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Total questions: 126
Worksheet time: 4hrs 12mins
Name
Class
Date
1.
The Act that prohibits pre-employment offer medical exams is the
a)
Equal Rights Act
b)
Older Workers Benefit Protection Act
c)
Americans With Disabilities Act
d)
Equal Employment Opportunity Act
2.
According to the Uniform Guidelines on Employee Selection, there are three types of job-related validity. They are (3 answers)
a)
Content validity
b)
Construct validity
c)
Test validity
d)
Criterion-related vailidity
3.
The FLSA, enforces by the DOL regulates:
a)
Employee leaves of absence due to illness
b)
Minimum wage and overtime
c)
Independent contractors, minimum wage, and overtime
d)
Minimum wage, overtime, and child labor
4.
What is the minimum wage for workers who receive tips?
a)
$7.25 per hour regardless of the amount of tips received
b)
$2.13 per hour if that amount plus the tips received equals at least the minimum wage
c)
$5.15 per hour if the tips are put into a pot to be shared by all employees
d)
Minimum wage laws do not apply to workers who receive tips
5.
Time off in lieu of overtime pay is called
a)
Variable time
b)
Compensatory time
c)
Comparable time
d)
Punitive time
6.
An independent contractor is someone who
a)
Is hired for a temporary assiginment
b)
Is covered by the FLSA in a special category
c)
Makes services available to many employers
d)
Performs services personally for the employer
7.
According to the FLSA, workers under what age may not be assigned to jobs considered hazardous?
a)
25
b)
21
c)
18
d)
16
8.
Under federal law, must a fourteeen or fifteen-year-old have a work permit to work?
a)
Yes, they must apply for the permit from the local Department of Labor office
b)
Yes, they must apply for the permit from their high school
c)
No, but the employer may require permission from the youth's high school guidance office
d)
No, work permits are not required
9.
Employees specifically excluded from FLSA's requirement for overtime pay are:
a)
Exempt employees
b)
Hourly employees
c)
Technical employees
d)
Non-exempt employees
10.
Is the Administrative Assistant to the CEO of our organization considered Exempt from overtime provisions of the FLSA?
a)
No this is a non-exempt position
b)
Yes, if he/she earns over $684 per week
c)
Yes, if he/she exercises discretion and judgement with respect to matters of significance
d)
No, if he/she works a significant number of overtime hours each week
11.
Are outside pharmaceutical sales representatives considered exempt from FLSA?
a)
No, they do not supervise others
b)
No, they don't sell any products
c)
Yes, they work outside of the office
d)
Yes, they act in the capacity of outside sales
12.
Prevailing wage laws must be adhered to by employers
a)
When hiring disadvantaged minorities
b)
To avoid discriminatory hiring practices
c)
Having contracts with the US Government
d)
With multipl locations throughout the US and internationally
13.
The Davis-Bacon Act:
a)
Established the prevailing wage for construction workers on federal projects
b)
Sets overtime provisions for all workers except domestice and government employees
c)
Prohibits minors under the age of 18 from working in hazardous occupations
d)
Sets minimum wages for all workers in the private, non-inion workforce
14.
Non-exempt employees must be paid for the time spent in job skills training if:
a)
The employer requires the training even if it is after work hours
b)
Whether or not the employer requires the training
c)
The training is voluntary but will enhance the employee's job skills
d)
The employer does not require the training
15.
"Total Rewards" refers to:
a)
Direct pay, indirect and direct benefits
b)
Intrinsic and extrinsic benefits
c)
Compensation, benefits, and the work experience
d)
Base pay, incentives, and bonuses
16.
An employer with an entitlement philosophy believes employee's pay schould be based on:
a)
Performance differences
b)
Increased knowledge
c)
Skills mastered
d)
Seniority
e)
17.
An organizational pay policy to set pay structures and pay levels below the market rate for jobs is called a:
a)
Gap polocy
b)
Match policy
c)
Lag policy
d)
Lead policy
18.
An employee paid a weekly salary and time and one-half for each hour worked over 40 is considered:
a)
Salaries exempt
b)
Salaried non-exempt
c)
Hourly non-exempt
d)
An exception to the FLSA
19.
Compensation programs that compensate employees for their knowledge and ability to influence and direct others is called:
a)
Competency-based pay plans
b)
Performance-based pay plans
c)
Merit-based pay plans
d)
Seniority-based pay plans
20.
