CSP Compensation & Benefits Administration Flashcards
6 cards from real CSP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CSP Compensation & Benefits Administration flashcards as text
Under the Affordable Care Act (ACA), at how many full-time equivalent employees must a staffing agency offer health coverage to avoid penalties?
Answer: 50 FTEs
The ACA employer mandate applies to Applicable Large Employers (ALEs) with 50 or more full-time equivalent employees, requiring them to offer minimum essential coverage.
Which federal law governs pension and benefit plan requirements for staffing agency employees?
Answer: ERISA
ERISA (Employee Retirement Income Security Act) sets minimum standards for pension and health benefit plans in private industry, including those offered by staffing agencies.
What is a 'pay stub' requirement under most U.S. state wage laws for staffing employees?
Answer: Employees must receive an itemized statement of wages and deductions each pay period
Most states require employers to provide employees with an itemized pay stub each pay period showing gross wages, deductions, and net pay.
What is the purpose of a 'markup' in staffing agency pricing?
Answer: To cover agency overhead, profit, taxes, and benefits beyond the base pay rate
The agency markup above the worker's pay rate covers employer taxes (FICA, FUTA, SUTA), workers' comp, benefits, overhead, and profit margin.
Which payroll tax is split equally between the employer (staffing agency) and the employee?
Answer: FICA (Social Security and Medicare)
FICA taxes (Social Security at 6.2% and Medicare at 1.45%) are each paid at the same rate by both employer and employee, totaling 15.3% combined.
When must overtime be paid to a non-exempt staffing employee under federal law?
Answer: After 40 hours in a workweek
Under the FLSA, non-exempt employees must receive at least 1.5 times their regular rate for all hours worked beyond 40 in a single workweek.