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2024 APHR - COMPENSATION AND BENEFITS EXAM QUESTIONS WITH CORRECT ANSWERS
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2024 APHR - COMPENSATION AND BENEFITS EXAM QUESTIONS WITH CORRECT ANSWERS
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2024 APHR - COMPENSATION ANDBENEFITS EXAM QUESTIONS WITH
CORRECT ANSWERS
Flexible Benefit Plans - CORRECT ANSWERS-Section 125 of the IRS Code
- Premium only plans
- Flexible spending accounts (FSA)
- Cafeteria plan
- Health reimbursement account (HRA)
- Health savings account (HSA) 2004-2005
- Adverse selection
Fair Labor Standards Act, FLSA (1938) - CORRECT ANSWERS-Establishes a
minimum wage, overtime provision, and child labor regulations.
Enforced by the Wage and Hour Division of the Department of Labor.
Applies to most non-managerial employees in a private industry.
Federal minimum wage - CORRECT ANSWERS-The current federal minimum
wage is $7.25 per hour, and has not increased since July 2009
Tipped employees may be paid $2.13/hour, however wages plus tips must
equal at least minimum wage.
State minimum wage requirements may be higher.
WA state:
12.00 USD per hour
Jan 1, 2019
Types of Defined Compensation Plans
- Vesting - CORRECT ANSWERS-- The right the employee has to the employer
provided funds in a defined-contribution plan
- The employee may not own the employer dollars in the plan until vested
Types of Defined Compensation Plans Vesting
Types of Vesting - CORRECT ANSWERS-Cliff vesting: must be member for
specified period of time; then all employers contributions become employees
,Gradual, or Graded Vesting: employer contribution belongs to employee in
specified percentage amounts over time
Types of Defined Compensation Plans Vesting
Vesting schedules - CORRECT ANSWERS-- Maximums set by ERISA
- For employer matching contributions 3 years cliff for 6 year graded
- For employer profit sharing contributions 5 year cliff or 7 year graded
ERISA Qualified Retirement Plans - CORRECT ANSWERS-- Retirement plans
that meet ERISA fiduciary and reporting and disclosure standards may
qualify under the IRS Code to receive favorable tax treatment
- Employee contributions to the plan are tax deferred until retirement
- Employer contributions are tax deductible for the current year
Non-Qualified (for ERISA) Retirement Plans - CORRECT ANSWERS-- Employee
benefit plans that do not adhere to strict IRS standards
- Cover only select groups of employees
- Do not receive favorable tax treatment
- Often used to provide additional, non-tax deferred, retirement benefits for
executives
Older Workers Benefit Protection Act (OWBPA) 1990 - CORRECT ANSWERS-
This is an Amendment to the Age Discrimination in Employment Act (ADEA)
- Employers must provide workers over 40 years of age with benefits equal
to those offered to younger employees unless there is greater cost for
providing the benefits to older workers
- Employer cannot stop or lower contributions to employee retirement plans
when reach a certain age
Overtime - CORRECT ANSWERS-For hours worked in excess of a 40-hour
workweek, covered employees must be paid at least time and a half their
hourly rate of pay.
Includes all "pay", including bonus, shift differential, etc.
Shift differential refers to the extra compensation a staff member receives
for hours worked that are outside the hours of 8:00 a.m. to 5:00 p.m.,
Monday through Sunday. A typical shift differential schedule would consist of
hours worked between 5:00 p.m. and 8:00 a.m., Monday through Sunday.
Does not include paid time off.
Compensatory Time in Lieu of Overtime Pay - CORRECT ANSWERS-An hour
and 1/2 off at some later date for every hour worked over 40 per week,
instead of paying overtime.
, Also called "comp time".
Generally illegal for private employers. May offset time within same work
week - work less one day to offset excess hours worked another day.
Federal, state, and local governments can offer comp time, in certain
circumstances. - up to 240 hours (30 days)/year; police/fire 480 hours (60
days)/year
Exempt and Non-exempt status - CORRECT ANSWERS-Non-exempt: must be
paid for all hours worked; must comply with overtime provisions of the FLSA;
non-exempt employees must be paid overtime for hours worked over 40
hours per week
Exempt from the provisions of the Fair Labor Standards Act, not entitled to
overtime pay.
FLSA Salary Tests for determining exempt status - CORRECT ANSWERS-
UNDER $23,660/year ($455/wk) = definitely non-exempt
EXCEPTION: If employee receives non-discretionary bonuses and incentive
payments (including commissions). This extra payment may only be used to
satisfy up to 10% of the standard salary level. These are usually bonuses for
productivity and profitability. These payments must be paid on a quarterly or
more frequently basis.
"Super salary" test for highly-compensated employees
IF PAID AT LEAST $100,000/year, most likely exempt, especially if
customarily and regularly perform at least one of the duties of an exempt
executive, administrative or professional employee.
List of Professions Exempt from FLSA - CORRECT ANSWERS-(1) Business
Owner
(2) Executive
(3) Creative Professional
(4) Learned Professional
(5) Computer-related (some)
(6) Outside Salespersons
Executive Exemption to FLSA - CORRECT ANSWERS-- Primary duty must be
managing the enterprise, or managing a customarily recognized department
or subdivision of the enterprise;
- Must customarily and regularly direct the work of at least two or more other
full-time employees or their equivalent; and,
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