Exampled of differential pay include (2 answers)
a)
Paid sick leave
b)
Shift pay
c)
Hazard pay
d)
Overtime pay
21.
Incentive pay based on individual, group, or organizational performance is:
a)
Motivational pay
b)
Indirect pay
c)
Variable pay
d)
Deferred pay
22.
How does incentive pay differ from merit pay?
a)
Merit pay is given to exempt level employees; incentive pay is for non-exempt employees
b)
Incentive pay is a permanent increase; merit pay is a bonus
c)
Merit pay is most often based on subjective performance appraisal ratings; incentive pay is typically based on quantifiable performacne standards
d)
Merit pay is more closely tied to the organizational vision and strategy than incentive pay
23.
An oganization wide incentive plan that shares a portion of the organization's earnings with employee is a(n):
a)
ESOP
b)
Profit sharing plan
c)
Gain sharing plan
d)
PERK plan
24.
Executive incentive pay is usually all of the following (3 answers)
a)
Based on the overall success of the organization
b)
A large portion of total compensation
c)
Paid annually to encourage strong sales and immediate profits
d)
At risk, not guaranteed
25.
An executive contract provision promising enhanced severance pay should there be a lerger or acquisition is a:
a)
Silver parachute
b)
Professional Severance Package
c)
Golden parachute
d)
Career severance package
26.
A pay system for professional employees that gives salary increases based on seniority and experience is a(n):
a)
Maturity Curve
b)
Seniority Curve
c)
Professional Curver
d)
Efficiency Curve
27.
When a professional is given the opportunity of advancing in the organization through a technical track or a managerial track and is eligible for the same compensation level, it is called a(n)
a)
Equal career ladder
b)
Comparable career path
c)
Dual career ladder
d)
Fast track plan
28.
Please select the BEST answer. A good compensation plan should:
a)
Support the organization's overall philosophy and culture
b)
Be perceived as fair
c)
Be strategic, equitable, competitive, and effiicent
d)
Be able to recruit and retain employees
e)
29.
The process of determining the skillls and duties required of a job is called:
a)
Job evaluation
b)
Job analysis
c)
Factor comparison
d)
Job classification
30.
The simplest job evaluation method is:
a)
Benchmarking
b)
Factor comparison
c)
Paired comparison
d)
Ranking
31.
The quantitative job evaluation method that assigns numerical degrees to each job to determine its relative worth is:
a)
Point
b)
Ranking
c)
Salary Comparison
d)
Job Classification
32.
Benchmark jobs:
a)
Can be matched to similar jobs in the market
b)
Are specific to your organization
c)
Require a specific set of skills
d)
Can be easily trained
33.
What is used to collect compensation data for workers performing similar jobs in other organizations?
a)
Equity evaluation
b)
Job survey
c)
Salary survey
d)
Salary evaluation
34.
A compensation analyst collected salaray data from several surveys to be used for a compensation plan effective April 1st. One survey's data was from April of the previous year, another was from Octobver of the previous year, and the third was from January of the current year. What should the analyst do with the data before processing?
a)
Level
b)
Age
c)
Compare
d)
Smooth
35.
A key drawback for an organization developing its own salary survey is:
a)
Determining the benchmark jobs to use in the survey
b)
The time involved in preparing the survey
c)
The possible violation of the Sherman Anti-trust Act
d)
The possible violation of the Fair Lavor Standards Act
36.
The number of job grades may be based on all the following (3 answers):
a)
Skills and responsibilities
b)
Management philosophy
c)
Current employee's wage rates
d)
Responsibilties
37.
Broadbanding is being used when:
a)
Salary grades and ranges are combined into a few wide levels
b)
Manay salary surveys are used to determine pay rates for jobs
c)
Whole jobs are compared to other jobs in the organization
d)
The organization wants to create more promotional opportunities
38.
Determining the pay rates for jobs not found in the market is best determined by using a:
a)
Benchmark
b)
Wage curve
c)
Comparable worth analysis
d)
Red circle
39.
Organizations normall adjust their pay structures annually based on:
a)
Wage changes in the external market
b)
Internal equity
c)
Turnover analysis and pay dissatisfaction
d)
Difficulties in attracting employees
40.
Individual pay divided by the midpoint of the salary range is called the
a)
Compa-ratio
b)
Cash balance point
c)
Balance sheet approach
d)
Red circle point
41.
