SPHR Total Rewards 3

Question 1

An SPHR is evaluating the compa-ratio for a job family. A compa-ratio of 85% indicates that:

Accepted Answer

The employee's pay is 15% below the midpoint of the pay range

Answer

A compa-ratio below 100% means the employee earns less than the midpoint; 85% means pay is 15% below the range midpoint.

Question 2

Which federal law requires employers to provide continuation of group health coverage to employees and dependents following qualifying events such as job loss?

Accepted Answer

COBRA

Answer

COBRA (Consolidated Omnibus Budget Reconciliation Act) mandates that employers offer continued health coverage to eligible individuals after qualifying events.

Question 3

A company uses job ranking as its job evaluation method. What is the biggest limitation of this approach?

Accepted Answer

It does not explain the relative degree of difference between jobs

Answer

Job ranking orders positions from highest to lowest but provides no quantitative measure of how much one job differs in value from another.

Question 4

Under Section 409A of the Internal Revenue Code, which nonqualified deferred compensation arrangement triggers significant tax penalties?

Accepted Answer

A plan that permits acceleration of deferred amounts outside of permissible exceptions

Answer

Section 409A penalizes plans that allow early acceleration of deferred compensation outside IRS-approved exceptions with immediate taxation and a 20% excise tax.

Question 5

A company notices its voluntary turnover is highest among employees with compa-ratios below 90%. This data most directly suggests:

Accepted Answer

Employees paid significantly below midpoint may be seeking better pay elsewhere

Answer

Low compa-ratios indicate pay below the market midpoint, which is strongly linked to employees leaving for higher compensation at other organizations.

SPHR - Senior Professional in Human Resources Practice Test

SPHR - Senior Professional in Human Resources Practice Test

SPHR Total Rewards 3