing


- Determine how the compensation strategy will follow the labor market and attract employees


- Create the range in salary for each block or grade and an incentive plan


*NOT*


- Develop an org mission statement that reflects the compensation strategy

What techniques help employers communicate all the information employees need about compensation and benefits programs?

- An organization provides detailed information on how the retirement benefit program is structured


- An employee uses a self-service application to access her payroll information


- A supervisor meets with an employee to explain how the FMLA works

Methods to evaluate jobs:


Jobs are compared to similar jobs existing in the industry

Market-based



Methods to evaluate jobs:


Jobs are ordered from highest to lowest vased on their value

Ranking

Methods to evaluate jobs:


Jobs are ranked and mapped to dollar values

Factor comparison

Methods to evaluate jobs:


Jobs are assigned points to form a total score

Point



Methods to evaluate jobs:


Jobs are grouped together based on shared characteristics

Classification
What are some incentive pay plans commonly used to motivate employees?

- Discretionary bonuses


- Shared financial rewards


- Direct cash payments based on performance


*NOT*


- Performance-based pay