Jane earns $15/hr as an Accounting Assistant. In Jane's organization, an Accounting Assistant job is in Grade 4 with a pay range of $9 - $25. The midpoint of the range is $17. What is Jane's compa-ratio?
a)
0.88
b)
1.67
c)
1.133
d)
0.6
42.
When an individual employee's pay is found to be below the pay range for the job, it is:
a)
Red lines
b)
Black listed
c)
Red circled
d)
Green circled
43.
Pay compression occurs when
a)
The same duties are listed on more than one job description
b)
Men and women are paid the same pay for equal work
c)
Starting salaries are the same or more than long-term employees are earning
d)
Pay ranges are smaller for lower level jobs
44.
All of the following increase base pay EXCEPT
a)
Automatic step-rate
b)
Merit
c)
Lump sum
d)
Cost of Living Allowance
45.
What is a salary increase, not based on performance or seniority, intended to keep all employees at their same standard of living?
a)
CPI
b)
COLA
c)
HAS
d)
SODA
46.
The amount and timing of salary increases are set by a pre-determined timetable in this type of pay system.
a)
Automatic step-rate
b)
Seniority based
c)
Entitlement
d)
Productivity based
47.
What is a sales draw?
a)
A commission payment
b)
A loan to be paid from the future commissions
c)
Travel expense reimbursements
d)
Training wage for sales employees
48.
The employer does not have a new employee's completed W-4 form before the first pay period. The employer should:
a)
Inform the employee that a paycheck will not be issues until the form is complete
b)
Issue the paycheck without withholding taxes on the first payroilll. Take the additional taxes out of the subsequent payrol after the form is completed
c)
Withhold taxes as if the employee is a single with no dependents
d)
Withhold taxes as if the employee was single with one dependent
49.
Employees, classified as exempt under the FLSA, work for five hours on Monday before a small fire in the office results ina substantial amount of damage. The entire office is shut down for the rest of the week. That week, the exempt level employees receive:
a)
Full paychecks
b)
Five hours of pay
c)
Eight hours of pay for Monday only
d)
Full pay for Monday and an additional four days' pay only if they have accrued vacation or personal time to draw from
50.
The Balance Sheet approach to international compensation:
a)
Pays expatriates on the same pay scale as the employees in the host country
b)
Adjusts expatriate compensation, but allows for home country visits
c)
Does not adjust compensation, but allows for home country visits
d)
Assumes the expatriate will remain outside of the US for the duration of his/her career
51.
Your company is closing for the afternoon before a holiday. There is no company policy regarding holiday pay. The following statement is correct.
a)
Employees classified by the FLSA as non-exempt must be paid for the day
b)
All employees must be paid for the day
c)
No employees need to be paid for the afternoon
d)
Employees classified by the FLSA as exempt must be paid for the day
52.
Under federal law, when must breaks and meal periods be given?
a)
Employees working at least eight hours must be given two 15-minute breaks and a twenty minute meal period
b)
Employees must be given a break or meal period after evcery four hours of working
c)
Employees are not entitles to breaks or meal periods by law
d)
Employers may set the number and length of breaks and meal periods, however, breaks may be unpaid time, but meal periods must be paid.
53.
A non-exempt employee would not be entitles to overtime pay in a week in which he was on jury duty unless:
a)
The employee actually works more than 40 hours in the work week
b)
The jury duty was a mandated obligation
c)
The employer paid for the day
d)
The employee made up the time
54.
Under the FLSA, employees may
a)
Be required to work employer scheduled overtime
b)
Not work more than sixteen hours of overtime in one week
c)
Reject working over 40 hours each week
d)
Not work more than one day (8 hours) of overtime in any week
55.
All of the following may be excluded when computeing the "regular rate of pay" for overtime purposes (3 answer)
a)
An attendance bonus given to every employee with perfect attendance each quarter
b)
A surprise gift of $25 given to every employee on the Company's 10th anniversary
c)
A company-wide bonus for each amployee to be added to their Profit Sharing plan
d)
The value of a company provided Blackberry to be used for company business
56.
Jerry earns $15/hr as a cashier in the restaurant of the art musuem. He earns $10/hr as a waiter. This week Jerry worked 40 hours at his regular job, and an additional 10 hours as a waiter. What will Jerry be paid for the week?
a)
700
b)
770
c)
840
d)
750
57.
