TEST BANK For An Introduction to Payroll Administration, 6th Canadian Edition, 6e Alan Dryden. NOTE: by StudyGuide

TEST BANK For An Introduction to Payroll Administration, 6th Canadian Edition, 6e Alan Dryden. NOTE: Answers At The End Of Each Chapter Chapter 1: 1) Failing to deduct statutory withholdings from employee payments can result in fines,

penalties and interest charges. ⊚ true ⊚ false

2) Employers who do not deduct statutory withholdings from employee payments have nothing

to worry about. ⊚ true ⊚ false

3) Employers who fail to deduct proper withholdings from employee payments may be forced

to take on the cost of these missed deductions. ⊚ true ⊚ false

4) Payments for employees are processed through accounts payable and do not require any

statutory payroll deductions. ⊚ true ⊚ false

5) Payments for self-employed workers are typically processed through accounts payable and

do not require any statutory payroll deductions. ⊚ true ⊚ false

6) Employees with a Social Insurance Number beginning with a '9' are free to work in Canada

without restrictions. ⊚ true ⊚ false

7) Most payroll software is capable of checking the validity of Social Insurance Numbers. ⊚ true ⊚ false

8) Employers are permitted to use a Social Insurance Number as an employee ID for an internal

social club. ⊚ true ⊚ false

9) The province of employment determines if you are regulated by the Canada Labour Code. ⊚ true ⊚ false

10) Walmart Canada is federally regulated as they have stores in multiple provinces. ⊚ true ⊚ false

11) An employer's Human Resource department would be considered an external stakeholder. ⊚ true ⊚ false

12) An employer's Accounting department would be considered an external stakeholder. ⊚ true ⊚ false

13) If the worker has the option to sub-contract their work to others for profit, the worker is

likely: A) An employee B) Self-employed

14) If the worker is supervised while on the job and required to follow a schedule of hours

determined by the supervisor, the worker is likely: A) An employee B) Self-employed

15) If the worker is provided with all of the tools required to do the job and are not responsible

for maintenance and insurance of these tools, the worker is likely: A) An employee B) Self-employed

16) If the worker finishes the job quickly and is able to earn additional profit as a result, the

worker is likely: A) An employee B) Self-employed

17) If a worker is hired to fix one toilet in a large office building and is required to bring their

own tools, can dictate the time the job is done and has the ability to hire an assistant to do the work for them, the worker is likely: A) An employee B) Self-employed

18) If a worker is hired by a plumbing company to repair toilets in large office buildings and is

required to work a scheduled shift, use company tools and do the work themself, the worker is likely: A) An employee B) Self-employed

19) Employers must request the Social Insurance Number within ___ number of days of an

employee starting employment. A) 1 B) 2 C) 3 D) 4 E) 5

20) How many digits are in a valid Social Insurance Number? A) 6 B) 7 C) 8 D) 9 E) 10

21) If an employer is unsure which Provincial Employment or Labour Standards apply they

should: A) B) C) D) E)

Use the home province of the employee Use the home address of the CEO Contact the Canada Revenue Agency Contact the Ministry of Labour Refer to the CRA publication RC4110

22) If in doubt of whether or not the worker is an employee or self-employed, the safest choice is

to: A) B) C) D) E)

Pay as a lump sum with no deductions Treat relationship as employment and withhold deductions Pay through Accounts Payable with no deductions Ask the worker to determine which scenario they would prefer Flip a coin and document the results

23) To determine whether a worker is an employee or is self-employed the CRA looks at: A) The formal agreement between the parties B) The substance of the relationship between the parties C) The familial relationship between the parties D) The duration of the friendship between the parties E) The payment amount agreed to between the parties

24) Who carries the responsibility to apply for an individual's Social Insurance Number? A) The employer B) CRA C) The individual D) The parents of the individual E) The payroll administrator

25) Employees in this industry are not considered to be federally regulated. A) Banks B) Radio Broadcasting C) Uranium Mining D) Automotive E) Air Transportation

26) Employees in this industry are not considered to be federally regulated. A) Interprovincial shipping B) Retail Stores C) Telephone Services D) Grain Elevators E) Federal Crown Corporations

27) If a temporary Social Insurance Number expires. A) It automatically is renewed B) The employer must contact Service Canada C) The employee is temporarily laid-off D) The employee must contact Service Canada E) The employee's employment is terminated

28) List 3 reasons why the efficient and effective administration of the process is very important

to managers.

29) Name and describe the 3 steps involved to determine if a worker is an employee or an

independent contractor in Quebec.

30) Name 3 stakeholders in the payroll administrative process and explain their interest in the

outcomes.

Answer Key Test name: ch 1 1) TRUE 2) FALSE 3) TRUE 4) FALSE 5) TRUE 6) FALSE 7) TRUE 8) FALSE 9) FALSE 10) FALSE 11) FALSE 12) FALSE 13) B 14) A 15) A 16) B 17) B 18) A 19) C 20) D 21) E 22) B 23) B 24) C 25) D 26) B 27) E 28) Short Answer 29) Short Answer 30) Short Answer

Chapter 2:__________ 1) An employer can offer compensation and benefits better than those outlined in employment

standards legislation. ⊚ true ⊚ false

2) An Ontario employee may face disciplinary action for refusing to work more than 8 hours in

one day, if the employer does not have a written agreement or approval from the Ministry of Labour. ⊚ true ⊚ false

3) Qualifying federal employees must receive a day off work and be paid at their regular rate for

Family Day under the Canada Labour Code and Holidays Act. ⊚ true ⊚ false

4) Ontario employees may be unpaid during their vacation from work if they receive 4% of

their gross earnings in lieu of vacation each pay (or 6% with 5+ years of service). ⊚ true ⊚ false

5) An employee who permanently terminates employment during the year is owed accrued

vacation for time earned but not taken during the year. ⊚ true ⊚ false

6) British Columbia senior executive employees may be paid on a monthly basis. ⊚ true ⊚ false

7) Ontario senior executive employees may be paid on a monthly basis. ⊚ true ⊚ false

8) Quebec senior executive employees may be paid on a monthly basis. ⊚ true ⊚ false

9) Ontario employees are entitled to one day off with pay to get married. ⊚ true ⊚ false

10) Quebec employees are entitled to one day off with pay to get married. ⊚ true ⊚ false

11) A Quebec employer can offer an entry level wage of $12 per hour to new adult employees

who do not serve liquor. ⊚ true ⊚ false

12) An Ontario employer can offer an entry level wage of $12.45 per hour to new adult

employees who do not serve liquor. ⊚ true ⊚ false

13) A British Columbia employer can choose to pay overtime after 35 hours per week and 7

hours per day. ⊚ true ⊚ false

14) Payroll professionals are responsible for staying up to date with changes in legislation

affecting their organization. ⊚ true ⊚ false

15) A Statement of Earnings is not required to be provided by an employer. ⊚ true ⊚ false

16) Employers must pay employees their regular earnings while off work for most Leaves of

Absences. ⊚ true ⊚ false

17) Employer policies cannot override union contracts and employment standards laws. ⊚ true ⊚ false

18) What is the minimum wage per hour that can be paid to an adult employee serving liquor

directly to customers as part of their regular work in an Ontario business? A) $14.00 B) $13.15 C) $12.45 D) $15.40 E) $15.00

19) What is the minimum wage per hour that can be paid to an employee doing paid work in their

own home in an Ontario business? A) $14.00 B) $13.15 C) $12.20 D) $15.70 E) $16.50

20) What is the minimum wage per hour that can be paid to an adult employee NOT serving

liquor directly to customers as part of their regular work in a British Columbia business in February of 2022? A) $13.85 B) $13.15 C) $14.60 D) $15.20 E) $15.00

21) An Ontario employee working a 4 hour shift is entitled to an unpaid break of the following

duration: A) 45 minutes B) 30 minutes C) 20 minutes D) 15 minutes E) 0 minutes (no break is required)

22) British Columbia employees must receive __________ as vacation after 5 years of service. A) 6% of gross pay B) 2 weeks C) 8% of gross pay D) 4% of gross pay E) 4 weeks

23) These are Statutory payroll deductions, required by law. A) Pension, Union Dues, and Taxes B) Family Support, Employment Insurance and Taxes C) Canada Pension, Employment Insurance and Taxes D) Canada Pension, Union Dues and Group Insurance Premiums E) Union Dues, Employment Insurance and Taxes

24) Which statutory holiday is only observed in Quebec? A) Christmas Day B) New Year's Day C) Remembrance Day D) Thanksgiving Day E) National Holiday

25) Ontario provides for up to____ weeks of unpaid protected leave of absence for a crime-

related death or disappearance of a child. A) 8 B) 37 C) 52 D) 104 E) 28

26) Explain the rules regarding overtime pay under the Canada Labour Code and briefly describe

the 3 general exceptions to this rule.

