Assignment

Question 1
Which term is used to describe the situation where the pay spread between newly hired employees and more qualified job incumbents is small?
Pay structures
Red circle pay rates
Pay compression
Green circle pay rates

Question 2
In March 2011, U.S. companies spent approximately how much per employee for discretionary benefits?
$3,050
$15,000
$1,200
$28,995

Question 3
How are compa-ratios calculated?
Dividing the green circle rates mid-point by the normal pay range
Dividing an employee's pay rate by the pay range midpoint
Dividing the employee's pay rate by the market line rate
Dividing the red circle rates by the normal pay range

Question 4
This type of commission draw acts as a salary because employees are not obligated to repay the loans if they do not sell enough to cover the amount.
Graduated draw
Nonrecurring draw
Nonrecoverable draw
Safe draw

Question 5
Which of the following are the three measures of dispersion?
Percentile standard, deviation, arithmetic mean
Arithmetic mean, percentile, quartile
Standard deviation, quartile, percentile
Quartile, arithmetic mean, standard deviation

Question 6
This federal Act requires contractors with federal contracts worth over $2,000 to pay wages at least equal to those prevailing in the area where the work is being done.
Davis-Bacon Act
Fair Labor Standards Act
Civil Rights Act of 1964
Equal Pay Act

Question 7
This term refers to a group of two or more jobs that are based on similar work characteristics, duties, and responsibilities.
Market pay line
Benchmark jobs
Quartiles
Occupational classification

Question 8
Market lag policies are generally set to which quartile in the salary survey?
2nd
4th
1st
3rd

Question 9
This is a loan from the company to the employee that is carried forward indefinitely until the employee sells enough to repay it.
An interest-free loan
A non-recoverable draw
A recoverable draw
Commission-plus-draw plan

Question 10
The Consumer Price Index represents the average price changes for the price of goods and services in how many regions?
8
6
4
2

Question 11
Which BLS survey covers the incidence and detailed provisions of selected benefit plans, with the data being presented as a percentage of employees who have access to the benefit plans?
Employer Costs for Employee Compensation
National Compensation Survey
National Benefit Index
Employment Cost Index

Question 12
If the company adopts a market lag policy, how will that company's pay range midpoint compare to the market average?
The midpoint will be lower than the market average.
There is not enough information to determine the answer.
The midpoint will be the same as the market average.
The midpoint will be higher than the market average.

Question 13
When these are used to develop pay grade widths, the grades are based on a set number of job evaluation points for each grade that increases as an employee moves up the pay structure.
Pay rate spreads
Absolute job evaluation points spreads
Percentage-based job evaluation point spreads
Pay range spreads

Question 14
Market match policies are generally set to which quartile in the salary survey?
1st
3rd
4th
2nd

Question 15
This term refers to the groupings of jobs based on compensable factors, for the purpose of applying pay policies.
Pay grades
Market-competitive pay structures
Pay ranges
Market lines

Question 16
These are tools used by employers to determine the pay levels needed to recruit highly qualified employees.
External market surveys
Compensation surveys
Strategic surveys
Internal market surveys

Question 17
This type of pay rate applies to an employee who is demoted but is paid more than the maximum rate for the pay grade he is now in.
Green circle
Multi-tier pay
Red circle
Graduated pay

Question 18
What does it mean when the distribution of data is skewed to the right?
There is a lower frequency of larger values and the median is greater than the mean.
There is a higher frequency of larger values and the median is greater than the mean.
There is a lower frequency of larger values and the mean is greater than the median.
There is a higher frequency of larger values and the mean is greater than the median

Question 19
This theory suggests that an employee must regard his own ratio of merit increase pay to performance as similar to the ratio for other comparably performing people in the company.
Comparable ratio theory
Equality theory
Comparable pay theory
Equity theory

Question 20
Jose Escobar conducts a survey of salaries at UB2 Enterprises and finds that 50% of the workers fall below the market pay average of $32,000. In which quartile do the workers at ERL Enterprises fall?
Fourth
First
Third
Second

Question 21
Discretionary benefits are generally divided into which three categories?
Intellectual enhancements, health benefits, and services
Health benefits, intellectual enhancements, and paid time-off
Services, paid time-off, and protection programs
Pension benefits, protection programs, and health benefits

Question 22
What specifies the rate at which participants accumulate benefits?
Combination procedures
Sarbanes-Oxley
Build-up rules
Accrual rules

Question 23
Which type of contingent worker tends to have specialized skills that are in relatively limited supply in the labor market?
Temporary employees
Leased employees
Part-time employees
Independent contractors

Question 24
Marty's employer has a prescription drug plan that will only make him pay 20% of cost of his prescription, if he goes only to certain pharmacies. What type of prescription drug plan does he have?
Mail order prescription drug plan
Prescription reimbursement plan
Medical reimbursement plan
Prescription card program

Question 25
Which of the following is associated with 401(k) plans?
Employees cannot deduct their contributions from taxable income.
Employees pay taxes on their contribution.
Investment gains are taxed.
Employees do not pay taxes on their contributions.