Steady overtime often results in
a)
Lower labor costs and higher productivity
b)
lower labor costs and lower productivity
c)
higher labor costs and lower productivity
d)
higher labor costs and higher productivity
58.
Althought it is generally a violation of the FLSA for employers to offer non-exempt employees compensatory time instead of pay for over-time work, it may be allowed when:
a)
The employee asks for it
b)
The employer has a specific policy
c)
It is an industry standard
d)
The employer is the government
59.
A non-exempt employee works from 8am to 5pm Monday, she took three 15 minute breaks and helped out in the Mail Room during her one-hour lunch break. How many hours will she be paid for that day?
a)
9 hours
b)
7.5 hours
c)
7.75 hours
d)
8 hours
60.
A full-time exempt employee (as defined by the FLSA) wants to adjust his hours to work part-time. His duties and responsibilities will not change; however, his pay will be reduced.
a)
He will be re-classified as non-exempt.
b)
He will remain exempt as long as he earns at least $35,568/year
c)
He will still be classified as exempt
d)
He will remain exempt if he earns over $75,000/year
61.
A snow storm is approaching and the decision is made to close the facility early, send everyone home, and not oen tomorrow. Under the FLSA, how are we required to pay employeed for this lost time?
a)
Exempt employees are paid for both days; non-exempt employee are only paid for the time worked.
b)
All employeesare paid for time worked the first day, but no paid for the second day.
c)
All employees are paid for the first day since they were schedule to work a full day
d)
Non-exempe employees are paid for the time worked the first day, exempt employees are paid for the full first day; none of the employees are paid for the second day.
62.
According to the FLSA, how many hours per day or week can an employee over sixteen years of age work?
a)
12-hour days, and no more than 50 hours per week
b)
No limit on the number of hours per day or week
c)
no limit on the number of hours per week, but no more than 10-hour days
d)
The number of hours per day and week vary by industry
63.
Which of the following driving situations may a 17-year-old employee be allowed to do?
a)
Short distance deliveries any time of the day
b)
In vehicles up to 8000 pounds
c)
Route deliveries within a 50 miles radius
d)
Delievreis within daylight hours
64.
When does the FLSA consider an intern an "employee" subject to the terms of the Act?
a)
The work done by the intern "benefits" the employer
b)
The intern receives college credit for the work
c)
The work done by the intern "benefits" the intern
d)
The intern does not displace another employee
65.
Living wage laws are believed to provide all of the following benefits EXCEPT
a)
Reduce the comparable worth concerns between jobs
b)
Reduce employee turnover
c)
Increase employee job performance
d)
Increase employee productivity and quality
66.
Organizations that are unionized are more likely to pay union members in the same job:
a)
A single wage rate
b)
A rate within the union wage range
c)
Cost of living and merit increases
d)
Cost of living increases
67.
The Act that details how someone training employees for the Federal Government must be paid is the
a)
Walsh-Healy Act
b)
The Independent Contractor Act
c)
The McNamara Service Contract Act
d)
The Federal Contractor Act
68.
To establish a prima facie case of wage discrimination under the Equal Pay Act, a plaintiff would have to show that
a)
Minority employees were paid less than other employees in the same job
b)
Female employees were paid substantially less than males doing the same job
c)
There were few women employed in traditionally male dominated jobs
d)
As a whole, female-dominated jobs in the organization were in lower pay grades than most male-dominated jobs
69.
Under which of the following conditions could an employer be exempt from paying equal pay?
a)
Equal effort
b)
Equal education
c)
Equal role
d)
Employement tenure
70.
An applicant was offered a position with a federal contractor. Before accepting the offer, she asked current employees to disclose their salaries so she could compare her starting salary. What should the employer do?
a)
Rescind the offer
b)
Discharge the employees who shared confidential salary information
c)
Increase the offer
d)
Do nothing
71.
The value of employee imputed taxable income includes
a)
employer paid medical insurance premiums
b)
company match to each employee's 401(k) account
c)
employer provided life insurance premiums
d)
company cars used for personal use
72.
The most common approach to managing labor costs in the US is to
a)
control the number of exempt employees
b)
use overtime when necessary
c)
manage the number of employees and/or the hours worked
d)
promote from within
73.
Under an entitlement philosophy, which compensation practice is most likely to occur?
a)
Step increases
b)
Pay for Performance
c)
Cost of living increases
d)
Increase in benefits packages
74.