27) A Quebec employee who has completed 90 days of employment is asked to work on Canada

Day in a manufacturing plant. Their normal rate of pay is $20 per hour. How much would this employee receive for each hour worked on Canada Day? Explain your answer and the calculation.

28) What are the minimum contents of a statement of earnings under federal legislation?

29) Explain the differences between Federal and Ontario legislation regarding

Pregnancy/Maternity Leave.

30) Do employment standard minimums restrict the ability of employers to offer competitive

wages and benefits? Explain.

31) What happens if a Collective Bargaining Agreement is in place that outlines different terms

and conditions than the relevant employment standard minimums?

Answer Key Test name: ch 2 1) TRUE 2) FALSE 3) FALSE 4) TRUE 5) TRUE 6) FALSE 7) TRUE 8) TRUE 9) FALSE 10) TRUE 11) FALSE 12) FALSE 13) TRUE 14) TRUE 15) FALSE 16) FALSE 17) TRUE 18) E 19) E 20) D 21) E 22) A 23) C 24) E 25) D 26) Short Answer 27) Short Answer 28) Short Answer 29) Short Answer 30) Short Answer 31) Short Answer

Chapter 3:__________ 1) The pay cycle is determined by the Canada Revenue Agency and cannot be altered by the

employer. ⊚ true ⊚ false

2) The employment contract may express payment in any method imagined (for example: per

hour, per year, per unit, per dollar sold, per telephone call, per page written, etc.). ⊚ true ⊚ false

3) Non-exempt employees in Ontario who earn a salary can be asked to work more than 44

hours in a week without being entitled to overtime pay. ⊚ true ⊚ false

4) To qualify as a taxable benefit the employee must receive something that is of a personal

benefit to them. ⊚ true ⊚ false

5) Mary has a job as waitress at a small restaurant. Tips are pooled in a jar and distributed back

to employees at the end of each shift by the manager. These tips are not considered taxable income because they are funded by the patrons rather than the owner of the business. ⊚ true ⊚ false

6) Samira works at Taco Bell and receives a free meal at the end of each shift. This meal must

be included in her pay calculation as a taxable benefit. ⊚ true ⊚ false

7) Amblake Co. offers a $600 prize to employees who have completed a voluntary survey to

help them gather information about employee engagement. This bonus does not have to be taxed. ⊚ true ⊚ false

8) Allowances are generally considered to be taxable earnings. ⊚ true ⊚ false

9) Taxable benefits are paid to employees with their other earnings. ⊚ true ⊚ false

10) If an employee earns a salary of $58,500 per year, their weekly pay cycle salary would be: A) $4,875.00 B) $2,437.50 C) $2,250.00 D) $1,125.00 E) $562.50

11) If an employee earns a salary of $58,500 per year, their semi-monthly pay cycle salary would

be: A) B) C) D) E)

$4,875.00 $2,437.50 $2,250.00 $1,125.00 $562.50

12) If Mary earns $260,000 per year how much does she earn per week? A) $10,000 B) $5,000 C) $260,000 D) $2,500 E) $6,000

13) If Mira earns $55 per hour and works 15 hours, what is her gross pay for the period? A) $825 B) $750 C) $55 D) $15 E) $1,235.70

14) An example of a taxable benefit would be: A) Tuition paid for a WordPress course required for work. B) Use of a company car while working. C) An ergonomic chair provided for the employee to use at the office. D) An employer paid gym membership. E) Airline tickets to travel to an office event.

15) Reimbursement of costs covered by employees on behalf of the employer such as travel

expenses and meal allowances: A) Are reported as part of gross wages. B) Increase the employee's taxable income. C) Typically, are paid through Accounts Payable and do not impact deductions. D) Must be reported on a T4 to the Canada Revenue Agency. E) Must be below $300 per person per calendar year.

16) The following is not an example of a taxable allowance: A) Cash paid to an employee to purchase normal clothing to wear on the job. B) Cash paid to cover living expenses. C) Cash paid to cover the cost of a personal vehicle which may be used for company

business. D) Cash paid to cover business travel expenses such as hotels, airfare, taxis, meals, etc. E) Cash paid to cover entertainment costs not for the benefit of the company.

17) Cell phone service paid for by the employer for the employee's personal use is: A) Not taxable B) Taxable with CPP and EI deductions C) Taxable with CPP deductions but not EI D) Taxable with EI deductions but not CPP E) Not taxable but subject to CPP deductions

18) Use of a company gym on site (recreational facility) is: A) Not taxable B) Taxable with CPP and EI deductions C) Taxable with CPP deductions but not EI D) Taxable with EI deductions but not CPP E) Not taxable but subject to CPP deductions

19) Payments for guests travelling with an employee, in cash are: A) Not taxable B) Taxable with CPP and EI deductions C) Taxable with CPP deductions but not EI D) Taxable with EI deductions but not CPP E) Not taxable but subject to CPP deductions

20) Cash reimbursement for money spent to pay for office supplies such as postage stamps are: A) Not taxable B) Taxable with CPP and EI deductions C) Taxable with CPP deductions but not EI D) Taxable with EI deductions but not CPP E) Not taxable but subject to CPP deductions

21) This information is not required in order to calculate the automobile taxable benefit for

employees who are permitted to use company owned cars for personal use: A) The total number of kilometres driven. B) The total amount of business kilometres driven. C) The purchase price of the automobile. D) The cost of gas for personal driving. E) The amount of money reimbursed to the employer by the employee for personal use.

22) The CEO of Amblake Co. would like to offer free parking to all employees in a prime

downtown space. What impact will this have on their pay? A) No impact. B) Will increase their rate of pay per hour. C) Will reduce their net income by the full value of the parking space. D) Will result in lower statutory deductions. E) Will result in higher statutory deductions.

23) Employee wages can include: A) Shift Premiums. B) Call-in pay. C) Overtime. D) Vacation Pay. E) All of these above.

24) An example of a non-taxable benefit is: A) Use of an employer's car for personal use. B) Tuition paid for job related training. C) Interest free loans. D) Free lunches every day in the company cafeteria. E) Home internet not required for work purposes.

25) The CRA considers the following types of earnings to be employment income: A) Commissions. B) Gifts and awards C) Bonuses. D) Severance pay. E) All of these above.

26) Fred Vedaro is paid bi-weekly and earns $15 per hour with overtime paid after 44 hours in

one week. Fred works 48 hours in the first week and 39 in the second. Vacation pay at 4% will be paid on each pay cycle. Calculate Fred's gross wages for this two-week period.

