CPFO Compensation & Benefits UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Step and grade compensation model - CORRECT ANSWER - -Civil Service Model
-Different grades and steps within each grade
-Steps may be spaced out with incremental pay increases
Key component of position control - CORRECT ANSWER - -Vacancy adjustments,
inflation impacts, and compensation approaches are all key components of and effective
budgeting of salary and wages.
Budgeting of salary and wages - CORRECT ANSWER - -Salaries and wages are largest
portion of expenditure budget.
-Need for accurate expenditure projections
-Manage headcount levels in light of cost constraints
Collective bargaining and compensation - CORRECT ANSWER - -Track positions
covered by collective bargaining agreements.
-Be aware of key dates
-More than salary, some agreements address overtime, holiday pay, shift differentials, uniform
allowances, and license/certification pay.
Employer compensation costs landscape (Private vs. Public) - CORRECT ANSWER -
Employer costs are higher per hour in public sector than in private.
FICA - CORRECT ANSWER - Federal Insurance Contribution Act - A US federal payroll
tax that is deducted from each paycheck.
Social Security and Medicare
,Fringe benefit - CORRECT ANSWER - Any financial extras beyond the regular pay -
retiree health insurance, retiree pension, company car, subsidized meals, bonuses. Tuition
reimbursement is no considered de minimis.
Limit before taxable is $5,250
Longevity of service - CORRECT ANSWER - Length of service
Employer-provided tuition assistance - CORRECT ANSWER - -Full or partial
reimbursement or loan.
-Policy must be tax compliant.
-Consider some type of repayment if employee terminates
-Not considered de minimis fringe benefit.
Paid Time Off (PTO) - CORRECT ANSWER - -Set number of days to be used by
employee for time off, either sick or vacation.
-Discourages people from accruing significant sick leave banks.
Merit pay model - CORRECT ANSWER - -Pay for performance system
Portable retirement plan - CORRECT ANSWER - -Defined contribution plan
-Retirement plan benefit is attached to the individual employee and not the employer.
FSLA Non-discretionary bonus - CORRECT ANSWER - -Included in the regular rate of
pay, unless qualified as excludable under another statutory provision.
-Employees know about, understand how to earn, and expect the bonus.
-Employer still has the option not to pay the bonus.
Importance for employer to track employee time - CORRECT ANSWER - -Determine
how much to pay
, -Determine leave time accrual and deductions
-Promote a culture of accountability
-Time entry options:
Electronic time cards, paper-based timecards, electronic time entry
Employees carryover vacation balance - CORRECT ANSWER - Policies that define
timing of accruals and year to year carryover of balances can have significant budgetary impacts.
Section 218 (int the Social Security Act) agreement - CORRECT ANSWER - A voluntary
yet irrevocable agreement between a state and the Social Security Administration and/or
Medicare Hospital Insurance that the state will provide these benefits (not the federal
government) to certain state and local government employment.
IRS Form 941 - CORRECT ANSWER - Payroll tax form filed quarterly to report and pay
federal payroll taxes, including Social Security Tax and Medicare.
FSA accounts - CORRECT ANSWER - Health Care FSA, Limited Expense Health FSA
and Dependent Care FSA
Qualifying life event
-employment status
-legal marital status
-number of dependents
-dependent's eligibility
-child or elder care provider
Federal minimum wage (history) - CORRECT ANSWER - -Current $7.25 established in
2009
-Started in 1938
-Amendments in 1961 & 1966
-Current structure with across the board changes in 1978
ACTUAL Exam Questions and CORRECT
Answers
Step and grade compensation model - CORRECT ANSWER - -Civil Service Model
-Different grades and steps within each grade
-Steps may be spaced out with incremental pay increases
Key component of position control - CORRECT ANSWER - -Vacancy adjustments,
inflation impacts, and compensation approaches are all key components of and effective
budgeting of salary and wages.
Budgeting of salary and wages - CORRECT ANSWER - -Salaries and wages are largest
portion of expenditure budget.
-Need for accurate expenditure projections
-Manage headcount levels in light of cost constraints
Collective bargaining and compensation - CORRECT ANSWER - -Track positions
covered by collective bargaining agreements.
-Be aware of key dates
-More than salary, some agreements address overtime, holiday pay, shift differentials, uniform
allowances, and license/certification pay.
Employer compensation costs landscape (Private vs. Public) - CORRECT ANSWER -
Employer costs are higher per hour in public sector than in private.
FICA - CORRECT ANSWER - Federal Insurance Contribution Act - A US federal payroll
tax that is deducted from each paycheck.
Social Security and Medicare
,Fringe benefit - CORRECT ANSWER - Any financial extras beyond the regular pay -
retiree health insurance, retiree pension, company car, subsidized meals, bonuses. Tuition
reimbursement is no considered de minimis.
Limit before taxable is $5,250
Longevity of service - CORRECT ANSWER - Length of service
Employer-provided tuition assistance - CORRECT ANSWER - -Full or partial
reimbursement or loan.
-Policy must be tax compliant.
-Consider some type of repayment if employee terminates
-Not considered de minimis fringe benefit.
Paid Time Off (PTO) - CORRECT ANSWER - -Set number of days to be used by
employee for time off, either sick or vacation.
-Discourages people from accruing significant sick leave banks.
Merit pay model - CORRECT ANSWER - -Pay for performance system
Portable retirement plan - CORRECT ANSWER - -Defined contribution plan
-Retirement plan benefit is attached to the individual employee and not the employer.
FSLA Non-discretionary bonus - CORRECT ANSWER - -Included in the regular rate of
pay, unless qualified as excludable under another statutory provision.
-Employees know about, understand how to earn, and expect the bonus.
-Employer still has the option not to pay the bonus.
Importance for employer to track employee time - CORRECT ANSWER - -Determine
how much to pay
, -Determine leave time accrual and deductions
-Promote a culture of accountability
-Time entry options:
Electronic time cards, paper-based timecards, electronic time entry
Employees carryover vacation balance - CORRECT ANSWER - Policies that define
timing of accruals and year to year carryover of balances can have significant budgetary impacts.
Section 218 (int the Social Security Act) agreement - CORRECT ANSWER - A voluntary
yet irrevocable agreement between a state and the Social Security Administration and/or
Medicare Hospital Insurance that the state will provide these benefits (not the federal
government) to certain state and local government employment.
IRS Form 941 - CORRECT ANSWER - Payroll tax form filed quarterly to report and pay
federal payroll taxes, including Social Security Tax and Medicare.
FSA accounts - CORRECT ANSWER - Health Care FSA, Limited Expense Health FSA
and Dependent Care FSA
Qualifying life event
-employment status
-legal marital status
-number of dependents
-dependent's eligibility
-child or elder care provider
Federal minimum wage (history) - CORRECT ANSWER - -Current $7.25 established in
2009
-Started in 1938
-Amendments in 1961 & 1966
-Current structure with across the board changes in 1978
