Deck 4: Rewards

Question 1

The Federal Insurance Contributions Act requires employers to do which of the following?

A)Contribute to a defined benefit plan
B)Contribute to a deferred compensation plan
C)Withhold Social Security tax from pay
D)Provide health insurance for all employees

Answer 1

Withhold Social Security tax from pay

Question 2

A total rewards philosophy can help achieve an organization's strategic goals by doing which of the following?

A)Attracting and retaining employees with the necessary KSAs
B)Establishing a pecking order for jobs within the organization
C)Positioning the company to lead the competition for employees
D)Maintaining an entitlement culture

Answer 2

Attracting and retaining employees with the necessary KSAs

Question 3

An entitlement culture is appropriate for a business that needs what type of workforce?

A)One that continues to show productivity increases over time
B)One that has a line of sight to retirement
C)One that is highly competitive in completing daily assignments
D)One that has a skill set in high demand

Answer 3

One that continues to show productivity increases over time

Question 4

A company that wants to reduce the cost of its unemployment insurance should do which of the following?

A)Aggressively fight unjustified claims for unemployment
B)Establish an effective performance management program
C)Terminate employees who violate company policy
D)All of the above

Question 5

A reduced FMLA leave schedule is which of the following?

A)The employee is absent from work multiple times for the same illness or injury.
B)The employee works fewer hours each day or week.
C)The employee's leave schedule is disruptive to the work schedule.
D)Accurate records of time off are maintained.

Question 6

The Older Worker Benefit Protection Act requires that an employee age 40 or older who is asked to waive their rights under the act must be given what?

A)7 days to consider the agreement before signing it
B)21 days to consider the agreement before signing it
C)45 days to consider the agreement before signing it
D)60 days to consider the agreement before signing it

Question 7

The Omnibus Budget Reconciliation Act of 1993 does not require which of the following?

A)Group health coverage be offered for children placed for adoption before the adoption is final
B)Group health plans honor qualified medical child support orders
C)Tax deductions for executive pay be capped at $1,000,000 per year
D)Income tax be withheld from some distributions to rollover accounts

Question 8

A summary plan description is required for all of the following except

A)Defined contribution plans
B)Defined benefits plans
C)Flexible spending accounts
D)AD&D insurance

Question 9

Which of the following statements about workweeks is not true?

A)A workweek is any fixed and regular recurring period of 168 hours.
B)The employer can select any day (and any hour) of the calendar week on which to begin the workweek.
C)The employer can establish different workweeks for different employees or groups of employees.
D)The hours than an employee works during different workweeks within the same pay period can be "averaged."

Question 10

Which of the following would not be considered an affirmative defense under the Equal Pay Act?

A)Seniority
B)Diversity
C)Quality of production
D)Merit

Question 11

Which of the following statements about the point factor method of job evaluation is true?

A)Point factor systems do not establish levels of performance within each compensable factor, since that would constitute making the error of evaluating the person instead of the position.
B)There is a greater likelihood of rater subjectivity with point factor methods of job evaluation than with whole job methods, since point factor systems require the evaluator to make more judgments.
C)The product of a completed job evaluation will generate information that will be helpful to establishing a job worth hierarchy.
D)While point factor systems address evaluative information about different compensable factors, they do not address the relative importance of each compensable factor.

Question 12

Which of the following was established by ERISA?

A)Enhanced protection for plan members with preexisting medical conditions.
B)A clearer definitions of "hours worked" for purposed of minimum wage and overtime payments.
C)Whistleblower protection for employees who report fraud against shareholders.
D)Minimum participation and vesting standards for retirement programs.

Question 13

Fiduciaries must do all of the follow except

A)Protect plan participants by diversifying plan investments
B)Act with skill, care, prudence, and diligence
C)Avoid conflicts of interest
D)Follow the terms of plan documents without deviation

Question 14

Which of the following did the REA not accomplish?

A)Lowered the minimum age requirements for pension plan participation, and increased the years of service that count for vesting purposes
B)Prohibited plans from counting maternity and paternity leaves as breaks in service for participation and vesting purposes
C)Required qualified pension plans to provide automatic survivor benefits that could be waived only with the written consent of the plan participant
D)Clarified that pension plans may obey certain qualified domestic relations orders without violating ERISA

Question 15

"PHI" refers to

A)Health information that relates to a specific individual
B)A managed care health option offered to federal and state government employees
C)Information that was used as part of the "long form" test under the old provision of the FLSA
D)Information that must be maintained in accordance with the record-keeping requirements of the FLSA

Question 16

Which of the following is not one of the three main provisions of the Social Security Act?

A)Retirement benefits
B)Pension protection
C)Survivor's benefits
D)Disability benefits

Question 17

Which of the following is not required of covered entities by the HIPAA privacy rule?

