HRCI - Compensation and Benefits With
Questions And Answers
flexible work hour plans - Answer - Plans in which employees usually must still work 40 hours per week
and typically 5 days a week but in which they have control over the starting and ending times for work
on each day.
pay ranges - Answer - A range of potential compensation amounts for employees who hold a specified
position.
Consumer Credit Protection Act - Answer - This act established that employers may be required to
withhold money from the paychecks of employees with certain financial debts, but also protects
employees from termination for those debts.
workers' compensation - Answer - A type of insurance that is allotted to employees who are injured at
or get an illness from their workplace.
Roth IRA - Answer - Contributions to these individual retirement plans are made after taxes have been
paid, and therefore when those funds are withdrawn, they are not subject to federal income tax.
shift pay - Answer - Additional pay given to workers to compensate them for working on less desirable
shifts, i.e., the second or third shift.
call-back pay - Answer - Extra money, above the base rate, paid to workers who are called back to work
after their regular hours are over and they have left the workplace.
traditional IRA - Answer - Contributions to these individual retirement plans are made with taxes being
paid at the outset. Funds are taxed when money is withdrawn, and an additional 10 percent tax penalty
is applied if contributors withdraw funds before they are eligible.
Pension Protection Act - Answer - This act protects employees when they are entitled to pension plans,
but those plans do not have the funds necessary to provide the promised benefits.
, skill pay - Answer - Pay that rewards employees for acquiring new skills.
Employee Retirement Income Security Act - Answer - A federal law that establishes minimum standards
for retirement and health plans.
Retirement Equity Act - Answer - This act reduced the existing age limits restricting participation in
pension plans, provided more protections for survivors of employees entitled to pensions, and restricted
conditions that could be placed on survivor plans.
Uniformed Services Employment and Reemployment Rights Act - Answer - This act was enacted to
protect the rights of military reservists who are called to duty in the armed forces.
Portal-to-Portal Act - Answer - This act determined that commute time is not compensable, but that
employers must compensate workers for performing job-related tasks outside of work hours or during
lunch breaks.
premium - Answer - The amount paid to an insurance company for an insurance policy or health care
coverage.
telecommuting - Answer - A work arrangement that permits an employee to work outside the office.
Employees who telecommute may work from home or in public spaces like coffee shops or libraries.
compressed work schedules - Answer - This approach to scheduling allows employees to do the same
number of hours of work but in fewer days than would be expected using a standard 5-day workweek.
For example, employees may work 10 hours a day, but only 4 days a week. Or employees may work 9
hours a day, but take every other Friday off.
base rate - Answer - Wages or salary before overtime pay, bonuses, or other incentive pay is
considered.
commissions - Answer - Earnings based on the number of total sales.
Questions And Answers
flexible work hour plans - Answer - Plans in which employees usually must still work 40 hours per week
and typically 5 days a week but in which they have control over the starting and ending times for work
on each day.
pay ranges - Answer - A range of potential compensation amounts for employees who hold a specified
position.
Consumer Credit Protection Act - Answer - This act established that employers may be required to
withhold money from the paychecks of employees with certain financial debts, but also protects
employees from termination for those debts.
workers' compensation - Answer - A type of insurance that is allotted to employees who are injured at
or get an illness from their workplace.
Roth IRA - Answer - Contributions to these individual retirement plans are made after taxes have been
paid, and therefore when those funds are withdrawn, they are not subject to federal income tax.
shift pay - Answer - Additional pay given to workers to compensate them for working on less desirable
shifts, i.e., the second or third shift.
call-back pay - Answer - Extra money, above the base rate, paid to workers who are called back to work
after their regular hours are over and they have left the workplace.
traditional IRA - Answer - Contributions to these individual retirement plans are made with taxes being
paid at the outset. Funds are taxed when money is withdrawn, and an additional 10 percent tax penalty
is applied if contributors withdraw funds before they are eligible.
Pension Protection Act - Answer - This act protects employees when they are entitled to pension plans,
but those plans do not have the funds necessary to provide the promised benefits.
, skill pay - Answer - Pay that rewards employees for acquiring new skills.
Employee Retirement Income Security Act - Answer - A federal law that establishes minimum standards
for retirement and health plans.
Retirement Equity Act - Answer - This act reduced the existing age limits restricting participation in
pension plans, provided more protections for survivors of employees entitled to pensions, and restricted
conditions that could be placed on survivor plans.
Uniformed Services Employment and Reemployment Rights Act - Answer - This act was enacted to
protect the rights of military reservists who are called to duty in the armed forces.
Portal-to-Portal Act - Answer - This act determined that commute time is not compensable, but that
employers must compensate workers for performing job-related tasks outside of work hours or during
lunch breaks.
premium - Answer - The amount paid to an insurance company for an insurance policy or health care
coverage.
telecommuting - Answer - A work arrangement that permits an employee to work outside the office.
Employees who telecommute may work from home or in public spaces like coffee shops or libraries.
compressed work schedules - Answer - This approach to scheduling allows employees to do the same
number of hours of work but in fewer days than would be expected using a standard 5-day workweek.
For example, employees may work 10 hours a day, but only 4 days a week. Or employees may work 9
hours a day, but take every other Friday off.
base rate - Answer - Wages or salary before overtime pay, bonuses, or other incentive pay is
considered.
commissions - Answer - Earnings based on the number of total sales.