Question 26
What is the term used when a company offers stock to its employees?
Stock grant
Stock allocation
Stock disposition
Stock option

Question 27
Who has the authority to define a "year of service" for pension protection purposes?
The U.S. Department of Labor
The union
The human resources department
The chief executive officer

Question 28
How many hours (including all paid time for performing work and paid time off) will Jamal have to work to complete a "year of service"?
100
270
125
185

Question 29
A short-term incentive plan would most likely be used for which company employee?
A new employee in training
The company's CEO
A mid-level manager
A sanitation worker

Question 30
What is the only state that requires employee contributions under the Federal Unemployment Tax Act (FUTA)?
Michigan
Alaska
Florida
California

Question 31
To be fully insured under OASDI, Simone would have to work at least how long?
5 years
10 years
12 months
24 months

Question 32
This type of consumer driven health care program allows employees to carry-over the unused funds still in their account.
Health reimbursement account
Health savings account
Flexible spending account
Flexible savings account

Question 33
The approximate annual cost of employee assistance programs (EAPs) is usually no more than how much?
$60
$10
$200
$100

Question 34
Which type of contingent worker would work for a company on a long-term basis, presumably on an indefinite basis?
Temporary employees
Leased employees
Part-time employees
Independent contractors

Question 35
What is the only state where employers are not required to fund workers' compensation programs?
Texas
New York
Michigan
Oregon

Question 36
When a telecommuting employee works from a remote extension from the employer's office that includes a clerical staff and a full-time manager, that employee is said to be working at what type of office?
Neighborhood work center
Remote work office
Nomadic work center
Satellite work center

Question 37
The safe harbor rule requires that the contingent worker be covered by whose
pension plan?
The leasing company
The client company
The employee is responsible for his or her own pension
Depends on the contractual arrangement between the leasing company and the employer

Question 38
In which state would an employee be eligible for an additional 13 weeks of emergency unemployment insurance (for a total of 33 weeks) under the Unemployment Compensation Act of 2008 due to excessively high state unemployment?
Montana
Alabama
Michigan
North Dakota

Question 39
How many days must temporary and seasonal employees work to meet ERISA requirements to participate in a company's qualified retirement plan?
200
100
125
250

Question 40
Outplacement assistance programs are best suited for which condition?
Workforce increases
Global operations
New plant openings
Mergers and acquisitions

Question 41
To be covered by FLSA overtime and minimum wage provisions, seasonal employees must work for a company that is open how many months in a year?
4
12
11
7

Question 42
Most contingent workers were employed as what, in 2005?
Temporary employees
Independent contractors
On-call employees
Leased employees

Question 43
As of March 2011, discretionary benefits accounted for as much as what percentage of an employer's total payroll costs?
0%
60%
75%
30%

Question 44
A worker considered part-time is working less than how many hours in a week?
25
39
35
30

Question 45
This term refers to the percentage of the health bill the insured employee is required to pay.
Coinsurance
Co-admission
Co-payment
Co-premiums

Question 46
Which of the following would be considered an act as part of a company's wellness program?
Offering anti-smoking courses
Giving out cigars to expecting fathers
Putting a soda machine in the break room
Giving employees free pizza at lunch

Question 47
Julio wants to apply for unemployment benefits, how much will he have to have earned, in the last four quarters, to qualify?
$1,000 total
$10,000 total
$100 total
$5,000 total

Question 48
MomPop's General Store can avoid paying workers' compensation taxes if it keeps its staff to less than how many employees?
25
50
12
100

Question 49
The IRS uses the term "highly compensated employees" for what purpose?
Fo determine the necessity of top-heavy provisions in health insurance plans
For non-discrimination rules in employer-sponsored health insurance benefits
To determine the necessity of top-heavy provisions in qualified retirement plans
For non-discrimination rules in employer-sponsored retirement benefits

Question 50
As of 2011, how much would you have to earn to qualify for one quarter of credit for OASDI coverage?
$920 a month
$1,090 a year
$625 a month
$625 a year

Question 51
According to the safe harbor rules, leased employees can make-up no more than what percentage of your company's total workforce?
20%
10%
25%
33%

Question 52
Which type of contingent worker is most likely to be involved in a job sharing arrangement?
Part-time employees
Temporary employees
Independent contractors
Leased employees

Question 53
This is the difference between the stock price at the time of purchase and the lower stock price at the time an executive receives the stock option.
Fair market value
Capital gains
Discounted value
Disposition value

Question 54
Which executive bonus amount varies with the extent to which a pre-established minimum performance level is met?
Target plan
Discretionary
Performance-contingent
Predetermined allocation

Question 55
In the end, Yolanda beat Tristen and Michel in a series of competitions among top-level managers to become CEO of National LemGlass. Which compensation theory did the company probably use?
Competition
Comparison
Agency
Tournament

Question 56
This type of executive bonus is based on a bonus pool that is determined by a fixed-formula that is not determined by the executive's performance.
Predetermined allocation
Target plan
Performance-contingent
Discretionary

Question 57
A golden parachute clause can be triggered by which of the following?
Retirement
Disability
Corporate takeover
Resignation

Question 58
The SEC requires compensation information on the CEO and how many of the highest paid executives?
2
7
10
4

Question 59
When he became CEO, Duane was given a stock option that does not require him to exercise his options in order to receive income. Which plan is it?
Golden parachute
Stock appreciation rights
Restricted stock
Discount stock

Question 60
The IRS considers Sylvia to be a highly compensated employee for Beautiful Pictures, Inc., which means she has at least one of which of the following qualifications in the preceding year?
1% owner in the top paid employee group
Made over $75,000
Made over $50,000
5% owner in the top paid employee group

Question 61
What are hardship allowances? What are their features? How does the U.S. Department of State determine the value of these allowances? Your response should be 200-250 words in length.

Who are the key players in setting executive compensation? Detail their different roles. Your response should be 200-250 words in length.