Practice Quiz

DSST Human Resource Management Exam Prep

Category - Free DSST HR Test Prep

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Which of the following is the correct term for an arrangement in which an employee is paid a portion of their income at a later stage in life?
  1. Late pay
  2. Deferred pay
  3. Incentives
  4. Stock options
Explanation
Answer - B - Deferred pay is the correct term for an arrangement in which an employee is paid a portion of their income at a later stage in life.

Key Takeaway: Deferred compensation is an arrangement for a portion of an employee`s income to be paid out at a future date to compensate the actual income. Good examples of deferred compensation are retirement plans, pensions, life insurance plans, and stock options.
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