A sales person is given a draw of $500 per month. His sales during the next 12 months are worth $25,500 in commission. What are the employee's gross earnings for the year?
a)
25500
b)
25000
c)
19500
d)
31500
75.
All the following are strategic reasons for implementing incentive plans EXCEPT
a)
The create an environment of "shared commitment"
b)
Incentive plans based on productivity can reduce costs
c)
Tying compensation to employee effort will improve performance
d)
Employees view incentive payments are both rewards and entitlements
76.
The bonus given to team members under Improshare differes from that given under the Sanlon or Rucker plans is that:
a)
It includes non-production workers
b)
It is based on individual contributions to the goal
c)
It is based on the number of dollars saved
d)
The group members receive the total amount saved
77.
A secretary earns $10 per hour. The week before he vacation she worked 45 hours. Her employer gave her a $25 bonus to enjoy while she was on vacatio. What should she be paid for the week?
a)
450
b)
475
c)
500
d)
480.75
78.
Where do high-level executives tend to have proportionately more of their total compensation than employees in lower levels in the organization?
a)
incentives
b)
base pay
c)
benefits
d)
non-qualified pensions
79.
Country club membership, luxury company cars, private jets, and special vacation policies are all examples of executive:
a)
reward
b)
golden parachutes
c)
perquisites
d)
enhanced benefits
80.
When an executive loses his/her job due to an acquisition, and received a large binus package, this is typically described as:
a)
severence pay
b)
golden parachutes
c)
silver parachute
d)
lump sum bonus
81.
An engineer has been with the firm for 13 years. She has the opportunity to become the Director of Engineering or be promoted to a senior engineering position. This choice represents the option of:
a)
Career crossroads
b)
Dual career paths
c)
Development opportunities
d)
Technical career growth
82.
The major problem in compensating expatriates arises
a)
When employees are first sent to foreign countries and they are still aware of market rates
b)
from the need to preserve equity
c)
when the percentage of expatriates begins to pass 33%
d)
because foreign rules governing compensation are so complex
83.
When job analysis is done for compensation purposes, the data collected should focus on
a)
the training needed to effectively perform the job
b)
the career path for each job
c)
task inventories
d)
the similarities and differences between jobs
84.
When using the point method, the total points allocated to each job indicate
a)
the worth of this job related to all other rated jobs in the organization
b)
the worth of this job related to the same job in other organizations
c)
the worth of this job related to the same jobs in the same salary
d)
the worth of this job related to other jobs in the organization with similar seniority
85.
The owner of a small dairy pays each of its ten employees based on the importance of their job duties to the bottom line. This is an example of the
a)
Point method
b)
Ranking method
c)
Benchmarking
d)
Factor analsis
86.
Benchmark jobs are all of the following EXCEPT
a)
They are used to establish market pay policy
b)
They are used to determine the annual percentage of merit increases
c)
They have relatively similar job descriptions across employees
d)
They are necessary for interpreting pay survey data
87.
The first step in interpreting the results of a pay survey is to
a)
verify the accuracy of the data
b)
update the salary data
c)
perform a regression analysis
d)
review the findings with top management
88.
A market line is a linear trend developed by using the statistical "least square regression" method to show the relationship between:
a)
merti productivity
b)
salary survey data and job evaluation points
c)
turnover and productivity
d)
salary survey data and current pay rates
89.
Grouping jobs in wider than traditional pay grades is called
a)
Batching
b)
Clustering
c)
Organizational flattening
d)
Broadbanding
90.
After implementing a new salary system, it is BEST to deal with red circled employees by:
a)
Leaving their salary alone
b)
Cutting the salary to the new maximum pay for the grade
c)
Freezing the salary until the job grade macimum increases to the red circle rate
d)
Provide a bonus and cut the employee's pay to the midpoint
91.
What is the major cause of green circle rates?
a)
Employers who want to pay below market rate
b)
Pay practices which are not market competitive
c)
Promotional practices
d)
People being paid too much to begin with
92.
An employer has three Customer Service Representatives who were all hired in the previous year. Eash CSR currently earns $10, $12, and $11 per hour respectively. This year, the employer needs to hire two more CSR's and plans to pay $14 per hous. This is an example of:
a)
Unfair labor practices
b)
Excessive pay
c)
Pay compression
d)
Improper pay practices
93.
A manager performs performance evaluation on all employees in her respective department. Instead of evaluating the employees for the entire period, she evaluates the employee based on a recent project performed. This is an example of:
a)
Halo error
b)
Recency effect
c)
Contrast error
d)
Drummond's error
94.