A)Designation of a privacy officer
B)Creation of a code of ethics that applies to all employees who have access to health-related information
C)Establishment of a complaint handling and resolution process for issues related to the HIPAA privacy rule
D)Agreements signed by business associates stating that they will respect the confidentiality of patient information

Question 18

As the HR manager, you've been looking for creative ways to provide employees with greater benefits without incurring significant additional costs. Your company already has a POP in place. Which of the following would you be most likely to recommend?

A)FSAs
B)PCAs
C)ESOPs
D)PNGs

Question 19

You're the HR manager at your organization and report directly to the president (whose sister died of cancer about six months ago). One afternoon, an employee comes to you with a problem. Her sister (who lives out of state) has been diagnosed with a very aggressive form of cancer and has less than 6 months to live. The employee wants to spend the last few months of her sister's life with her, to share time and care for her in her final days. The employee has already requested a leave of absence but was advised by an HR representative and her manager that this sort of leave isn't covered under FMLA. Your department is going into its "busy season," so her manager in unwilling to grant any other type of leave. She is concerned about how she will support herself while she is staying with her sister. She asks you whether it is possible for the company to call this a layoff and approve of her getting unemployment insurance. Sadly, she knows that her sister won't live longer than six months, so unemployment insurance benefits would carry her through. After you express your concern and sympathy, which of the following responses would be the best?

A)Tell the employee that it is up to the state, not the company, whether or not unemployment insurance will be granted and that, while you do sympathize with her situation on a personal level, it's not possible for you to code the termination as a layoff.
B)Tell the employee that it's up to the state, not the company, whether or not unemployment insurance will be granted. However, as long as the president approves (and you're pretty sure he will), you're willing to code the termination as a layoff.
C)As HR, your role is that of employee advocate, and you are willing to advocate on her behalf to the president. You are fairly confident that he will approve this request and will get back to the employee either way as soon as possible.
D)You remind the employee, as gently as possible, that, as HR, your role is to ensure that all of the company's policies and procedures are followed, and falsifying the termination code would be a violation of policy. As such, you just can't code the termination as a layoff.

Question 20

A manager who you know fairly well, and with whom you have a good working relationship, leaves a voice mail message for you asking you to please call her back about a benefits question. You return her call, and she comes down to your office to speak with you in person. She explains that her former assistant, who left nearly a year and a half ago to go back to college, is about to run out of COBRA. She explains to you that he still is one semester away from earning his degree and can't get decent health insurance through the college plan. She asks if you wouldn't mind leaving him on COBRA, just for a few more months. You know that you've got to formulate a response that accomplishes a number of things, including providing accurate facts. Which of the following facts would be the most appropriate to share?

A)You inform the manager that, under COBRA, former employees who are full-time students at the time that COBRA runs out are entitled to an extension for as long as the former employee remains a full-time student (up to 18 months).
B)You inform the manager that although COBRA only requires an employer to continue benefits coverage for 18 months, the employer has the option to extend COBRA benefits for an additional 18 months.
C)You inform the manager that COBRA can be continued for another 18 months, as long as the employee pays the company 110% of the monthly premium costs.
D)You inform the employee that COBRA cannot be continued beyond 18 months in this particular situation, but there are other situation that would warrant an extension and that you would be happy to share that information with her.

Question 21

You've recently been promoted to a position as an HR generalist, and you're anxious to get down to work. One day, a manger that you haven't worked with before comes to you to talk about a problem he's having with one of his direct reports. This employee happens to be an executive assistant, and he is a highly trusted and valued member of the department. He handles confidential information and is always looking to grow and learn. The employee feels, however, that he has been "held back" because he's classified as non-exempt and therefore can't join in with the team on special projects that require overtime or weekend work (there is no money in the budget for overtime hours). This employee ends up feeling excluded and less important. The manager wants you to help him find a way to reclassify the position as exempt. Which of the following responses would be the least appropriate?

A)The manager should help the employee understand that he is truly a valued manager of the team.
B)Based on the information the manager has given you, the position should be upgraded, but the title would have to be changed.
C)The position should be evaluated to see how it changed since the last review and whether it should be upgraded.
D)The manager should have a conversation with the employee about his career objectives.

Question 22

The Retirement Equity Act enacted a number of important provisions, including

A)Increasing the minimum age requirement for pension plan participants
B)Requiring qualified pension plans to provide automatic survivor benefits and allow for waiver of survivor benefits without the consent of the participant or the spouse
C)Clarifying that pension plans are prohibited from obeying qualified domestic relations orders requiring them to make benefit payments to a participant's former spouse if that order violates ERISA's prohibitions against assignments or alienation of benefits
D)Prohibiting plans from counting maternity and paternity leaves as breaks in service for participation and vesting purposes

Question 23

Of the following four types of pay that an employee could earn, which one needs to be included in an employee's regular rate of pay?

