TREX Compensation & Benefits Fundamentals Rules 3

Question 1

What does 'market pricing' as a job evaluation method primarily rely on?

Accepted Answer

Comparison of jobs to external salary survey data

Answer

Market pricing establishes pay rates by matching jobs to external benchmark data from salary surveys rather than internal job evaluation factors.

Question 2

A 'flexible benefit plan' (cafeteria plan) is governed under which section of the Internal Revenue Code?

Accepted Answer

Section 125

Answer

Section 125 of the IRC allows employers to offer flexible benefit plans where employees choose among taxable and nontaxable benefits.

Question 3

Which concept describes the degree to which an organization's pay rates are above, below, or equal to the market?

Accepted Answer

Pay level

Answer

Pay level refers to the average pay of a job or pay structure relative to competitors in the external labor market.

Question 4

What is the primary purpose of conducting a job analysis in compensation management?

Accepted Answer

To gather systematic information about job duties and requirements

Answer

Job analysis systematically collects data on job duties, responsibilities, and qualifications, which forms the foundation for job evaluation and pay decisions.

Question 5

Which benefit is required by federal law for employers with 50 or more employees?

Accepted Answer

Family and Medical Leave Act (FMLA) leave

Answer

The FMLA requires covered employers (50+ employees) to provide eligible employees up to 12 weeks of unpaid, job-protected leave annually.

(TREX) WorldatWork Total Rewards Certification Practice Test

(TREX) WorldatWork Total Rewards Certification Practice Test

TREX Compensation & Benefits Fundamentals Rules 3