Employee Compensation Components

Derek is paid $550 per week, but only brings home $375 due to deductions. Which of the following is Derek's net earnings?

• $925

• $550

• $375

• $175

The electronic transfer of wages into an employee's account refers to which of the following?

• Electronic funds wiring

• Direct deposit

• Payroll debit

• Automatic teller

What is a pension plan?

• A form of retirement plan in which employers contribute money to a plan which provides employees a monthly income during retirements

• A type of disability insurance which provides employees a partial salary if they become unable to work due to illness

• A monetary safety net for a beneficiary upon the death of an employee

• A wage replacement program for employees who suffer from job-related injuries

Which of the following is meant to motivate an employee to exceed organizational expectations?

• Paid leave

• Health insurance

• Flexible spending account

• Incentives

What is the difference in a Flexible Spending Account (FSA) and a Health Savings Account (HSA)?

• HSAs belongs to the employee while FSAs belongs to the employer

• HSAs are taxed while FSAs are not

• HSAs are only offered by large corporations while FSAs are offered to employees of small businesses

• HSAs do not allow employers to contribute to the account while an FSAs does

What is the overtime pay rate?

• Time-and-a-half

• Double pay

• Triple pay

• Bonus pay

How often are paycheck stubs provided?

• Every pay period

• Every other pay period

• Quarterly

• Once at the end of the year

Which of the following is NOT considered a mandated deduction?

• Social Security tax

• Federal income tax

• Medicare tax

• Sales tax

Which of the following correctly defines withholding?

• Hire

• Amount of wages which are not included in an employee’s paycheck

• Bonus

• Benefits

Individual designated to receive a sum of money upon the death of a policy holder correctly defines which of the following?

• Beneficiary

• Account holder

• Liable individual

• Insured