External Equity Involves Paying Workers at a Rate Perceived to Be

question 80

True/False

External equity involves paying workers at a rate perceived to be fair compared to what the market pays.

---

Definitions:

Current Earnings

The net income that a company has generated over a specific period, excluding any non-operational or extraordinary items.

FICA Tax

A federal payroll tax that funds Social Security and Medicare, evenly split between employers and employees.

Medicare

A federal health insurance program in the United States for people aged 65 and older, and for some younger people with disabilities.

Federal Income Tax

A tax by the U.S. federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.