Question

1) What is it called when an employee is paid by producing a measurable output?

Answer:   A. An independent contractor B. Piecework C. A tipped employee D. None of these options

2) Which of the following is NOT an incentive plan?

Answer:   A. A stock option B. Cash for reaching a specified goal C. Sick pay D. Additional vacation days E. Profit-sharing plans

3) Marcus Allensworth is a waiter at a large restaurant. In addition to his tips, he is paid $5.25/hour. The amount of the hourly tip credit that Marcus' employer is utilizing is $ ______

4) When an employee earns a bonus that is considered to be a part of regular earnings, that bonus is classified as a(n) _____ bonus.

Answer:   A. incentive B. discretionary C. commission D. non-discretionary

Answer 1

1)

Option B: Piecework

Explanation:

Option A is incorrect because an independent contractor is a person, business, or corporation that provides goods or services under a written contract or a verbal agreement. Unlike employees, independent contractors do not work regularly for an employer but work as required, when they may be subject to law of agency.

Option B is correct because Piecework, or piece work pay, is paying an employee a fixed pay rate for each unit they produce. Piece rate pay is most common for a contractor employee. However, employees who are not contractors can be paid piecework pay, too. Piecework rates typically depend on the job and product produced.

Option C is incorrect because any employee working in an occupation in which he or she regularly receives more than $30 a month in tips is considered a tipped employee. A listing of wage and tip amounts required to be paid to tipped employees as determined by state law.

Option D is incorrect since option B is correct.

B)

Option C: Sick pay

Explanation:

Incentives are effective motivators when the objectives to be met are clearly stated upfront and when the incentives offered are desirable. Incentives are variable rewards granted according to level of achievement of specific results. Here all options other than sick leave are payment for performance or payment by results. sick leave will be granted with or without the level of achievement of specific results. Therefore, Option C is correct.

C)

$2

Explanation:

Current federal minimum wage = $7.25

Current hourly pay = $5.25

hourly tip credit utilized by employer = Current federal minimum wage-Current hourly pay

=$7.25 - $5.25

= $2

Therefore, hourly tip credit utilized by employer = $2

D)

Option D: non-discretionary

Explanation:
Option A is incorrect because Incentives are effective motivators when the objectives to be met are clearly stated upfront and when the incentives offered are desirable. Incentives are variable rewards granted according to level of achievement of specific results. Incentives are not considered to be a part of regular earnings

Option B is incorrect because discretionary bonus is the bonus for which a employee qualifies if he achieved a major goal or demonstrated exceptional performance. Discretionary bonus is not considered to be a part of regular earnings

Option C is incorrect because commission plans are based on the amount of money or revenue a salesperson earns in the sales they have made. This outlines how much the company will pay its salespeople for each sale. commissions are not considered to be a part of regular earnings.

Option D is correct because a non-discretionary bonus is a bonus that the employee is expected to be paid and it is usually given at the same time, either monthly, quarterly or annually. Because these bonuses are agreed upon ahead of time, they must be included in the regular rate of pay and the calculation of overtime. it is considered to be a part of regular earnings.