Compensation, Benefits & Payroll Administration Flashcards
6 cards from real CVPM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Compensation, Benefits & Payroll Administration flashcards as text
Under the Fair Labor Standards Act (FLSA), which type of veterinary practice employee is typically classified as 'exempt' from overtime pay requirements?
Answer: A salaried licensed veterinarian performing professional duties
The FLSA exempts employees who meet both a salary basis test (paid a set salary above the threshold) and a duties test (professional, executive, or administrative roles). Licensed veterinarians performing professional duties typically qualify for the learned professional exemption. Hourly employees — regardless of role — are generally non-exempt and entitled to overtime.
The most common production-based compensation model for associate veterinarians bases their production pay on:
Answer: A percentage of the gross revenue the associate personally generates
Production-based veterinary compensation typically pays associates a percentage (commonly 18–23%) of the gross revenue they directly generate. This aligns associate incentives with revenue production and is the industry-standard model. Flat bonuses and appointment counts do not accurately reflect revenue contribution.
Which employee benefit is legally REQUIRED for eligible employees at practices with 50 or more employees under federal law?
Answer: Family and Medical Leave (FMLA)
The Family and Medical Leave Act (FMLA) requires covered employers (50+ employees within 75 miles) to provide eligible employees up to 12 weeks of unpaid, job-protected leave per year. Health insurance, paid leave, and retirement matching are common benefits but are not mandated by federal law for most private employers.
When calculating a non-exempt employee's regular rate of pay for overtime purposes under FLSA, which payment MUST be included?
Answer: A non-discretionary production bonus promised in advance
Non-discretionary bonuses — those promised in advance or tied to a formula the employee knows about — must be factored into the regular rate of pay when calculating overtime. Discretionary bonuses, benefits contributions, and expense reimbursements are excluded from this calculation.
A practice manager notices that two veterinary technicians with identical experience, tenure, and performance reviews are paid differently. Conducting a compensation equity audit in this situation is primarily intended to:
Answer: Ensure pay differences are justified by legitimate factors and not protected characteristics
A compensation equity audit examines whether pay disparities are based on legitimate, documented factors (seniority, certifications, performance) rather than protected characteristics such as gender, race, or age. Unjustified gaps create legal exposure under the Equal Pay Act and Title VII.
A veterinary practice that misclassifies an employee as an independent contractor faces which PRIMARY risk?
Answer: Back taxes, penalties, and interest owed to the IRS and state agencies for unpaid payroll taxes
Misclassifying an employee as an independent contractor means the employer has failed to withhold and remit payroll taxes (Social Security, Medicare, federal/state income tax). The IRS can assess back taxes, substantial penalties, and interest for all misclassified periods. Additional liability may arise under state labor laws for unpaid benefits.