Compensation and Benefits Flashcards
7 cards from real PHR practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Compensation and Benefits flashcards as text
A total rewards strategy includes compensation, benefits, work-life balance, performance recognition, and:
Answer: Development and career opportunities
Total rewards encompasses development and career opportunities alongside pay, benefits, and recognition.
Which method bases pay rates directly on what competitors pay for benchmark jobs, using salary survey data?
Answer: Market pricing
Market pricing sets pay by matching benchmark jobs to external survey market rates.
Under the FLSA, the federal minimum wage tip credit allows employers to pay tipped employees a lower cash wage as long as tips bring them to at least:
Answer: The full minimum wage
The tip credit is valid only if cash wages plus tips equal at least the full minimum wage.
A nonqualified deferred compensation plan for a select group of executives is commonly called a:
Answer: Top-hat plan
Top-hat plans are unfunded nonqualified deferred compensation plans for a select group of management.
Which of the following is an example of a defined contribution retirement plan?
Answer: 401(k) plan
A 401(k) is a defined contribution plan where the benefit depends on contributions and investment returns.
The Davis-Bacon Act requires payment of prevailing wages on:
Answer: Federal construction contracts
Davis-Bacon mandates prevailing wages on federally funded construction projects above a threshold.
An employee earns a base salary plus commission. If the plan guarantees a minimum payout regardless of sales, that minimum is called a:
Answer: Draw
A draw is a guaranteed minimum advance against future commissions.