Compensation

(a)   is a systematic approach to providing monetary value to employees in exchange for work performed

Choose below do you think are the objectives of compensation.

​ ​ ​ ​

• To recruit and retain employees
• To increase of maintain the morale
• To determine basic wage and salary
• To reward for job performance

True or False: Compensation is an integral part of human resource management which helps in motivating employees and improve organizational efficiencies.

• True

• False

Answer explanation

to improve organizational effectiveness

The following are the importance of compensation, except?

• Attract talent

• Image building

• Ensure Equality

• Reward valued behavior

True or False: Direct compensation refers to the monetary benefits offered and provided to employees in return of the services they provide to the organization

• True

• False

True or False: Following all the Philippines’ compensation laws means your company will stay compliant,
and providing a reasonable benefits plan will attract the best employees to your open positions.

• True

• False

Answer explanation

Providing competitive benefits plan

True or False: An important part of dispersing benefits is also giving out supplemental benefits that aren’t required but are generally expected by employees.

• True

• False

True or False: Many employers choose to give housing, transportation, and medical allowances, which are tax-deductible if they are not classified as a cost of living allowance.

• True

• False

Answer explanation

Many employers choose to give housing, transportation, and medical allowances, which are tax-deductible if they’re classified as a cost of living allowance.

The following are fringe benefits,​ except?​ ​

• Transportation stipends
• Housing Allowance

• Uniform Allowance

• Allowance for Health Care

• Education Opportunities

Answer explanation

Uniform Allowance is not a Fringe Benefit but will fall on De Minimis Benefits

The following benefits are not taxable, except

• • Fringe benefits required within a trade

• • Allowances for health care

• • Meal subsidies

• • Holiday bonuses