HRB FINAL CERTIFICATION SCRIPT
2026 QUESTIONS WITH SOLUTIONS
GRADED A+
◍ Who pays income tax?.
Answer: all individuals who are resident in the UK
◍ The Equal Pay Act requires:.
Answer: equal pay for men and women doing substantially similar work.
◍ How is income tax calculated?.
Answer: taxable income earned in the tax year
◍ What is the tax year?.
Answer: 6 April 2025 to 5th April 2026
◍ Merit pay systems often fail for all but which of the following reasons?.
Answer: Link between performance and rewards is too strong.
◍ Team incentives provide opportunity for each team member to receive a
bonus based on the:.
Answer: output of the team as a whole
◍ One way to classify performance incentives is according to the ____
targeted..
Answer: level of performance
◍ What are examples of exempt income?.
Answer: income from ISAs, interest from National Savings Certificates,
winnings, social security benefits, scholarships, income tax repayment
interest, apprenticeship bursaries, compensation made under qualifying
payment schemes
◍ What is chargeable income?.
, Answer: trading income, property income, interest income, dividend income
◍ In the income tax computation is income shown as gross or net?.
Answer: gross
◍ In the fact that past merit payments are incorporated into an individual's
base salary allowing formerly productive employees to slack off is known
as:.
Answer: the annuity problem
◍ What is the net income?.
Answer: the total of all chargeable income less reliefs
◍ Pay practices must be designed not only to attract and retain employees but
also to ensure that _____ do not become excessive in relation to those of
competing employers..
Answer: labor costs
◍ What are the three types of income?.
Answer: non-savings income, savings income and dividend income
◍ What is taxable income?.
Answer: net income after the deduction of the tax free personal allowance
(PA)
◍ In the United States, about 90 percent of large and medium-sized companies
now offer some kind of _____ such as profit-sharing and bonus awards..
Answer: variable pay
◍ ________ revenue theory in labor economics holds that unless an employee
can produce a value equal to the value of received wages, it will not be
worthwhile to hire that worker..
Answer: marginal
◍ What is the personal allowance for tax year 25/26?.
Answer: £12,570
◍ When is the PA available in full?.
Answer: in the tax year of death/birth and all inbetween
, ◍ When can PA be used?.
Answer: only against income not other taxes
◍ Sarbanes-Oxley requires that:.
Answer: executives cannot retain bonuses or profits from selling company
stock if they mislead the public about the financial health of the company.
◍ The process of ranking jobs in terms of their relative worth to a firm is
called:.
Answer: job evaluation
◍ When is the PA withdrawn?.
Answer: when individuals have income over £100,000
◍ Which of the following is NOT considered a permanent cutback?.
Answer: pay freezes
◍ Gain sharing plans consists of all of the following except which of the
following elements?.
Answer: an internal equity
◍ How do you calculate the personal allowance available for someone with
income over £100,000?.
Answer: (adjusted net income (ADI) - £100,000) x 1/2
◍ Title VII of the _____________ Act states that top executives in companies
receiving government support can retract bonuses, retention awards, or
incentives paid to the top five senior executive officers or the next 20 most
highly compensated employees based on corporate information that is later
found to be inaccurate..
Answer: American Recovery and Reinvestment
◍ One solution to the problem of pay compression is to institute:.
Answer: maximum rates of pay
◍ Which type of pay structure is feasible if all jobs are benchmark jobs and
direct matches can be found in the market?.
Answer: market-based pay system
2026 QUESTIONS WITH SOLUTIONS
GRADED A+
◍ Who pays income tax?.
Answer: all individuals who are resident in the UK
◍ The Equal Pay Act requires:.
Answer: equal pay for men and women doing substantially similar work.
◍ How is income tax calculated?.
Answer: taxable income earned in the tax year
◍ What is the tax year?.
Answer: 6 April 2025 to 5th April 2026
◍ Merit pay systems often fail for all but which of the following reasons?.
Answer: Link between performance and rewards is too strong.
◍ Team incentives provide opportunity for each team member to receive a
bonus based on the:.
Answer: output of the team as a whole
◍ One way to classify performance incentives is according to the ____
targeted..
Answer: level of performance
◍ What are examples of exempt income?.
Answer: income from ISAs, interest from National Savings Certificates,
winnings, social security benefits, scholarships, income tax repayment
interest, apprenticeship bursaries, compensation made under qualifying
payment schemes
◍ What is chargeable income?.
, Answer: trading income, property income, interest income, dividend income
◍ In the income tax computation is income shown as gross or net?.
Answer: gross
◍ In the fact that past merit payments are incorporated into an individual's
base salary allowing formerly productive employees to slack off is known
as:.
Answer: the annuity problem
◍ What is the net income?.
Answer: the total of all chargeable income less reliefs
◍ Pay practices must be designed not only to attract and retain employees but
also to ensure that _____ do not become excessive in relation to those of
competing employers..
Answer: labor costs
◍ What are the three types of income?.
Answer: non-savings income, savings income and dividend income
◍ What is taxable income?.
Answer: net income after the deduction of the tax free personal allowance
(PA)
◍ In the United States, about 90 percent of large and medium-sized companies
now offer some kind of _____ such as profit-sharing and bonus awards..
Answer: variable pay
◍ ________ revenue theory in labor economics holds that unless an employee
can produce a value equal to the value of received wages, it will not be
worthwhile to hire that worker..
Answer: marginal
◍ What is the personal allowance for tax year 25/26?.
Answer: £12,570
◍ When is the PA available in full?.
Answer: in the tax year of death/birth and all inbetween
, ◍ When can PA be used?.
Answer: only against income not other taxes
◍ Sarbanes-Oxley requires that:.
Answer: executives cannot retain bonuses or profits from selling company
stock if they mislead the public about the financial health of the company.
◍ The process of ranking jobs in terms of their relative worth to a firm is
called:.
Answer: job evaluation
◍ When is the PA withdrawn?.
Answer: when individuals have income over £100,000
◍ Which of the following is NOT considered a permanent cutback?.
Answer: pay freezes
◍ Gain sharing plans consists of all of the following except which of the
following elements?.
Answer: an internal equity
◍ How do you calculate the personal allowance available for someone with
income over £100,000?.
Answer: (adjusted net income (ADI) - £100,000) x 1/2
◍ Title VII of the _____________ Act states that top executives in companies
receiving government support can retract bonuses, retention awards, or
incentives paid to the top five senior executive officers or the next 20 most
highly compensated employees based on corporate information that is later
found to be inaccurate..
Answer: American Recovery and Reinvestment
◍ One solution to the problem of pay compression is to institute:.
Answer: maximum rates of pay
◍ Which type of pay structure is feasible if all jobs are benchmark jobs and
direct matches can be found in the market?.
Answer: market-based pay system
