HRCI Compensation and Benefits 2

Question 1

Under COBRA, how long may a terminated employee typically continue group health coverage?

Accepted Answer

Up to 18 months

Answer

Up to 6 months

Answer

Up to 36 months for all qualifying events

Answer

Indefinitely at no cost

Question 2

What is 'job evaluation' in the context of compensation?

Accepted Answer

A systematic process of determining the relative worth of jobs within an organization

Answer

A performance appraisal of an individual employee

Answer

A market salary survey

Answer

A legal audit of wage compliance

Question 3

Which term describes compensation paid to employees for work not performed, such as holidays and vacation?

Accepted Answer

Paid time off (PTO) / paid leave

Answer

Deferred compensation

Answer

Supplemental pay

Answer

Shift differential

Question 4

What is the purpose of a 'compa-ratio' in compensation management?

Accepted Answer

To compare an employee's actual salary to the midpoint of their pay range

Answer

To calculate the company's total compensation cost

Answer

To measure the ratio of exempt to non-exempt employees

Answer

To compare benefits costs year over year

Question 5

What distinguishes a 'merit increase' from a 'cost-of-living adjustment (COLA)'?

Accepted Answer

Merit increases are tied to individual performance; COLAs apply uniformly to offset inflation

Answer

Merit increases are mandatory by law; COLAs are discretionary

Answer

COLAs only apply to union employees; merit increases apply to exempt staff

Answer

Merit increases reduce base pay; COLAs increase it

Question 6

Under the ACA, what is the 'employer mandate' for applicable large employers (ALEs)?

Accepted Answer

Offer affordable, minimum value health coverage to full-time employees or face potential penalties

Answer

Provide dental and vision coverage to all employees

Answer

Fund an HSA for each enrolled employee

Answer

Pay 100% of employee health insurance premiums