Employee Compensation Components Test

First and Last Name

Derek is paid $550 per week, but only brings home $375 due to deductions. Which of the following is Derek’s net earnings?

• $925
• $375
• $175

The electronic transfer of wages into an employee’s account refers to which of the following?

• Electronic funds wiring
• Direct deposit
• Automatic teller
• Option 4

What is a pension plan?

• A form of retirement plan in which employers contribute money to a plan which provides employees a monthly income during retirement
• A monetary safety net for a beneficiary upon the death of an employee
• A wage replacement program for employees who suffer from job-related injuries

Katie makes $13 per hour plus overtime. Last week she worked 47 hours when she usually only works 40 hours. What is her gross wage?

• $481
• $656.50
• $747.50

Which of the following is meant to motivate an employee to exceed organizational expectations?

• Paid leave
• Flexible spending account
• Incentives

Commission is the sum of money paid to an employee upon the completion of a task, typically selling a certain amount of goods or services.

• True
• False

What is the difference between a Flexible Spending Account (FSA) and a Health Savings Account (HSA)?

• HSAs belongs to the employee while FSAs belongs to the employer
• HSAs are taxed while FSAs are not
• HSAs do not allow employers to contribute to the account while FSAs do

What is the overtime pay rate?

• Time-and-a-half
• Double pay

Select all of the following which are an advantage to salaried employees.

• Better access to benefit packages and retirement plan options, Larger bonuses and more paid vacation
• May be exempt from earning overtime