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?

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