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HRCI SPHR Practice Test - Questions Answers, Page 7
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Question 61
DRAG DROP
Drag and drop the compensations beside their corresponding descriptions.
Answer:
At the broadest level, compensation and benefits, also referred to as total rewards, can be described as an exchange of payment from an employer for the services provided by its employees. The components of total rewards package are as follows:
Monetary compensation: Monetary compensation includes any costs the organization incurs for the benefit of employees, such as all forms of cash compensation, 401(k) matching, medical care premiums, pension plans, and paid time off. Other kinds of rewards include benefits that support the organization's culture such as stock options, Employee Stock Ownership Programs (ESOPs), and incentive plans.
Nonmonetary compensation: Nonmonetary compensation includes nontraditional work life balance benefits such as telecommuting, on site childcare, and flex time.
Direct compensation: Direct compensation includes payments made to employees that are associated with wages and salaries. This includes base pay, variable compensation, and pay for performance.
Indirect compensation: Indirect compensation consists of any employee payments not associated with wages and salaries. This includes fringe benefits such as vacation, sick, and holiday pay; insurance premiums paid on behalf of employees; leaves of absence; 401(k) or other pension plans; and government mandated benefits such as Social Security or Family and Medical Leave Act (FMLA) and other benefits.
Chapter: Compensation and Benefits
Objective: Total Rewards Defined
Question 62
Which of the following is the process of systematically determining a relative internal value of a job in an organization?
Recruitment
Ranking method
Job evaluation
Salary range
Answer option C is correct.
Job evaluation is the process of systematically determining a relative internal value of a job in an organization. In all cases, the idea is to evaluate the job, not the person doing it. Job evaluation is the process of determining the worth of one job in relation to that of the other jobs in a company so that a fair and equitable wage and salary system can be established.
Answer option A is incorrect. Recruitment refers to the process of attracting, screening, and selecting qualified people for a job at an organization or firm.
Answer option B is incorrect. The ranking method requires evaluators to compare the value of jobs to one another.
Answer option D is incorrect. A salary range is the spread between the minimum and maximum pay for the job grade.
Chapter: Compensation and Benefits
Objective: Total Rewards Defined
Question 63
As a Senior HR Professional, you should be familiar with intrinsic rewards and extrinsic rewards that your company provides for its employees. Which of the following is an example of an extrinsic reward?
Satisfaction from challenging and exciting assignments
Cash compensation
Esteem from working with other talented people
On-site cafeteria
Answer option C is correct.
Esteem from working with other talented people is an extrinsic reward.
Answer option A is incorrect. Satisfaction from challenging and exciting assignments is an example of an intrinsic reward.
Answer option B is incorrect. Cash compensation is a monetary reward for employment.
Answer option D is incorrect. An on-site cafeteria is an example of a non-monetary reward.
Chapter: Compensation and Benefits
Objective: Total Rewards Defined
Question 64
Your company is a government contractor with a current project of $250,000. As the Senior HR Professional you've been asked how the Walsh Healy Public Contracts Act will affect your organization. What is the Walsh Healy Public Contracts Act?
This act requires government contractors with contracts over $100,000 to pay their employees the prevailing wage for their local areas as established by the Secretary of Labor.
This act requires government contractors in states that have minimum wages set higher than federal minimum wage act to abide by the state minimum wage requirements.
This act requires government contractors in states that have minimum wages set higher than federal minimum wage act to abide by the state minimum wage requirements unless the workers do not live in the state where the contracted work is being performed.
This act requires government contractors with contracts over $10,000 to pay their employees the prevailing wage for their local areas as established by the Secretary of Labor.
Answer option D is correct.
The Walsh Healy Public Contracts Act requires government contractors with contracts of more than $10,000 to pay their employees the wage of the local areas as established by the Secretary of Labor.
Answer option A is incorrect. This statement is close to accurate, but the contract amount isn't $100,000, it is only $10,000.
Answer option B is incorrect. This statement is totally false and incorrect. The Walsh Healy Public Contracts Act does not address the Fair Labor Standards Act for minimum payment.
Answer option C is incorrect. This statement is totally false and incorrect. The Walsh Healy Public Contracts Act does not address the Fair Labor Standards Act for minimum payment.
Chapter: Compensation and Benefits
Objective: Total Rewards Defined
Question 65
Gina is a receptionist for her company and she is a non-exempt employee. She works between the hours of 8AM and 5PM. During the day she is required to be at the front desk at all times, except for small breaks to use the restroom. Gina is often required by her company to remain at the desk for her lunch. When Gina has to eat her lunch at the front desk is she to be compensated for this time or not?