A)Jury duty pay
B)Premium pay (for weekend work)
C)Bonus pay
D)Incentive pay

Question 24

An organization's total compensation program should do all of the following except

A)Support and reinforce the mission, vision, and values of the organization
B)Be consistent with the culture of the organization
C)Be competitive with the total compensation programs offered by labor market competitors
D)Attract, motivate, and retain targeted/appropriate employees

Question 25

Which of the following statements about defined contribution plans is untrue?

A)Unlike defined benefits plans, defined contribution plans do not promise a specific monthly benefit (or total benefit) at retirement.
B)Defined contribution plans shift the risk away from the employer (which is where it rests for defined benefit plans) and back onto the employee.
C)Defined contribution plans are decreasing in popularity, while defined benefit plans are increasing in popularity.
D)Examples of defined contribution plans include 401(k) plans, employee stock ownership plans, and profit-sharing plans.

Question 26

Which law implemented changes in two sections of the United States tax code that resulted in the creation of two new - and ultimately very important - employee benefits?

A)Consolidated Omnibus Budget Reconciliation Act (COBRA), 1985
B)The Revenue Act
C)Health Insurance Portability and Accountability Act (HIPAA)
D)Retirement Equity Act

Question 27

A cash balance plan is

A)A defined benefit plan that expresses the promised benefit in terms of a stated account balance
B)A defined benefit plan that expresses the promised benefit in terms of a specific monthly benefit
C)A defined contribution plan that expresses the promised benefit in terms of a stated account balance
D)A defined contribution plan that expresses the promised benefit in terms of a specific monthly benefit

Question 28

According to the Older Worker's Benefit Protection Act (OWBPA), individuals are prohibited from waiving their rights or claims under ADEA unless such a waiver is "knowing and voluntary." OWBPA established nine specific criteria for ensuring that such waivers are "knowing and voluntary," one of which requires that employers must allow employees time to consider any right-to-sue waivers that the employer offers in exchange for early retirement benefits. How many days must an employer allow?

A)At least one week
B)At least two weeks
C)At least three weeks
D)At least one week for each year of service

Question 29

True or False:
Restricted stock is subject to special SEC regulations before it can ever be sold on the market.

A)True
B)False

Question 30

During what kind of economic conditions are cost of living adjustments generally used?

A)Periods of high inflation
B)Periods of low inflation
C)Periods of depression
D)Periods of stagnation

Question 31

If an employee is entitled to minimum wage, protections under child labor and equal pay, and overtime if he or she works in excess of 40 hours per week, is the employee exempt or non-exempt?

A)Exempt
B)Non-exempt

Question 32

Sione earns roughly $22,000 per year, manages and supervises three other employees, and spends about 35 hours per week on job duties that require a fair amount of discretion and independence. Which of the following is true about Sione?

A)Sione is nonexempt, based upon the salary requirements.
B)Sione is exempt because he manages and supervises other employees.
C)Sione is exempt, due to his salary.
D)Sione is nonexempt, due to a lack of hours.

Question 33

What act requires all government contractors with contracts exceeding $10,000 (for everything that is not construction work) to pay their employees the real, prevailing wage for their locality, as established by the Secretary of Labor?

A)Service Contract Act
B)Walsh Healey Public Contracts Act
C)Fair Labor Standards Act
D)Davis Bacon Act

Question 34

Of the following acts, which one requires that companies with federal construction contracts must pay their laborers and mechanics the standard wage of employees in the geographic area in which the work is being performed?

A)The Fair Labor Standards Act
B)McNamara-O'Hara Service Act
C)Federal Labor Relations Act
D)The Davis-Bacon Act

Question 35

As of 2007, what is the federal minimum wage set at?

A)$5.15/hour
B)$5.75/hour
C)$7.25/hour
D)$6.15/hour

Question 36

Which of the following is the correct term for an arrangement in which an employee is paid a portion of their income at a later stage in life?

A)Late pay
B)Deferred pay
C)Incentives
D)Stock options

Question 37

If a company employee is earning a salary that is deemed to be excessive when compared to their counterparts of equal ability, their pay rate may be identified as what type of rate?

A)Red circle
B)Lump-sum pay
C)Revenue production
D)Compensation market pricing

Question 38

What type of compensation system is directly related to the employee's individual performance?

A)An incentive pay plan
B)A merit pay plan
C)A pension plan
D)All of the above

Question 39

What is required annually by the Employee Retirement Income Security Act to ensure that highly compensated employees do not receive greater benefits from a company's 401k plan than the benefits received by other employees?

A)Actual deferral percentage test
B)Administrative services only plan
C)Headquarters report
D)Salary surveys

Question 40

In which managed care plan is the care provider formed by an insurance company, an employer, or a group of employers who negotiate discounted fees with networks of health care providers?

A)POS
B)PPOs
C)POPs
D)Staff model HMO