TriNet's Knowledge Practice Test

What does PEPM stand for?

Per Employee Per Month Price Every Person Monthly Package Evaluation Per Member Performance Evaluation Per Market

Correct Answer:

Per Employee Per Month

Explanation:

The concept being tested is a pricing unit used in HR and benefits services. PEPM stands for Per Employee Per Month. It means the cost is charged for each individual employee every month, giving a simple way to forecast expenses as headcount changes. For example, with 50 employees and a PEPM of $8, the monthly cost would be 50 × 8 = $400 (and $4,800 per year). This wording specifically uses “employee” rather than “member,” which is why the correct expansion is Per Employee Per Month.

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