No, because she is non-exempt
No, because she is eating lunch
Yes, because she is non-exempt
Yes, because she is required to be at the desk
Answer option D is correct.
Under the Fair Labor Standards Act, rest periods and meal periods are not required but when they are provided, the time periods are subject to its requirements. Meal periods of 30 minutes or longer are not compensable unless the employee is required to work during the meal.
Answer option A is incorrect. The non-exempt status does not affect the payment of the requirements to work through lunch.
Answer option B is incorrect. Gina may be eating lunch, but she is required to stay at the front desk during her meal.
Answer option C is incorrect. The non-exempt status does not affect the payment of the requirements to work through lunch.
Chapter: Compensation and Benefits
Objective: Total Rewards Defined
Question 66
Your company would like to hire KJ, who is 17, for a summer job. How late can KJ work according to the Fair Labor Standards Act during the summer months?
KJ can work until 7 PM during the summer.
KJ can work until 9 PM during the summer.
KJ can work until 6 PM during the summer.
KJ can work until 8 PM during the summer.
Answer option B is correct.
KJ can work between the hours of 7 AM and 9 PM during the months of June 1 and Labor Day. At all other times of the year, KJ can only work between 7 AM and 7 PM.
Answer option A is incorrect. The 7 PM rule is only in effect after Labor Day and before June 1.
Answer option C is incorrect. 6 PM is not correct.
Answer option D is incorrect. 8 PM is not correct, as KJ may work until 9 PM.
Chapter: Compensation and Benefits
Objective: Total Rewards Defined
Question 67
The Hay System was developed in 1934 by Edward Hay and evaluates job using three factors. Which of the following factors is NOT one of the three elements of job evaluation of the Hay System?
Knowledge
Problem solving
Accountability
Experience
Answer option D is correct.
Experience is actually part of the knowledge factor and isn't its own factor in the Hay System.
Answer option A is incorrect. Knowledge is one of the three factors in the Hay System.
Answer option B is incorrect. Problem solving is one of the three factors in the Hay System.
Answer option C is incorrect. Accountability is one of the three factors in the Hay System.
Chapter: Compensation and Benefits
Objective: Total Rewards Defined
Question 68
Which of the following is an example of an involuntary deduction an employer may be required to retain from an employee's pay?
Tax levy
Medicare
State income tax
Federal income tax
Answer option A is correct.
A tax levy is an IRS order for an employer to retain funds from an employee's pay for taxes due in addition to current taxes.
A tax levy, under United States Federal law, is an administrative action by the Internal Revenue Service (IRS) under statutory authority, without going to court, to seize property to satisfy a tax liability. The levy includes the power of distraint and seizure 'by any means'. The general rule is that no court permission is required for the IRS to execute a section 6331 levy.
Answer option B is incorrect. Medicare isn't an involuntary deduction.
Answer option C is incorrect. State income taxes aren't an involuntary deduction.
Answer option D is incorrect. Federal income taxes aren't an involuntary deduction.
Chapter: Compensation and Benefits
Objective: Total Rewards Defined
Question 69
Which of the following is described in the statement below?
'If an employee is called by the employer for work and there is no work available, the employer may be required by state law or employment agreements to pay for a minimum number of hours of work.'
Reporting pay
Hazard pay
Gross pay
Base pay
Answer option A is correct.
If an employee is called by the employer for work and there is no work available, the employer may be required by state law or employment agreements to pay for a minimum number of hours of work. This is known as reporting pay.
Answer option B is incorrect. Hazard pay is additional pay for working in dangerous conditions.
Answer option C is incorrect. Gross pay is the amount earned by an employee before taxes are not paid.
Answer option D is incorrect. Base pay is the foundation of an employer's compensation program because it reflects the value placed on individual jobs by the organization.
Chapter: Compensation and Benefits
Objective: Total Rewards Defined
Question 70
An employee earning $22,500 per year supervises three employees and spends 35 hours per week on essential job duties that require discretion and independent judgment. Which of the following describes this employee?
Exempt, based on the executive exemption test
Exempt, based on the administrative exemption test
Nonexempt, based on the salary basis requirement
Nonexempt
Answer option C is correct.
Effective in 2004, employees must be paid a minimum of $455 per week to be exempt from FLSA requirements. This employee earns only $432.69 per week. ($22,500/52 weeks = $432.69.) Although D is also correct, the best answer is the one that explains why. See Chapter 6 for more information.
Chapter: Compensation and Benefits
Objective: Compensation
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