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Payroll Fundamentals 1
Payroll Fundamentals 1
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Payroll Fundamentals 1
Flashcards
63 cards
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Questions
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Answers
1
In which situation with an employee be required to have a valid work permit
And employee has a valid 900 series social insurance number
And employee will be working outside of Canada
And employee has a 900 serious social Sherance number with no expiry date
And employee does not have a social insurance number
2
Which of the following gifts would be considered taxable federally
A camera as a birthday gift worth $200
A gift certificate for a baby shower worth $50
A vase for a wedding gift worth $50
A cell phone for Christmas gift worth $100
3
Confidentiality agreement is a legally enforceable agreement preventing present or past employee’s to disclose info
False
True
4
Erin will receive a bonus of 1500 with her regular semiMonthly salary errands EI premium is 37.26
True
False
5
If an EE in Alberta is paid for one week of vacation time, what percentage of their vacation earnings will they receive
1%
4%
6%
2%
6
Attire drove 1500 business km in MB sales territory and was reimbursed gov’t prescribed rates. 49 cents = $7650.00
False
True
7
Privacy legislation requires that employers obtain employee’s consent before collecting personal information
No consent is not needed.
Information collected must be for specific purpose
To make a spreadsheet of information
8
Legislation that requires ERs to obtain an EE consent before collecting personal information is called
Privacy legislation
Payroll compliance legislation
Employment standards legislation
None of the above
9
Calculate EI premium on legislated wages in lieu of notice of $1670, pd to EE in Quebec on a weekly basis.
92.69
27.05
20.88
Not subject to Employment Insurance premiums
10
An employer is required to keep records of the serial numbers of the ROE forms that have been completed for?
6 years
7 years
5 years
3 years
11
.Org in Quebec is paying 14500 death benefit to wife of recently passed EE. Required income tax withholding are
Federal income tax of $225.00
Federal Income tax of 225.00 plus Quebec income tax of $675.00
Quebec income tax of $675.00
Federal income tax of $725.00 plus Quebec income tax of $2175.00
12
A EE was terminated then reinstated with backpay result of court or union what type of payment is required?
Retroactive increase
Regular payment
Retroactive payment
Retroactive adjustment
13
There are two conditions to qualify for reduced automobile standby charge the vehicle is used 50% or more for business
Personal KM do not exceed 1767 per 30 day. Or 21004 per year
Personal KM do not exceed 1867 per 30 day. Or 20200 per year
Personal KM do not exceed 1667 per 30 day period for 20004 per year
Personal KM do not exceed 1600 per 30 day. Or 20005 per year
14
Most ERs are legislated information to be on a pay statement what information is not required on a pay statement
Date of pay period
Net pay
Itemize deductions
Social insurance number
15
Which code when used in box 16 also requires an explanation in box 18?
Code C
Code K
Code M
Code A
16
Employment and Social Development Canada (ESDC) is responsible for SIN issuance
True
False
17
What is one of the most important pieces of information to obtain?
Employee name and address
What position the employee is hired for
The employees SIN number
Individuals historical workplaces
18
Which of the following employees would not qualify for severance pay and Ontario
EE who on termination retires and excepts a reduced pension
Regular part time employees
EE terminated due to another EE exercising seniority right
He refuses a reasonable offer or alternate employment
19
What are four categories of employment income?
Cash, e transfer, cheque, money order
Pay, sick time, std, Ltd
Bonus, vacation, expenses, reimbursements
Earnings, Allowances, Benefits, taxable expense reimbursements
20
When would a RoE be issued?
Parental leave
Maternity leave
All of the above
Return to school
21
What piece of identification should all new employees show their employer
Passport
Drivers license
Birth certificate
SIN documentation
22
When a commission is calculated by multiplying a fixed percentage rate by the gross or net sales,this method is referred
None of the above
Multiple rates per target
Fixed amt per sale
Straight percentage of sales
23
The BC provincial health insurance premium rate per month for a family of two adults is
$25
$37.50
$50
$75
24
Employer paid premiums for GTL are an example of:
Cash allowance
Non-cash taxable benefit
Cash taxable benefit
Non-cash allowance
25
EE receives a bonus of 2500 with regular biweekly pay of 1800. Calculated CPP contributions are 212.43
False
True
26
Third party garnishment orders are regulated
By the Canada Revenue Agency
None of the above
Federally
Provincially
27
Mary Ann took clients to lunch and submitted the receipt to accounts payable with her expense claim. This is considered
Expense reimbursement
Cash allowance
Taxable expense
Taxable benefit
28
A SIN with the number 9 is issued
To newly issued series
To keep track of hires in 2018
For work permit issues
To individuals who are neither Canadian citizens nor permanent residents
29
A non-cash taxable benefit is applied one free or subsidize parking is provided
ER pays for parking incurred by EE travelling away from normal business
To an employee in the Downtowner city were parking fee is normally charged
Scramble parking
To a physically disabled employee
30
Gabby works in Sask, entitled to 5 weeks vacation. Vacations le earning are $58100.00. Calculate vacation pay
5589
10%= 5810
5/52 x 58100 = 5586.54
5890
31
If an organization reimburses their BC EEs for premiums the EEs paid to prov health plan the reimbursement would be
Expense reimbursement
Cash taxable benefit
Cash allowance
Non-cash taxable benefit
32
If Jaqueline is enrolled with ont ER life insurance coverage at .32 per 1000 for 200000.00. The cost would be 29.54
False
True
33
Employment and Social Development Canada (ESDC) still issues SIN cards
True
False
34
In which province is severance pay based on the EEs length of service and the amt of the EEs payroll?
