Total Rewards Exam Study Guide
Solutions
Base pay - ANSWER✔✔-Basic compensation an employee receives,
usually as a wage or salary.
Compa-ratio - ANSWER✔✔-Pay level divided by the midpoint of the pay
range..
Copeland "Anti-Kickback" Act - ANSWER✔✔-Act that prohibits federal
contractors from receiving kickbacks from employees or subcontractors for
wages earned on federal projects.
Defined contribution plan - ANSWER✔✔-Plan in which the employer and
sometimes the employee make an annual payment to the employee's
retirement plan account.
Employee Retirement Income Securtiy Act (ERISA) - ANSWER✔✔-Act that
established uniform minimum standards for employer-sponsored
retirement and health and welfare benefit programs.
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,Exempt employees - ANSWER✔✔-Employees who are excluded from
FLSA overtime pay requirements.
Fee-for-service health-care plan - ANSWER✔✔-Full-choice health-care plan
that allows covered employees to go to any qualified physician or hospital
and submit claims to the insurance company; also known as indemnity
health-care plan.
Gainsharing plans - ANSWER✔✔-Group incentives where a portion of the
gains an organization realizes from group efforts is shared with the group.
Group-term life insurance - ANSWER✔✔-Form of insurance carried by
employers for their employees that provides a lump-sum payment to the
employee's beneficiaries.
Health saving account (HSA) - ANSWER✔✔-Tax-sheltered savings account
similar to an IRA but created primarily to pay for medical expenses.
Individual retirement accounts (IRAs) - ANSWER✔✔-Tax-defferred
accounts to which wage earners can contribute an amount up to a yearly
maximum.
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,Job ranking - ANSWER✔✔-Evaluation method that establishes a hierarchy
of jobs from lowest to highest based on overall importance to the
organization.
Maturity curves - ANSWER✔✔-Correlate pay with time spent in a
professional field such as teaching or research.
Multinational companies (MNCs) - ANSWER✔✔-Companies that conduct
business and have offices in a number of different countries.
Overtime pay - ANSWER✔✔-Required for nonexempt workers under
FLSA at 1.5 times the regular rate of pay for hours worked over 40 in a
workweek.
Pension Benefit Guaranty Corporation (PBGC) - ANSWER✔✔-Set up by
ERISA to insure payment of benefits in the event that a private-sector
defined benefit pension plan terminates with insufficient funds to pay the
benefits.
Point-of-service-(POS) organization - ANSWER✔✔-Combination of a PPO
and an HMO; provides direct access to specialists.
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, Productivity-based pay - ANSWER✔✔-Pay based on the quantity of work
and outputs that can be accurately measured.
Red-circle rates - ANSWER✔✔-Describe situation s where employee's pay
is above the range maximum.
Salary compression - ANSWER✔✔-Occurs when there is only a small
difference in pay between employees regardless of their skills, experience,
or seniority; also know as pay compression.
Service Contract Act - ANSWER✔✔-Act that extended prevailing wage
rate and benefit requirements to employers provding services under
federal goverment contracts.
Social Security - ANSWER✔✔-Social Security Administration progrom that
provides retirement, disability, death, and survivor's benefits.
Tax Reform Act - ANSWER✔✔-Act that made significant changes in
employee benefit programs, especially retirement plans.
Travel Pay - ANSWER✔✔-Typically paid to nonexempt workers for the
time they spend traveling to or between work assignments.
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Solutions
Base pay - ANSWER✔✔-Basic compensation an employee receives,
usually as a wage or salary.
Compa-ratio - ANSWER✔✔-Pay level divided by the midpoint of the pay
range..
Copeland "Anti-Kickback" Act - ANSWER✔✔-Act that prohibits federal
contractors from receiving kickbacks from employees or subcontractors for
wages earned on federal projects.
Defined contribution plan - ANSWER✔✔-Plan in which the employer and
sometimes the employee make an annual payment to the employee's
retirement plan account.
Employee Retirement Income Securtiy Act (ERISA) - ANSWER✔✔-Act that
established uniform minimum standards for employer-sponsored
retirement and health and welfare benefit programs.
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 1/34
,Exempt employees - ANSWER✔✔-Employees who are excluded from
FLSA overtime pay requirements.
Fee-for-service health-care plan - ANSWER✔✔-Full-choice health-care plan
that allows covered employees to go to any qualified physician or hospital
and submit claims to the insurance company; also known as indemnity
health-care plan.
Gainsharing plans - ANSWER✔✔-Group incentives where a portion of the
gains an organization realizes from group efforts is shared with the group.
Group-term life insurance - ANSWER✔✔-Form of insurance carried by
employers for their employees that provides a lump-sum payment to the
employee's beneficiaries.
Health saving account (HSA) - ANSWER✔✔-Tax-sheltered savings account
similar to an IRA but created primarily to pay for medical expenses.
Individual retirement accounts (IRAs) - ANSWER✔✔-Tax-defferred
accounts to which wage earners can contribute an amount up to a yearly
maximum.
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 2/34
,Job ranking - ANSWER✔✔-Evaluation method that establishes a hierarchy
of jobs from lowest to highest based on overall importance to the
organization.
Maturity curves - ANSWER✔✔-Correlate pay with time spent in a
professional field such as teaching or research.
Multinational companies (MNCs) - ANSWER✔✔-Companies that conduct
business and have offices in a number of different countries.
Overtime pay - ANSWER✔✔-Required for nonexempt workers under
FLSA at 1.5 times the regular rate of pay for hours worked over 40 in a
workweek.
Pension Benefit Guaranty Corporation (PBGC) - ANSWER✔✔-Set up by
ERISA to insure payment of benefits in the event that a private-sector
defined benefit pension plan terminates with insufficient funds to pay the
benefits.
Point-of-service-(POS) organization - ANSWER✔✔-Combination of a PPO
and an HMO; provides direct access to specialists.
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 3/34
, Productivity-based pay - ANSWER✔✔-Pay based on the quantity of work
and outputs that can be accurately measured.
Red-circle rates - ANSWER✔✔-Describe situation s where employee's pay
is above the range maximum.
Salary compression - ANSWER✔✔-Occurs when there is only a small
difference in pay between employees regardless of their skills, experience,
or seniority; also know as pay compression.
Service Contract Act - ANSWER✔✔-Act that extended prevailing wage
rate and benefit requirements to employers provding services under
federal goverment contracts.
Social Security - ANSWER✔✔-Social Security Administration progrom that
provides retirement, disability, death, and survivor's benefits.
Tax Reform Act - ANSWER✔✔-Act that made significant changes in
employee benefit programs, especially retirement plans.
Travel Pay - ANSWER✔✔-Typically paid to nonexempt workers for the
time they spend traveling to or between work assignments.
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 4/34
