Employee Compensation Components Final Assessment

Question: What defines withholding?

Answer: Amount of wages which are not included in an employee’s paycheck

Question: What is the difference in a Flexible spending account (FSA) and health saving amount (HSA)?

Answer: HSA belongs to the employee while FSA belongs to the employer

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

Answer: direct deposit

Question: what is a mandatory document to be completed upon hire?

Answer: W-4

Question: What is not considered a mandated deduction?

Answer: sales tax

Question: What is overtime pay rate?

Answer: Time-and-a-half

Question: What is a pension plan?

Answer: a form of retirement plan in which employers contribute money to a plan which provides employees a monthly income during retirements

Question: How often are paychecks stubs provided?

Answer: every pay period

Question: Someone is paid $550 per week, but only brings home $375 due to deductions. What is their net earnings?

Answer: $375

Question: What is a meant motive an employee to exceed organizational expectations?

Answer: incentives