27) Martha Jovia is paid weekly and earns $25 per hour with overtime paid after 44 hours in one

week or 8 hours in one day. Martha worked 4 hours on Sunday, 8 hours on Monday, 10 on Tuesday, 7 on Wednesday and nothing for the remainder of the week. Vacation pay at 6% will be paid on each pay cycle. She also earns a shift premium of 5% for each hour worked on a weekend. Calculate Martha's gross wages for this one-week period.

28) List 3 examples of taxable benefits.

29) What information is required to utilize the Canada Revenue Agency online calculator of the

automobile taxable benefit?

30) Frank Hill works for a company with a semi-monthly pay cycle. He earns $80,000 per year

and receives over-time paid at time and a half for any approved hours worked in excess of 40 hours per week. He receives a parking allowance of $100 per month and is paid $25 per hour for working on-call on weekends. During this pay cycle Frank worked 9 hours of approved over-time this pay cycle and was on-call for 10 hours on Saturday. Calculate Frank's gross earnings for this pay cycle.

31) Sophie Gowna works for a company with a bi-weekly pay cycle. She earns $30 per hour and

receives over-time paid at time and a half for any hours worked over 37.5 in one week. Sophie receives a cash company car allowance of $300 per month and is paid 8% vacation pay on hours worked. She also is receiving a $973.45 cash reimbursement of travel expenses incurred for the company last month. During this pay cycle Sophie worked 40 hours in the first week and 35 hours in the second. Calculate Sophie's gross earnings for this pay cycle.

Answer Key Test name: ch 3 1) FALSE 2) TRUE 3) FALSE 4) TRUE 5) FALSE 6) TRUE 7) FALSE 8) TRUE 9) FALSE 10) D 11) B 12) B 13) A 14) D 15) C 16) D 17) C 18) C 19) B 20) A 21) D 22) E 23) E 24) B 25) E 26) Short Answer 27) Short Answer 28) Short Answer 29) Short Answer 30) Short Answer 31) Short Answer

Chapter 4

1) The Canada Revenue Agency acts as the agent to collect Canada Pension, Employment

Insurance and Income Tax contributions for all provinces and territories. ⊚ true ⊚ false

2) Canada Pension Plan contributions must be deducted from severance pay. ⊚ true ⊚ false

3) Pensionable earnings include the value of gifts and awards, including trips. ⊚ true ⊚ false

4) Pensionable earnings include allowances paid to purchase safety shoes required on the job

for health and safety. ⊚ true ⊚ false

5) The Canada Pension Plan is an insurance program to partially replace income lost due to

retirement or permanent disability. ⊚ true ⊚ false

6) Employment Insurance is an insurance program to partially replace income lost due to

retirement or permanent disability. ⊚ true ⊚ false

7) The amount of Canada Pension contribution to be deducted is partially based on pay cycle

frequency. ⊚ true ⊚ false

8) Employment Insurance premium to be deducted is partially based on pay cycle frequency. ⊚ true ⊚ false

9) An employee can use the TD1 claim form to increase or reduce payroll tax deductions based

on their individual tax exemption entitlement. ⊚ true ⊚ false

10) What is the amount of the exemption for Canada Pension Plan applied to a semi-monthly pay

cycle? A) B) C) D) E)

$67.30 $66.03 $134.61 $145.83 $3500.00

11) What is the amount of the exemption for Canada Pension Plan applied to a weekly pay cycle? A) $67.30 B) $66.03 C) $134.61 D) $145.83 E) $3500.00

12) What is the amount of the exemption for Employment Insurance applied to a semi-monthly

pay cycle? A) $67.30 B) $66.03 C) $134.61 D) $145.83 E) $0.00

13) Freida Too is 52 years old and earns $14.00 per hour. This pay schedule she worked 9 hours.

She is paid bi-weekly in the Province of Manitoba. How much is her CPP deduction? A) $126.00 B) $6.01 C) $2.68 D) $0.65 E) $0.00

14) Susan Stark is 17 years old, earns $18 per hour, worked 30 hours in the pay cycle and is paid

weekly in the Province of Ontario. How much is her CPP deduction? A) $540.00 B) $26.73 C) $23.40 D) $24.82 E) $0.00

15) Shannon Fiord is 27 years old, earns $18 per hour, worked 30 hours in the pay cycle and is

paid weekly in the Province of Ontario. How much is her CPP deduction? A) $540.00 B) $26.73 C) $24.11 D) $26.94 E) $0.00

16) Shannon Fiord is 27 years old, earns $18 per hour, worked 30 hours in the pay cycle and is

paid weekly in the Province of Ontario. How much must the employer contribute for CPP on her behalf? A) $540.00 B) $46.80 C) $26.94 D) $26.73 E) $0.00

17) Freida Too is 52 years old and earns $16.00 per hour. This pay schedule she worked 9 hours.

She is paid weekly in the Province of Manitoba. How much is her EI deduction? A) $144.00 B) $2.28 C) $3.20 D) $1.02 E) $0.00

18) Freida Too is 52 years old and earns $16.00 per hour. This pay schedule she worked 9 hours.

She is paid weekly in the Province of Manitoba. How much must the employer contribute for EI on her behalf? A) $144.00 B) $2.27 C) $3.19 D) $1.02 E) $0.00

19) John Legglet is 42 years old, earns $4000 per week and is paid semi-monthly in the Province

of Ontario. How much is his CPP deduction? A) $485.69 B) $396.00 C) $392.67 D) $194.67 E) $198.00

20) If the Canada Pension Plan deduction for an employee is $57.45 for the pay cycle, how much

must the employer pay for the same period? A) $0.00 B) $28.73 C) $57.45 D) $80.43 E) $114.90

21) If the Employment Insurance deduction for an employee is $57.45 for the pay cycle, how

much must the employer pay for the same period? A) $0.00 B) $28.73 C) $57.45 D) $80.43 E) $114.90

22) Sally Shy is 72 years old and currently collecting Canada Pension Plan benefits. She works

part time and earns $15.00 per hour. This pay schedule she worked 19 hours. She is paid biweekly in the Province of Alberta. How much is her EI deduction? A) $285.00 B) $12.70 C) $6.75 D) $4.50 E) $0.00

23) Sally Shy is 72 years old and currently collecting Canada Pension Plan benefits. She works

part time and earns $ 15.00 per hour. This pay schedule she worked 19 hours. She is paid biweekly in the Province of Alberta. How much is her CPP deduction? A) $256.50 B) $12.70 C) $9.37 D) $6.03 E) $0.00

24) Freida Too is 52 years old and earns $15.00 per hour. This pay schedule she worked 19

hours. She is paid bi-weekly in the Province of Manitoba. How much is her CPP deduction? A) $256.50 B) $12.70 C) $9.37 D) $8.57 E) $0.00

25) The employee claim code is determined by: A) Lottery B) The total dollar value of claimed exemptions on the TD1 C) Employee choice D) The basic personal amount on the TD1 E) Job tenure

26) The following is not an accepted method to calculate the amount of taxes to be with-held. A) Manual Calculations B) Use of pre-printed tables from CRA C) Telephone help service provided by CRA D) Online tax deduction calculator provided by CRA E) Use of tax formula tables incorporated into computer software

27) If the TD1 form is not available, the employer should assume: A) The employee wants extra taxes taken off B) No tax deductions are required C) The maximum claim code is applied D) Only the basic personal tax exemption is being claimed E) The employee is terminated

28) Explain the purpose of the Canada Pension Plan.

29) Name the three things a payroll administrator needs to know in order to determine the

Canada Pension Plan deduction amount for each employee.

30) Your employee is 27 years old and earned $257.65 of pensionable earnings this pay cycle.

They are paid weekly in the Province of British Columbia. Calculate their CPP deduction.

31) Your employee is 27 years old and earned $257.65 of pensionable earnings this pay cycle.