Alberta
Ontario
Quebec
Nova Scotia
35
If EE of Alberta is paid one week vacation time what percentage vacationable earnings will they receive
1%
4%
2%
6%
36
Commission payments are subject to Nunavut payroll tax of 2% 4200.00×2% is 52. 92
True
False
37
How many pay periods will be used to calculate the total insurable hours and block 15 a on our ROE pd mthly
Last 27 pay periods or less. Of employment is shorter
Last 14 pay periods or less. Of employment a shorter
Last seven pay periods or less if period of employment is shorter
Last 13 pay periods or less of period of employment is shorter
38
Provincial healthcare taxes paid by the employee for the Ontario employees are considered
Allowances
Taxable
Income
Nontaxable
39
EE paid 12000 wages in lieu of notice added to semi mth pay 1750.00. Calculate CPP contribution, Yrly max not exceeded.
622
639.80
693.81
688.45
40
Income tax withholdings are not required when a non-employee directors annual fee is
More than the amount claimed on their federal and provincial TD1s
The same as the amount claimed on their federal and provincial TD1s
Income tax withholdings are always required
Less than the amount claimed on their federal and provincial TD1s
41
A letter of authority from CRA or RQ is required to reduce personal income tax deductions in which of the situations
And employee is over the age of 65 and can apply for a full age credit
EE supports Infirm dependant over 18 qualifies reduced tax rate
EE has excess tax fed working for ER in different territory
EE supports agent parent over 65 qualifies caregiver credit
42
A commencement package could include (where applicable)
A union membership card
A confidentiality agreement
Benefits enrolment forms
All of the above
43
ER’s must ensure that all terms and conditions of a work permit are followed?
True
False
44
What must the payroll Dept know?
Know what a valid SIN is
What time Emploee’s take lunch
All emploee’s personal info.
Who has responsibility and authority to hire and sign
45
Total EE’s earnings taxable allowances cash taxable benefits and non cash taxable benefits is referred to
Net taxable income
Gross pensionable taxable income
Gross earnings
Gross insurable earnings
46
Calculate net pay, $1400 bi-wk, taxable car allowance 70, NCTB 25,union dues 18 TD1 #1
1002.36
1072.36
1020.36
1097.36
47
Which type of retirement plan would result in a taxable benefit for the employee if the employer made the contribution?
Registered Retirement Savings Plan
Defined contribution pension plan
Money purchase pension plan
Defined benefit pension plan
48
To receive reduction in income taxes outside of Quebec ERs must apply to revenue Canada for a reduction using form
TP – 1015.3-V
T2201
TD1
T1213
49
Paid sick leave is legislated in which jurisdiction
None of the above
Ontario
Nova Scotia
New Brunswick
50
Which is not a type of regular earning?
Life insurance premiums
Self insured disability payments
Vacation pay
Hourly wages
51
Approximately 70% of employers use third parties for
Informal sick plan coverage
Short term disability coverage
Long-term disability coverage
Formal sick plan coverage
52
Which fees paid by the ER to a third-party outside of the EE assistance plan results and non cash taxable benefit
Job placement counselling
Legal counselling
Stress management counselling
Retirement counselling
53
Car allowances can be provided as
Credit card for gas purchases
Fixed amount per business kilometre driven
Flat amount
All of the above
54
Legal deductions may include
Family Support and Maintenance Order
Requirement to pay
Third party demand
All of the above
55
If the garnishment percentage is not clearly stated in the Third Party Demand document, the ER must:
Contact CRA and/or RQ immediately for a written response
Withhold 30% of EEs net earnings
Withhold 25% of the EEs gross wage until advised otherwise
With old 30% of EEs gross earnings
56
Calculate the QPIP premium on a retiring allowance of 12 000 paid to an EE in Leval Quebec
63. 12
150.00
Not subject to QPIP premiums
194. 40
57
Error on Ivan’s Pay. OT of 143 is to be paid on separate check from regular. Calculate CPP on OT
7.94
3.86
0.43
7.29
58
Calculate CPP contribution on a directors fee of $15000.00 paid quarterly.
493.45
720.38
586.50
798.34
59
Which of the following ER-funded pension plans traditionally use a flat dollar contribution or a percentage of pension p
Registered Retirement Savings Plan
Defined benefit pension plan
Defined contribution pension plan
All of the above
60
The deduction for living in a prescribe zone can be claimed by residence and what jurisdictions
Alberta Saskatchewan and Manitoba
North west territories, Nunavut and Yukon
I’ll Canadian provinces and territories
61
Business driving refers to any driving by an EE for business purpose not including
Travelling directly from home to point of call
Driving to existing and prospective clients
When the EE travels home from point of call
Travel between home and work
62
Which type of retirement plan has a specified employee contribution and/or specified employer contribution
Defined contribution pension plan
None of the above
Group registered retirement savings plan
Defined benefit pension plan
63
Henry has the company-owned automobile available to him for 145 days in the year. What is the available period?
8
15
5
21