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40 Cards in this Set
- Front
- Back
Base Pay Systems: Employee pay increases are based on merit |
Merit
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Base Pay Systems: Pay for employees is calculated based on time or longevity in the position |
Time-based step-rate
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Base Pay Systems: All employees are paid the same regardless of their qualifications |
Single rate
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Base Pay Systems: An employee gets paid more by producing more units |
Productivity
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Base Pay Systems: Employee pay is based on knowledge, skill, and competency |
Person
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What must be communicated to employees about benefits and compensation programs under ERISA?
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- 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 |
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What information must employees be made aware of regarding benefits and compensation programs under ERISA?
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- 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 |
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Compensation regulations: - Federal contracts must pay prevailing wages for construction contracts over $2,000 - |
Davis-Bacon Act 1931
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Compensation regulations: Federal contractors must pay prevailing wages to service providers |
Service Contract Act 1936
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Compensation regulations: Federal contractors and subcontractors are prevented from getting employee kickbacks |
Copeland "Anti-kickback" Act 1934
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Federal contractors must pay, prevailing wages to manufacturers of products
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Walsh-Healy Act 1936
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What are examples of key provisions under the FLSA employers must follow?
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- 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 |
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Types of data that must be included in an employee master file
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- 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 |
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Situations where the employee is suitable to be rewarded with extra pay.
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- An employee helps clean up a hazardous spill - An employee is never late for work - Employees work to exceed a customer's project deadline |
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Plans that provide qualified deferred compensation
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- 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. |
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Plans that provide nonqualified deferred compensation
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- 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. |
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What plans are commonly offered to employees for health care coverage?
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- Indemnity plans - Health maintenance organizations (HMO) - Preferred provider organizations (PPO) |
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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 |
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Formulas used to calculate contributions to defined benefit plans: - Paying $50 per month for each year of service |
Flat-dollar amount |
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Formulas used to calculate contributions to defined benefit plans: Paying benefits based on average earnings during a specific ten-year period |
Final-pay formua
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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
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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
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Tax regulations: Reduces compensation limits for retirement programs |
Omnibus Budget Reconciliation Act (OBRA) 1993
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Tax regulations: Enacts restrictions for retirement savings |
Tax Reform Act 1986
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Tax regulations: Changes rules for 401(k) accounts |
Small Business Job Protection Act (SMJPA) 1996
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Tax regulations: Allows employers to offer employees favorable tax treatment regarding health benefits |
Revenue Act 1978
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What are the steps involved in a benefits program needs assessment?
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- 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 |
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- 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
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What methods are commonly used to gather data for benefits programs needs assessment?
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- 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 |
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- Provide timely access for FLSA record inspections - Store records in a secure location |
Examples of organizational record keeping requirements under FLSA
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- 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
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What are the steps required when developing a strategic compensation plan?
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- 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 |
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What techniques help employers communicate all the information employees need about compensation and benefits programs?
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- 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 |
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Methods to evaluate jobs: Jobs are compared to similar jobs existing in the industry |
Market-based |
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Methods to evaluate jobs: Jobs are ordered from highest to lowest vased on their value |
Ranking
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Methods to evaluate jobs: Jobs are ranked and mapped to dollar values |
Factor comparison
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Methods to evaluate jobs: Jobs are assigned points to form a total score |
Point |
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Methods to evaluate jobs: Jobs are grouped together based on shared characteristics |
Classification
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What are some incentive pay plans commonly used to motivate employees?
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- Discretionary bonuses - Shared financial rewards - Direct cash payments based on performance *NOT* - Performance-based pay |
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