CSP CSP Compensation & Benefits Administration 2

Question 1

Under the Affordable Care Act (ACA), at how many full-time equivalent employees must a staffing agency offer health coverage to avoid penalties?

Accepted Answer

50 FTEs

Answer

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.

Question 2

Which federal law governs pension and benefit plan requirements for staffing agency employees?

Accepted Answer

ERISA

Answer

ERISA (Employee Retirement Income Security Act) sets minimum standards for pension and health benefit plans in private industry, including those offered by staffing agencies.

Question 3

What is a 'pay stub' requirement under most U.S. state wage laws for staffing employees?

Accepted Answer

Employees must receive an itemized statement of wages and deductions each pay period

Answer

Most states require employers to provide employees with an itemized pay stub each pay period showing gross wages, deductions, and net pay.

Question 4

What is the purpose of a 'markup' in staffing agency pricing?

Accepted Answer

To cover agency overhead, profit, taxes, and benefits beyond the base pay rate

Answer

The agency markup above the worker's pay rate covers employer taxes (FICA, FUTA, SUTA), workers' comp, benefits, overhead, and profit margin.

Question 5

Which payroll tax is split equally between the employer (staffing agency) and the employee?

Accepted Answer

FICA (Social Security and Medicare)

Answer

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.

(CSP) Certified Staffing Professional Practice Test

(CSP) Certified Staffing Professional Practice Test

CSP CSP Compensation & Benefits Administration 2