What bases merit pay adjustments in part on an individual's current pay compared to the salary range for their job?
a)
Wage chart
b)
Salary Guide Chart
c)
Compa-Ratio Chart
d)
Pay Scattergram
95.
Two organizations are about the merge. One values inovation and reqards its' top creators with individual recognitiono. The other encourages team involvement. Which of the following systems is most likely to be changed?
a)
Sales and marketing strategy
b)
Product research and development
c)
Compensation and benefit plans
d)
Finance and accounting procedures
96.
Under a tax equalization plan:
a)
The IRS gives a tax break to US employees working in other countries
b)
the IRS reimburses US employees for income taxes paid to foreign governments
c)
the employer makes up the difference between US income tax and the foreign taxes
d)
The expatriate is expected to pay the foreign income tax and a portion of US taxes
97.
The approach linking the expatriate compensation package to the local market salary structure is the
a)
Going rate
b)
Fixed term
c)
Short term
d)
Home country
98.
Employers with ________ must comply with the requirements of the Family and Medical Leave Act
a)
100 employees
b)
50 employees
c)
25 employees within a 50 mile radius
d)
50 employees within a 75 mile radius
99.
To qualify for a MFLA leave, an employee must work for an organization a minimum of
a)
Six months as a full time employee
b)
Twelve months as a full or part time employee
c)
Eighteen months, with 1,250 hours worked in the previous twelve months
d)
Twelve months, with 1,250 hours worked in the previous twelve months
100.
According to th Family and Medical Leave Act, who is a "key employee"?
a)
Anyone with a title of Director or above
b)
Anyone making over $100,000 per year
c)
Managers working within 75 miles of the employers headquarters
d)
Salaried employees earning in the top 10% of your workforce
101.
The Family and Medical Leave Act
a)
Applies to employers with 25 employees within a 75-mile radius during 20 or more calendar weeks in the current or preceeding year
b)
Requires employers to provide up to 12 weeks of paid leave for all family and medical reasons
c)
Provides for continuation of medical coverage
d)
Requires placing the returning employee in the position they would have been promoted to during the period of the leave
102.
An employee returns from military service and requests a Family and Medical Leave. She is eligible for the leave if:
a)
She completed 12 months of employment before beginning military service
b)
She would have met the FMLA requirements had she not left for military service
c)
She would be eligible 12 months after returning
d)
She receives one-half credit for the time away
103.
Which of the following statements is true?
a)
In the US, employees must take whatever vacation days they have earned
b)
Vacation days are usually tied to job performance
c)
Vacation days do not vary by rank in the organization hierarchy
d)
In the US, employers are not required to offer any vacation days
104.
Which US Act regulates private employer pension and health plans?
a)
OWBPA
b)
ERISA
c)
Section 127 of the IRS code
d)
ADEA
105.
Employers have a duty to handle and invest retirement funds prudently for the benefit of plan members. The term used for the person designated with this responsibility is a
a)
CFO
b)
Financial Manager
c)
Equity Manager
d)
Fiduciary
106.
If employment is terminates, how many months are former employee usually entitled to continue group health coverage?
a)
12
b)
36
c)
18
d)
6
107.
What Act limits employers or insureres from denying or limiting coverages for pre-existing health conditions?
a)
Health Insurance portability and accountability (HIPAA)
b)
Health Maintenance Act (HMA)
c)
Consolidated Omnibus Budget Reconciliation Act (COBRA)
d)
Equal Pay Act (EPA)
108.
Government mandates benefits include
a)
LTD, Workers Compensation, Unemployed Insurance
b)
National Holidays, Social Security, and Workers Compensation
c)
Unemployment Insurance, LTD, and Social Security
d)
Workers Compensation, Social Security, and Unemployment Insurance
109.
Which of the following terminated employees are eligible for unemployment compensation?
a)
Persons who are involuntarily terminated
b)
Persons who are employed by an immediate family member
c)
Persons who are currently receiving a pension
d)
Persons who return to school full time
110.
Under FLSA regulations, how are vacation pay, sick pay, and holiday pay computere and when are they due?
a)
Paid at base rate and due on next regular payroll
b)
Paid at time and one/half if hours for the week, including the vacation, sick, or holiday, exceed forty hours.
c)
Holidays must be paid in the week they occur, but vacation and sick pay is discretionary for each employer
d)
The FLSA does not require payment for vacation, sickness, or holidays
111.