They are paid monthly in the Province of British Columbia. Calculate their CPP deduction

32) Your employee is 71 years old and earned $395.52 of pensionable earnings this pay cycle.

They are paid weekly in the Province of British Columbia. Calculate their CPP deduction.

33) Your employee is 16 years old and earned $450.15 of pensionable earnings this pay cycle.

They are paid bi-weekly in the Province of Ontario. Calculate their CPP deduction.

34) Your employee is 27 years old and earned $257.65 of insurable earnings this pay cycle. They

are paid weekly in the Province of British Columbia. Calculate their EI deduction.

35) Your employee is 27 years old and earned $982.15 of pensionable earnings this pay cycle.

They are paid monthly in the Province of British Columbia. Calculate their EI deduction.

36) Your employee is 71 years old and earned $395.52 of pensionable earnings this pay cycle.

They are paid weekly in the Province of British Columbia. Calculate their EI deduction.

37) Your employee is 16 years old and earned $450.15 of pensionable earnings this pay cycle.

They are paid bi-weekly in the Province of Ontario. Calculate their EI deduction.

38) List the information you need to know in order to calculate the Income Tax deduction for an

employee.

Answer Key Test name: ch 4 1) FALSE 2) FALSE 3) TRUE 4) FALSE 5) TRUE 6) FALSE 7) TRUE 8) FALSE 9) TRUE 10) D 11) A 12) E 13) E 14) E 15) D 16) C 17) B 18) C 19) A 20) C 21) D 22) D 23) E 24) D 25) B 26) C 27) D 28) Short Answer 29) Short Answer 30) Short Answer 31) Short Answer 32) Short Answer 33) Short Answer 34) Short Answer 35) Short Answer 36) Short Answer 37) Short Answer

38) Short Answer

Chapter 5:__________ 1) Employees do not need to be notified when court order with-holdings are requested since

they should be aware of the situation already. ⊚ true ⊚ false

2) Employers should maintain documentation showing that employees have accepted any

required non-statutory deductions. ⊚ true ⊚ false

3) Finding out that an employee has an outstanding court order related to unpaid debts can be

upsetting to the employer and is grounds for termination of employment. ⊚ true ⊚ false

4) If a sales clerk is short on their till at the end of the night, the employer can deduct the

amount of the shortage off their next pay. ⊚ true ⊚ false

5) If a gas attendant is on duty at the time when a customer leaves without paying, the employer

can deduct the amount of the lost payment off their next pay. ⊚ true ⊚ false

6) If group insurance premiums are partially paid by the employee and the employee has

acknowledged this deduction in writing, the employer can deduct the cost directly from each pay. ⊚ true ⊚ false

7) Defined contribution benefit plans are valued by employees because the payment at the

retirement is known in advance. ⊚ true ⊚ false

8) Employees bear the risk of market fluctuation when they have defined benefit pension plans. ⊚ true ⊚ false

9) Employees bear the risk of market fluctuation when they have defined contribution pension

plans. ⊚ true ⊚ false

10) Employer optional deductions such as social club memberships should be deducted first,

before statutory deductions are made in case the employee runs out of money to cover off the extras. ⊚ true ⊚ false

11) Until the money is due, deductions taken off employee payments can be used to cover

operating expenses for the business. ⊚ true ⊚ false

12) If an employee damages employer property, the cost can be deducted from the employee's

wages without agreement of the employee. ⊚ true ⊚ false

13) All employers require payroll deductions for company pension plan participation. ⊚ true ⊚ false

14) Employers may not allow employees to contribute to charities through payroll deductions. ⊚ true ⊚ false

15) Employers should have documentation that employees have agreed to all employer

compulsory and voluntary deductions. ⊚ true ⊚ false

16) If gross earnings less statutory deductions for an employee in Ontario with a family support

Garnishment Order equal $1500, what is the maximum amount that can be deducted for the Order? A) $1500 B) $1250 C) $750 D) $300 E) $0

17) If gross earnings less statutory deductions for an employee in Ontario with a non-family

support Garnishment Order equal $1500, what is the maximum amount that can be deducted for the Order? A) $1500 B) $1250 C) $750 D) $300 E) $0

18) What is the maximum amount, by percentage, that a family support order may direct the

employer to with-hold? A) 10% B) 20% C) 30% D) 40% E) 50%

19) An employee with an outstanding family support Garnishment Order asks you to allow them

to make their RRSP contributions before the available garnishment amount is calculated. You must: A) Agree and do as asked as it is their pay B) Calculate the amount after all statutory deductions are applied C) Calculate the amount after all deductions are applied including voluntary D) Terminate the employee immediately for trying to skip out on their family responsibilities E) Contact their supervisor immediately and inform them about the terms of the Garnishment Order

20) The following is not an example of a statutory deduction. A) Federal Taxes B) Provincial Taxes C) Canada Pension Plan Contributions D) Employment Insurance Premiums E) Union Dues

21) If an employee disagrees with the terms outlined in a Garnishment Order the payroll

administrator should: A) Cease all deductions until the issue is resolved B) Contact the court to discuss the employee objection C) Continue to follow the terms of the order until advise by the court otherwise D) Deduct additional amounts in case the employee decides to quit over the disagreement E) Follow directions provided by the employee regarding how they would like the matter handled

22) A Garnishment Order may not be issued by: A) Canada Revenue Agency B) A Credit Union (where the member has signed an Assignment of Wages) C) Creditors (where the member has signed an Assignment of Wages) D) The Federal Court of Canada E) Small Claims Court

23) The following statement is not true regarding employer sponsored Registered Retirement

Savings Plans. A) The final retirement benefit is known in advance. B) Allow employers to reduce taxes from source deductions. C) Fees are usually lower than for individuals. D) Contributions may be made by the employer, the employee or both depending on the structure of the plan. E) Employee access is often limited to the principal or interest income prior to retirement.

24) An employee has a family support order demanding $500 per weekly pay be with-held. If the

employee has a gross taxable income of $1000, can the full amount be deducted on this pay? A) Yes B) No C) Maybe, if the employee does not have any voluntary deductions D) Maybe, if the employee has many tax credits E) There isn't enough information to say for sure

25) A deduction from an employee's wages must be made for all received documents except: A) A Garnishment Order from a court. B) A Direction to Pay from the Canada Revenue Agency. C) An Assignment of Wages from a "Pay Day" loan company. D) An order from a Family Court Branch E) An order from a Small Claims Court.

26) Name the 3 Statutory Deductions in Canada.

27) What steps are recommended when a Garnishment Order is received by the employer?

28) What should be acknowledged in the employee written permission for employer optional

deductions?

29) List 3 examples of employer optional deductions that may be authorized by the employer for

the employee's benefit.

30) List the order of priority of deductions for an employee.

