Compensation & Benefits Administration Flashcards
7 cards from real CPC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Compensation & Benefits Administration flashcards as text
A company wants to ensure its base salaries remain competitive in the market. Which survey methodology provides the most reliable external benchmark data?
Answer: Structured third-party compensation surveys with matched job content
Third-party compensation surveys using matched job content provide statistically reliable market data because they standardize job comparisons across organizations.
Under the Fair Labor Standards Act (FLSA), which worker classification determines eligibility for overtime pay?
Answer: Exempt vs. non-exempt
The FLSA classifies workers as exempt or non-exempt based on salary level, salary basis, and job duties tests; non-exempt employees must receive overtime pay.
A recruiter places a candidate who accepts a role with a $90,000 base salary. The staffing firm's fee is 20% of first-year compensation. What is the placement fee?
Answer: $18,000
$90,000 × 0.20 = $18,000 is the placement fee based on first-year base salary.
Which type of health insurance plan typically offers the lowest out-of-pocket costs when employees use network providers but requires primary care physician referrals?
Answer: Health Maintenance Organization (HMO)
HMOs generally have lower premiums and out-of-pocket costs but require members to select a primary care physician and get referrals for specialists.
What is the primary purpose of a salary range midpoint in a compensation structure?
Answer: To represent the market rate for a fully competent performer in the role
The midpoint of a salary range is designed to reflect the competitive market rate for a fully proficient employee in that position.
An employer contributes 3% of each employee's salary to a 401(k) plan regardless of whether the employee contributes. This is best described as a:
Answer: Non-elective contribution
A non-elective contribution is made by the employer for all eligible employees without requiring any employee contribution.
Which pay equity concept focuses on ensuring that jobs of comparable worth to the organization receive comparable pay, even across different job families?
Answer: Comparable worth / pay equity
Comparable worth (pay equity) holds that jobs of similar value to the employer — even in different job families — should receive similar compensation to eliminate gender-based wage gaps.