Employee Benefits Exam 1
– Chapter 1 Study Guide
and Key Concepts
1 of 7 Guidehttps://www.stuvia.com/dashboard!@_)#*)(@$)($@*($@)($@*_ 1 Employee Benefits Exam 1 – Chapter 1 Study Guide and Key Concepts.pdf
, Employee Benefits Exam 1 [Ch. 1] Page 2 2026-04-01
The (3) components of employee benefits 1. Adjustments to core compensation
2. Legally required employee benefits
3. Discretionary employee benefits
Examples of adjustments to core compensation COLA, seniority pay, merit pay, incentive pay, person-focused pay
Examples of legally required employee benefits Old-age/survivor/disability insurance, medicare, unemployment insurance,
workers comp, family and medical leave
Examples of discretionary employee benefits Income and health protections (sick leave), paid time-off (vacation,
holidays), accommodation and enhancement (wellness programs or
educational assistance)
Seniority pay pay increases based on length of service
Merit pay pay increases based on job performace
Incentive pay rewards based on attaining predetermined work objectives
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