Answer Key Test name: ch 5 1) FALSE 2) TRUE 3) FALSE 4) FALSE 5) FALSE 6) TRUE 7) FALSE 8) FALSE 9) TRUE 10) FALSE 11) FALSE 12) FALSE 13) FALSE 14) TRUE 15) TRUE 16) C 17) D 18) E 19) B 20) E 21) C 22) C 23) A 24) B 25) C 26) Short Answer 27) Short Answer 28) Short Answer 29) Short Answer 30) Short Answer

Chapter 6:__________ 1) If employees receive benefits that are not paid in cash, such as free cell phones, these items

will not be considered taxable. ⊚ true ⊚ false

2) Pensionable Earnings may be different from Insurable Earnings. ⊚ true ⊚ false

3) Employees in provinces other than Quebec must contribute additional premiums on insurable

earnings over and above the Employment Insurance rate of 1.58% for their provincial Parental Insurance Plans. ⊚ true ⊚ false

4) The rate of 1.58% for Employment Insurance Premiums will never change. ⊚ true ⊚ false

5) Current information should always be used for payroll calculations and the latest rates can be

found on government websites. ⊚ true ⊚ false

6) Taxable benefits amounts need to be calculated based on the value per pay cycle. ⊚ true ⊚ false

7) Gross earnings comprise of only taxable earnings. ⊚ true ⊚ false

8) Pensionable earnings are always the same as gross earnings. ⊚ true ⊚ false

9) Insurable earnings may be different than gross earnings. ⊚ true ⊚ false

10) Gross taxable earnings may be different than gross earnings. ⊚ true ⊚ false

11) If an employer pays $200 per month for employee life insurance premiums, what amount

must be added to gross earnings on a weekly pay period before calculating deductions? A) $2,400 B) $200 C) $100 D) $50 E) $46.15

12) Employees in Quebec contribute to the Quebec Pension Plan at a rate of ____. A) 6.15% B) 4.95% C) 0.559% D) 1.54% E) 1.88%

13) Employees in Quebec contribute Employment Insurance premiums at a rate of ____. A) 5.25% B) 4.95% C) 0.559% D) 1.20% E) 1.88%

14) Employees in Quebec must also contribute an additional premium of ____ on insurable

earnings to the Quebec Parental Insurance Plan. A) 5.25% B) 4.95% C) 0.494% D) 1.54% E) 1.88%

15) The value of taxable benefits provided to employees must be added to income ______ in

advance of calculating deductions. A) annually B) monthly C) at tax filing D) each pay cycle E) each day

16) Gross Earnings includes all but the following: A) Shift Premium B) Non-taxable allowances C) Employer Health Tax Premiums D) Taxable Allowances E) Payment in lieu of notice

17) Why do we need the employee's date of birth in order to calculate pay? A) To determine if Employment Insurance deductions are required B) To determine if Canada Pension plan deductions are required C) To determine if provincial tax deductions are required D) To determine if federal tax deductions are required E) To determine birthday deductions are required

18) All but the following are deductions allowed in the calculation of Net Taxable Earnings. A) Contributions to a Registered Pension Plan B) Amounts claimed on a TD1 for living in a prescribed zone C) Union dues deducted from this pay cycle D) Contributions to a Registered Retirement Savings Plan E) Contributions to a Registered Charity

19) List the 13 steps in the Pay Cycle Process.

20) Explain the difference between Gross Taxable Earnings and Net Taxable Earnings.

21) When would Pensionable Earnings and Insurable Earnings be different? Provide an example.

22) An employee earns $55,000 per year and is paid on a semi-monthly pay schedule. The

employee enjoys the benefit of a company paid cell phone for personal use (cost is $150 per month) and receives 6% vacation pay on each payment. This pay cycle included 15 hours of approved overtime worked over the normal 40 hour work week and a reimbursement for travel expenses in the amount of $434.20. The employee contributes 5% of their regular wages to a Registered Retirement Savings Plan each pay cycle.

22.1)

Calculate the Gross Earnings.

22.2)

Calculate the Pensionable Earnings.

22.3)

Calculate the Insurable Earnings.

22.4)

The employee is 32 years old and has contributed $1,212.15 to Canada Pension Plan so far this year. Calculate the Canada Pension Plan Contribution.

22.5)

The employee is 32 years old and has contributed $460.37 to Employment Insurance so far this year. Calculate the Employment Insurance Premium.

22.6)

Calculate the Gross Taxable Earnings.

22.7)

Calculate the Net Taxable Earnings. Explain what deductions are allowed.

22.8)

The employee is a Claim Code 1 both Federally and Provincially and works in Ontario. Use the PDOC to calculate Provincial and Federal tax deductions assuming the date of pay is March 7, 2022.

22.9)

Calculate the net pay for this employee. Be sure to list all of the deductions from the employee's pay for this pay cycle. Based on 2022 rates and T4032 tables.

Answer Key Test name: ch 6 1) FALSE 2) TRUE 3) FALSE 4) FALSE 5) TRUE 6) TRUE 7) FALSE 8) FALSE 9) TRUE 10) TRUE 11) E 12) A 13) D 14) C 15) D 16) C 17) B 18) E 19) Short Answer 20) Short Answer 21) Short Answer 22) Section Break 22.1) Short Answer 22.2) Short Answer 22.3) Short Answer 22.4) Short Answer 22.5) Short Answer 22.6) Short Answer 22.7) Short Answer 22.8) Short Answer 22.9) Short Answer

Chapter 7:__________ 1) The cost of payroll is simply the total wages paid to employees. ⊚ true ⊚ false

2) In addition to with-holding and remitting statutory deductions to the Canada Revenue

Agency, employers must also contribute to Workers' Compensation programs. ⊚ true ⊚ false

3) In addition to registering with the federal government, a business must register in each

province or territory where they have an operation. ⊚ true ⊚ false

4) If an employee works for more than one employer in the year and pays more than the annual

maximum for CPP as a result, they will receive a refund on their annual tax return. ⊚ true ⊚ false

5) If an employee works for more than one employer in the year and pays more than the annual

maximum for CPP as a result, the employer will receive a refund on their annual tax return. ⊚ true ⊚ false

6) If an employer forgets to deduct Canada Pension Plan contributions from employee

payments, the employee will be forced to make up the difference when they file their annual personal tax return. ⊚ true ⊚ false

7) Every province administers their own pension fund. ⊚ true ⊚ false

8) If an employee works for more than one employer in the year and pays more than the annual

maximum for EI as a result, they will receive a refund on their annual tax return. ⊚ true ⊚ false

9) If an employee works for more than one employer in the year and pays more than the annual

maximum for EI as a result, the employer will receive a refund on their annual tax return. ⊚ true ⊚ false

10) If an employer forgets to deduct Employment Insurance contributions from employee

payments, the employer will still have to remit both the employee and employer contributions at year end filing. ⊚ true ⊚ false

11) Quebec administers a separate program for both Employment Insurance and Pension that

requires remittances be made direct to the Province of Quebec rather than remitting to the federal Canada Revenue Agency. ⊚ true ⊚ false

12) All individuals who receive compensation from a business must be registered and covered by

the provincial Workers' Compensation program, including partners and executive officers. ⊚ true ⊚ false

13) Industry rates for Workers' Compensation premiums are determined based on the historical

rate of injury claims from the industry and may be higher depending on incidence of past claims. ⊚ true ⊚ false

14) Industry rates for Workers' Compensation premiums are likely to be lower for workers in

dangerous jobs such as logging than they are for office work. ⊚ true ⊚ false

15) Employers may register online for a business number and RP sub-account. ⊚ true ⊚ false

16) The total annual cost of Workers Compensation for an employer will be calculated by

multiplying assessable earnings times industry rate. ⊚ true ⊚ false

17) The calculation of Employer Health Taxes is the same for each province. ⊚ true ⊚ false

18) If an employer withholds a total of $35,000 annually from employee payments for Canada

Pension Plan contributions, the total required remittance amount to CRA for the year will be: A) $35,000 B) $70,000 C) $49,000 D) $84,000 E) $0

19) The fully loaded cost to an employer of hiring staff is equal to the employee gross wages plus

approximately ____ %. A) 5% B) 10% C) 15% D) 20% E) 25%

20) Employer contributions for Canada Pension Plan equal ___ % of the employee contribution

amount. A) 1.88% B) 4.95% C) 50% D) 100% E) 140%

21) Employer premiums for Employment Insurance equal ___ % of the employee contribution

amount. A) 1.88% B) 4.95% C) 50% D) 100% E) 140%

22) Employers must register with the Canada Revenue Agency to receive a ___ digit federal

Business Number A) 4 B) 7 C) 9 D) 11 E) 3

23) Each province and territory provides the administration of Workers' Compensation including

all but the following: A) Rates and classifications for application of rates B) Registration processes C) Benefit amounts for workers D) Bonuses for compliance E) Programs to facilitate return to work

24) A payroll sub-account with the Canada Revenue Agency begins with: A) RP B) 9 C) BN D) ID E) 0

25) Prior to 2019 the following province did not assess an Employer Health Tax: A) British Columbia B) Ontario C) Manitoba D) Quebec E) Newfoundland

26) The actual premium for an employer with payroll less than $1,200,00 for the Ontario

Employer Health tax must be submitted by: A) December 31 of the current year B) February 28 of the following year C) March 15 of the following year D) March 31 of the following year E) December 31 of the following year

27) The actual premium for the Ontario Employer Health tax must be submitted by: A) December 31 of the current year B) February 28 of the following year C) March 15 of the following year D) March 30 of the following year E) December 31 of the following year

28) When is an employer required to register a payroll sub-account under the Business Number? A) Prior to a sale being made. B) After the first year of payroll is complete. C) Prior to terminating an employee. D) Prior to the first remittance of statutory deductions. E) After the first sale is made.

