Human Resources Compensation & Benefits 2

Question 1

What is the purpose of a salary survey in compensation management?

Accepted Answer

To gather market data on competitive pay rates for benchmarking job positions

Answer

To audit payroll taxes

Answer

To calculate employee raises

Answer

To determine executive bonuses

Question 2

Under ERISA (Employee Retirement Income Security Act), what are plan fiduciaries required to do?

Accepted Answer

Act in the best interest of plan participants and beneficiaries

Answer

Guarantee investment returns

Answer

Provide unlimited investment options

Answer

Eliminate plan fees

Question 3

What is a 'defined contribution' retirement plan?

Accepted Answer

A plan where employer and/or employee contribute fixed amounts and the retirement benefit depends on investment performance

Answer

A plan where the employer guarantees a specific monthly retirement income

Answer

A government-mandated pension plan

Answer

A plan with no employee contribution

Question 4

What is 'pay equity' analysis?

Accepted Answer

Evaluating whether employees receive equal pay for equal work regardless of protected characteristics

Answer

Ensuring all employees receive the same salary

Answer

Setting executive pay ratios

Answer

Calculating overtime wages

Question 5

What does 'vesting' mean in the context of employer retirement contributions?

Accepted Answer

The period over which employees earn ownership of employer-contributed retirement funds

Answer

The process of enrolling in a retirement plan

Answer

The investment selection process

Answer

The retirement plan withdrawal process

Question 6

Under the ACA, what employer mandate applies to companies with 50+ full-time equivalent employees?

Accepted Answer

Offer affordable minimum essential health coverage or face potential penalties

Answer

Provide a minimum wage above federal standards

Answer

Match 401(k) contributions at 6%

Answer

Provide paid parental leave