Employee health insurance is an employer provided:
a)
Benefit, required by the federal government
b)
Voluntary benefit
c)
State mandated benefit
d)
Benefit, required if the organization has 50 or more full time employees
112.
Groups of health care providers who contract with cmployers, or insurance providers, to provide medical service at a reduced fee, and are paid per member each month are:
a)
Preferred Provider Organization plans
b)
Health Maintenance Organization Plans
c)
Fee-for-service plans
d)
Point-of-Service plans
113.
Members may go inside the healthcare network of providers for reduced fees, or pay more to go outside the network in a(n):
a)
Indemnity plan
b)
Managed care plan
c)
Health Maintenance Organization
d)
Preferred Provider Organization
114.
A situation in which only higher-rish employees select and use certain benefits is called
a)
Individual choice
b)
Adverse selection
c)
Adverse risk
d)
Self-choice
115.
In an "Experience-rated" health insurance plan
a)
Health insurance rates are based on the age of each member
b)
The anticipated future expenses are the basis for rate adjustments
c)
The surplus premium not paid out in claims from the last year is deducted from the next year's premium
d)
The actual previous claims experience is the basis for determining the next year's premium rates
116.
If Tom's dentist charges an amount far exceeding what other dentists in the area charge for the same procedure, and the insurance provider only paid what was the typical fee for the procedure in the local geographic area, it would be paying what was:
a)
Reasonable and customary
b)
Logical and routine
c)
Realistic and unusual
d)
Equitable and normal
117.
Once a worker is eligible for Social Security benefits and Medicare, the employer may:
a)
Take the employee off the company provided health insurance because the employee now had Medicare coverage
b)
Reduce the employer contributioon to the employee's profit-sharing plan.
c)
Insist that the employee make the Medicare health benefit secondary to the employer plan.
d)
Not allow any more employee pre-tax contributions to the 401(k) plan.
118.
Employees with over $50,000 in employer provided life insurance, must
a)
List secondary beneficiaries
b)
Payy taxes on the premium over $50,000
c)
Pay taxes on the total premium paid each year
d)
Provide an authorization statement from the employee's spouse if not designates as the primary beneficiary
119.
A defined-benefit retirement plan:
a)
Requires that each participant choose the investment options for their account
b)
Is funded by the employer based on annual profits
c)
Is an employer promise of retirement income
d)
Allows participants to contrinbute a pre-tax percentage of income to the plan
120.
The employee retirement account in the participant's name and the account balance determined by fund performance is a:
a)
Defined-contribution plan
b)
Defined-benefit plan
c)
Discretionary plan
d)
Cash balance plan
121.
A Roth 401(k)
a)
contains the same provisions as a 401(k) plan
b)
Contributions are made with taxable money, but investment returns are tax free
c)
Contributions are made with taxable money, and the investment returns (interest earned) are also taxed
d)
Contributions are made with pre-tax money, and investment returns are tax free
122.
Although an employer contributes to each employee's retirement plan, none of the employer contribution belongs to the member until he/she has been in the plan for three years. This is an example of
a)
Gradual rights
b)
Graded vesting
c)
Cliff vesting
d)
Graded title
123.
What is PBGC?
a)
Federal agency that insures and protects employee pension benefits in defined benefit plans
b)
Federal agency that insures and protects employee pension benefits in both defined benefit and defined contributions benefit plans
c)
Private insurance, required by ERISA, to protect employee pension benefits in defined benefit plans.
d)
Private insurance, required by ERISA, to protect employee pension benefits in defined contribution plans.
124.
Non-qualified retirement plans are
a)
Illegal plans, and therefore employers may not offer them
b)
Plans offered to all employees on a tax-deferred basis, so do receive favorable tax treatment
c)
Plans offered to a select group of employees, so don't receive favorable tax treatment
d)
Plans that meet IRS Code for retirement plans
125.
A plan that allows participants to put aside pre-tax dollars for un-reimbursed medical expenses is called a:
a)
Buffet plan
b)
Flexible spending account
c)
Contributory plan
d)
Defined health account
126.
Employees must be coverd under a "high-deductible" health insurance plan with a minimum of $1000 individual deductible in order to be eligble to contribute to a
a)
Flexible spending account
b)
Cafeteria plan
c)
Health savings account
d)
Money purchase plan
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