29) In Ontario the administration of the worker insurance program is under the management of

the: A) B) C) D) E)

Worker Compensation Board Worker Safety and Insurance Board Services Canada Canada Revenue Agency Health Canada

30) Under which scenario could permission be granted to the employer to reduce the amount of

Employment Insurance premiums due to the Canada Revenue Agency? A) The employer has not laid off any employees in the past 10 years B) The employer has a short term disability plan that could reduce potential claims C) The employer has a resume service to former employees that could reduce potential claims D) The employer has limited funds available due to being new in the industry E) The employer has less than 10 employees

31) A federal Business Number with the Canada Revenue Agency is not required for the

following: A) To file tax returns. B) To register for the Goods and Services tax. C) To import or export goods. D) To register for the Harmonized Sales Tax. E) To advertise products online.

32) Employment Insurance is administered by: A) Employment Insurance Board B) Canada Revenue Agency C) Unemployment Insurance Board D) Service Canada E) Workers Compensation and Insurance Board

33) The 2022 maximum employer cost of CPP contributions per employee is: A) $3,427.90 B) $1,245.36 C) $930.08 D) $3,499.80 E) There is no maximum

34) The 2022 maximum employer cost of E.I. premium per employee is: A) $3,427.90 B) $1,333.84 C) $930.08 D) $3,166.45 E) There is no maximum

35) Name and describe the principles regarding insurance for injured workers common in all

jurisdictions as recommended by Sir William Ralph Meredith.

36) Calculate the Workers' Compensation premium owing for an employer in Ontario with

assessable earnings equal to $295,000 annually in the agricultural Industry rate category (assume no employees exceed the maximum assessable earnings for the year).

37) Calculate the Workers' Compensation premium owing for an employer in Ontario with

assessable earnings equal to $295,000 annually in the Educational facilities Industry rate category (assume no employees exceed the maximum assessable earnings for the year).

Answer Key Test name: ch 7 1) FALSE 2) TRUE 3) TRUE 4) TRUE 5) FALSE 6) FALSE 7) FALSE 8) TRUE 9) FALSE 10) TRUE 11) FALSE 12) FALSE 13) TRUE 14) FALSE 15) TRUE 16) TRUE 17) FALSE 18) B 19) D 20) D 21) E 22) C 23) D 24) A 25) A 26) D 27) C 28) D 29) B 30) B 31) E 32) D 33) D 34) B 35) Short Answer 36) Short Answer 37) Short Answer

Chapter 8:__________ 1) Payroll is generally a very small portion of company expenses, so accuracy isn't crucial. ⊚ true ⊚ false

2) Payroll register format is standardized and must be identical for every company in Canada. ⊚ true ⊚ false

3) Accounts are usually numbered for convenience and must follow a specific order as defined

by payroll compliance legislation. ⊚ true ⊚ false

4) The payroll administrator is normally responsible deciding on the general ledger accounts

that a company will use. ⊚ true ⊚ false

5) The payroll journal entry can be combined with the payroll expense journal entry should an

organization wish to do so. ⊚ true ⊚ false

6) The general ledger summarizes payroll information by employee. ⊚ true ⊚ false

7) Each account in the general ledger is a unique "page". ⊚ true ⊚ false

8) The payroll register provides detailed information for each employee's net pay for each pay. ⊚ true ⊚ false

9) The format for payroll registers is identical for all employers. ⊚ true ⊚ false

10) Payroll journal entries use different a different format than other journal entries for the

employer. ⊚ true ⊚ false

11) Accrual amounts to estimate additional costs are recorded for the same time period as for the

registers. ⊚ true ⊚ false

12) An employer will keep a separate general ledger for payroll information. ⊚ true ⊚ false

13) Here is a sample Payroll Register for a weekly payroll of an Ontario company: Week of Jan 31

Hours

Rate Employe e

Earnings Reg

Re OT g

Vac Pay

Gross

CPP

Fed Tax

Prov Tax

Net

A. Boss $40.0 37. 0 5

0 $1,500.0 0

$ - $90.00 $1,590.0 $75.37 $29.8 $286.2 $190.8 $1,007.7 0 9 0 0 4

C. Doer $15.0 20 0

0 $300.00

$ - $18.00 $318.00 $12.41 $5.98 $31.80 $159.0 $108.81 0

E. Fickle $12.5 37. 8.5 $468.75 $159.3 $37.69 $665.81 $29.63 $12.5 $119.8 $79.90 $423.91 0 5 8 2 5 G. Host $18.0 37. 0 5

4 $675.00 $108.0 $46.98 $829.98 $37.75 $15.6 $149.4 $99.60 $527.63 0 0 0

I. Jules $19.2 37. 5 5

0 $721.88

$ - $43.31 $765.19 $34.55 $14.3 $137.7 $91.82 $486.70 9 3

K. $25.0 Landing 0

0 $125.00

$ - $7.50 $132.50 $3.23 $2.49

Total

$ - $126.78

175 12. $3,790.6 $267.3 $243.4 $4301.48 $192.9 $80.8 $724.9 $621.1 $2681.57 5 3 8 8 4 7 8 2

Use the information in this table to answer the following question. Assuming this company uses direct deposit, how much money will need to be deposited to pay all of the employees what they are owed for this pay cycle? A) $4,301.48 B) $3,790.63 C) $1,007.74 D) $2,681.57 E) $1,619.91

14) Here is a sample Payroll Register for a weekly payroll of an Ontario company: Week of Jan 31

Hours

Rate Employe e

Earnings Reg

Re OT g

Vac Pay

Gross

CPP

Fed Tax

Prov Tax

Net

A. Boss $40.0 37. 0 5

0 $1,500.0 0

$ - $90.00 $1,590.0 $75.37 $29.8 $286.2 $190.8 $1,007.7 0 9 0 0 4

C. Doer $15.0 20 0

0 $300.00

$ - $18.00 $318.00 $12.41 $5.98 $31.80 $159.0 $108.81 0

E. Fickle $12.5 37. 8.5 $468.75 $159.3 $37.69 $665.81 $29.63 $12.5 $119.8 $79.90 $423.91 0 5 8 2 5 G. Host $18.0 37. 0 5

4 $675.00 $108.0 $46.98 $829.98 $37.75 $15.6 $149.4 $99.60 $527.63 0 0 0

I. Jules $19.2 37. 5 5

0 $721.88

$ - $43.31 $765.19 $34.55 $14.3 $137.7 $91.82 $486.70 9 3

K. $25.0 Landing 0

0 $125.00

$ - $7.50 $132.50 $3.23 $2.49

Total

$ - $126.78

175 12. $3,790.6 $267.3 $243.4 $4301.48 $192.9 $80.8 $724.9 $621.1 $2681.57 5 3 8 8 4 7 8 2

