Employee Compensation Components Final Assessment

Derek is paid $550 per week but only brings home 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

Which of the following best describes a pension plan?

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

• 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

Katie makes $13 per hour plus overtime. Last week, she worked 47 hours, when she usually only works 40 hours. What is her gross wage?

Evaluate responses using AI:

OFF

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

• Paid leave

• Health insurance

• Flexible spending account

• Incentives

Commission is the sum of money paid to an employee upon the completion of a task, typically selling a certain amount of goods or services.

• True

• False

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

• HSAs belong to the employee while FSAs belong 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 FSAs do

What is the overtime pay rate?

• Time-and-a-half

• Double pay

• Triple pay

• Bonus pay

Select all of the following which are advantages to salaried employees.

• Better access to benefit packages and retirement plan options

• Larger bonuses and more paid vacation

• May be exempt from earning overtime

• Same income even when working less than 40 hours per week

How often are paycheck stubs provided?

• Every pay period

• Every other pay period

• Quarterly

• Once at the end of the year