Use the information in this table to answer the following question. How much will D.C. Doer have deposited into their bank account for this pay cycle? A) $318.00 B) $159.00 C) $300.00 D) $108.81 E) $423.91

15) Here is a sample Payroll Register for a weekly payroll of an Ontario company: Week of Jan 31

Hours

Rate Employe e

Earnings Reg

Re OT g

Vac Pay

Gross

CPP

Fed Tax

Prov Tax

Net

A. Boss $40.0 37. 0 5

0 $1,500.0 0

$ - $90.00 $1,590.0 $75.37 $29.8 $286.2 $190.8 $1,007.7 0 9 0 0 4

C. Doer $15.0 20 0

0 $300.00

$ - $18.00 $318.00 $12.41 $5.98 $31.80 $159.0 $108.81 0

E. Fickle $12.5 37. 8.5 $468.75 $159.3 $37.69 $665.81 $29.63 $12.5 $119.8 $79.90 $423.91 0 5 8 2 5 G. Host $18.0 37. 0 5

4 $675.00 $108.0 $46.98 $829.98 $37.75 $15.6 $149.4 $99.60 $527.63 0 0 0

I. Jules $19.2 37. 5 5

0 $721.88

$ - $43.31 $765.19 $34.55 $14.3 $137.7 $91.82 $486.70 9 3

K. $25.0 Landing 0

0 $125.00

$ - $7.50 $132.50 $3.23 $2.49

Total

$ - $126.78

175 12. $3,790.6 $267.3 $243.4 $4301.48 $192.9 $80.8 $724.9 $621.1 $2681.57 5 3 8 8 4 7 8 2

Use the information in this table to answer the following question. How much does K. Landing earn per hour? A) $19.25 B) $25.00 C) $40.00 D) $12.50 E) $15.00

16) Here is a sample Payroll Register for a weekly payroll of an Ontario company: Week of Jan 31

Hours

Rate Employe e

Earnings Reg

Re OT g

Vac Pay

Gross

CPP

Fed Tax

Prov Tax

Net

A. Boss $40.0 37. 0 5

0 $1,500.0 0

$ - $90.00 $1,590.0 $75.37 $29.8 $286.2 $190.8 $1,007.7 0 9 0 0 4

C. Doer $15.0 20 0

0 $300.00

$ - $18.00 $318.00 $12.41 $5.98 $31.80 $159.0 $108.81 0

E. Fickle $12.5 37. 8.5 $468.75 $159.3 $37.69 $665.81 $29.63 $12.5 $119.8 $79.90 $423.91 0 5 8 2 5 G. Host $18.0 37. 0 5

4 $675.00 $108.0 $46.98 $829.98 $37.75 $15.6 $149.4 $99.60 $527.63 0 0 0

I. Jules $19.2 37. 5 5

0 $721.88

$ - $43.31 $765.19 $34.55 $14.3 $137.7 $91.82 $486.70 9 3

K. $25.0 Landing 0

0 $125.00

$ - $7.50 $132.50 $3.23 $2.49

Total

$ - $126.78

175 12. $3,790.6 $267.3 $243.4 $4301.48 $192.9 $80.8 $724.9 $621.1 $2681.57 5 3 8 8 4 7 8 2

Use the information in this table to answer the following question. How much will the company owe for the employer portion of Employment Insurance premiums for this pay cycle? A) $192.94 B) $385.88 C) $80.87 D) $113.22 E) $194.09

17) Here is a sample Payroll Register for a weekly payroll of an Ontario company: Week of Jan 31

Hours

Rate Employe e

Earnings Reg

Re OT g

Vac Pay

Gross

CPP

Fed Tax

Prov Tax

Net

A. Boss $40.0 37. 0 5

0 $1,500.0 0

$ - $90.00 $1,590.0 $75.37 $29.8 $286.2 $190.8 $1,007.7 0 9 0 0 4

C. Doer $15.0 20 0

0 $300.00

$ - $18.00 $318.00 $12.41 $5.98 $31.80 $159.0 $108.81 0

E. Fickle $12.5 37. 8.5 $468.75 $159.3 $37.69 $665.81 $29.63 $12.5 $119.8 $79.90 $423.91 0 5 8 2 5 G. Host $18.0 37. 0 5

4 $675.00 $108.0 $46.98 $829.98 $37.75 $15.6 $149.4 $99.60 $527.63 0 0 0

I. Jules $19.2 37. 5 5

0 $721.88

$ - $43.31 $765.19 $34.55 $14.3 $137.7 $91.82 $486.70 9 3

K. $25.0 Landing 0

0 $125.00

$ - $7.50 $132.50 $3.23 $2.49

Total

$ - $126.78

175 12. $3,790.6 $267.3 $243.4 $4301.48 $192.9 $80.8 $724.9 $621.1 $2681.57 5 3 8 8 4 7 8 2

Use the information in this table to answer the following question. How much will the company owe for the employer portion of Canada Pension Plan deductions for this pay cycle? A) $192.94 B) $385.88 C) $80.87 D) $113.22 E) $194.09

18) Here is a sample Payroll Register for a weekly payroll of an Ontario company: Week of Jan 31

Hours

Rate Employe e

Earnings Reg

Re OT g

Vac Pay

Gross

CPP

Fed Tax

Prov Tax

Net

A. Boss $40.0 37. 0 5

0 $1,500.0 0

$ - $90.00 $1,590.0 $75.37 $29.8 $286.2 $190.8 $1,007.7 0 9 0 0 4

C. Doer $15.0 20 0

0 $300.00

$ - $18.00 $318.00 $12.41 $5.98 $31.80 $159.0 $108.81 0

E. Fickle $12.5 37. 8.5 $468.75 $159.3 $37.69 $665.81 $29.63 $12.5 $119.8 $79.90 $423.91 0 5 8 2 5 G. Host $18.0 37. 0 5

4 $675.00 $108.0 $46.98 $829.98 $37.75 $15.6 $149.4 $99.60 $527.63 0 0 0

I. Jules $19.2 37. 5 5

0 $721.88

$ - $43.31 $765.19 $34.55 $14.3 $137.7 $91.82 $486.70 9 3

K. $25.0 Landing 0

0 $125.00

$ - $7.50 $132.50 $3.23 $2.49

Total

$ - $126.78

175 12. $3,790.6 $267.3 $243.4 $4301.48 $192.9 $80.8 $724.9 $621.1 $2681.57 5 3 8 8 4 7 8 2

Use the information in this table to answer the following question. How many employees worked during this pay cycle? A) 8 B) 7 C) 6 D) 5 E) 4

19) Here is a sample Payroll Register for a weekly payroll of an Ontario company: Week of Jan 31

Hours

Rate Employe e

Earnings Reg

Re OT g

Vac Pay

Gross

CPP

Fed Tax

Prov Tax

Net

A. Boss $40.0 37. 0 5

0 $1,500.0 0

$ - $90.00 $1,590.0 $75.37 $29.8 $286.2 $190.8 $1,007.7 0 9 0 0 4

C. Doer $15.0 20 0

0 $300.00

$ - $18.00 $318.00 $12.41 $5.98 $31.80 $159.0 $108.81 0

E. Fickle $12.5 37. 8.5 $468.75 $159.3 $37.69 $665.81 $29.63 $12.5 $119.8 $79.90 $423.91 0 5 8 2 5 G. Host $18.0 37. 0 5

4 $675.00 $108.0 $46.98 $829.98 $37.75 $15.6 $149.4 $99.60 $527.63 0 0 0

I. Jules $19.2 37. 5 5

0 $721.88

$ - $43.31 $765.19 $34.55 $14.3 $137.7 $91.82 $486.70 9 3

K. $25.0 Landing 0

0 $125.00

$ - $7.50 $132.50 $3.23 $2.49

Total

$ - $126.78

175 12. $3,790.6 $267.3 $243.4 $4301.48 $192.9 $80.8 $724.9 $621.1 $2681.57 5 3 8 8 4 7 8 2

Use the information in this table to answer the following questions. How many hours did M. Host work in the week of Jan. 31? A) 37.5 B) 4 C) 8.5 D) 20 E) 41.5

20) The payroll journal entry generally does not include: A) The date B) A description C) Account numbers and names D) Employee numbers and names E) Debit and Credit amounts

21) In payroll terms, a register is: A) A record of each employee's earnings per pay B) The first accounting record of payroll C) Both A and B D) A point of sale terminal that holds cash E) A list of all shareholders in the company

22) Accounting journal entries are posted to the ___________ of an organization. A) General Ledger B) General Accounts C) General Journal D) Ledger Record E) Journal Record

23) The reference column in the general ledger indicates: A) The name of the person who was paid B) The date of the entry C) The journal entry the transaction originated from D) The name of the person who updated the account E) Nothing. This column is always left blank in practice

24) Here is a sample Payroll Register for a weekly payroll of an Ontario company: Week of Jan 31

Hours

Rate Employe e

Earnings Reg

Re OT g

Vac Pay

Gross

CPP

Fed Tax

Prov Tax

Net

H.Boss $40.0 37. 0 5

0 $1,500.0 0

$ - $90.00 $1,590.0 $75.37 $29.8 $286.2 $190.8 $1,007.7 0 9 0 0 4

J.Doer $15.0 20 0

0 $300.00

$ - $18.00 $318.00 $12.41 $5.98 $31.80 $159.0 $108.81 0

L.Fickle $12.5 37. 8.5 $468.75 $159.3 $37.69 $665.81 $29.63 $12.5 $119.8 $79.90 $423.91 0 5 8 2 5 N.Host $18.0 37. 0 5

4 $675.00 $108.0 $46.98 $829.98 $37.75 $15.6 $149.4 $99.60 $527.63 0 0 0

P.Jules $19.2 37. 5 5

0 $721.88

$ - $43.31 $765.19 $34.55 $14.3 $137.7 $91.82 $486.70 9 3

R.Landin $25.0 g 0

0 $125.00

$ - $7.50 $132.50 $3.23 $2.49

Total

$ - $126.78

175 12. $3,790.6 $267.3 $243.4 $4301.48 $192.9 $80.8 $724.9 $621.1 $2681.57 5 3 8 8 4 7 8 2

Use the information in this table to answer the following questions.

24.1)

Use the payroll register provided to create the payroll journal entry for Jan. 31. Exclude the employer portions for this entry. Ignore the requirement for account numbers for this question.

24.2)

Use the payroll register provided to create the journal entry to record the employer expenses related to Canada Pension Plan contributions, Employment Insurance premiums, Vacation pay and Workers compensation premiums (assume the company pays based on the average Ontario premium rate of $2.46 per $100 of payroll). Ignore the requirement for account numbers for this question.

24.3)

Explain what Asset accounts generally represent and give 2 examples.

24.4)

Explain what Expense accounts generally represent and give 2 examples.

24.5)

List 4 or more expenses incurred by a business when they hire and pay employees.

24.6)

Explain what Liability accounts generally represent and give 2 examples.

Answer Key Test name: ch 8 1) FALSE 2) FALSE 3) FALSE 4) FALSE 5) TRUE 6) FALSE 7) TRUE 8) TRUE 9) FALSE 10) FALSE 11) TRUE 12) FALSE 13) D 14) D 15) B 16) D 17) A 18) C 19) E 20) D 21) C 22) A 23) C 24) Section Break 24.1) Short Answer 24.2) Short Answer 24.3) Short Answer 24.4) Short Answer 24.5) Short Answer 24.6) Short Answer

Chapter 9:__________ 1) If you do not purchase a payroll processing system, you will not be able to calculate

employee pay properly. ⊚ true ⊚ false

2) Purchasing a payroll processing system is a great way to reduce the burden on the payroll

administrator as the software provider will assume the responsibility for meeting contractual obligations and legislative compliance. ⊚ true ⊚ false

3) Once you have a computerized payroll system in place, manual processing methods may still

need to be used to test the system and to deal with any unusual payments the system is unable to handle. ⊚ true ⊚ false

4) Manual processing can be enhanced by using electronic spreadsheets that automate the

calculation of Federal and Provincial tax deductions. ⊚ true ⊚ false

5) Companies using manual payroll processing are unable to meet the regulatory reporting

requirements as outlined by the Canada Revenue Agency. ⊚ true ⊚ false

6) Employers will often need to change their business processes based on the integrated

computer system they have installed. ⊚ true ⊚ false

7) Out-sources payroll systems are normally available free of charge and require no input from

payroll administrators. ⊚ true ⊚ false

8) When a new computerized payroll system is purchased, it will come pre-loaded with all of

the information you need to start processing pay. ⊚ true ⊚ false

9) Any replacement or additional payments processed through manual cheque preparation will

be automatically recorded by the payroll processing software. ⊚ true ⊚ false

10) Computerized payroll systems have a variety of programs specifically designed for the year-

end. ⊚ true ⊚ false

11) When setting up a new payroll system defaults can be used for many of the common settings

to help save time. ⊚ true ⊚ false

12) A company with 5 employees and an expert payroll professional must work quickly to create

a system needs list and review options for computerized payroll or they will face fines and fees from the Canada Revenue Agency. ⊚ true ⊚ false

13) All suppliers must comply with the basics of Canadian Payroll Administration to ensure the

employers meet minimum legislative compliance. ⊚ true ⊚ false

14) Use of an excel spreadsheet for payroll processing is considered a type of manual system. ⊚ true ⊚ false

15) Computerized systems reduce risk of errors. ⊚ true ⊚ false

16) The company setup in a computerized system provides all necessary information to process

payrolls. ⊚ true ⊚ false

17) Each employee in a computerized system must have all relevant personal information

entered. ⊚ true ⊚ false

18) Data entry is a step in computerized systems for the updating of company and employee

information, as well as recording payroll cycle data. ⊚ true ⊚ false

19) Company specific information required for payroll processing in a computerized system

includes all but the following: A) Legal name B) Company address C) Annual revenue D) CRA registration number E) Revenue Quebec account number

20) ERP stands for: A) Enterprise Recording Program B) Enterprise Retention Planning C) Electronic Resource Planning D) Electronic Recording Program E) Enterprise Resource Planning

21) The advantages of computerized payroll systems do not include: A) Minimizing management responsibility B) The ability to process large amounts of data accurately C) Output files can be created for other uses D) Input of information can be automated from other systems E) Tables for calculation of withholdings can be included with the software

22) Computer processing choices do not include: A) Stand-alone computer systems B) Hyperactive integrity systems C) Out-sourced payroll systems D) Hybrid integrated systems E) Integrated management systems

23) An example of a non-recurring payment to employees that would need to be prepared and

approved before processing payroll is: A) Weekly sales commissions B) Retroactive wage adjustments C) Shift premiums D) Salary E) Parking allowance

24) This is not an advantage of using an integrated computer system. A) Data is usually only entered once and processed as needed B) The software is normally tested and updates are provided from the supplier C) The software is normally provided free of charge and no training is required D) Required reports are automatically produced after each pay cycle E) Usually include a Canadian payroll module

25) Stand-alone systems are generally a good choice when: A) The company is very large and owner wants the records to be viewable at the

workplace B) There is a need to access the system through the intranet or internet C) There is a need to share payroll information between many employees at remote locations D) The payroll administrator is an expert in the system and integration is not important to the employer E) There is a need to share information from the payroll records with other systems operated by the employer

26) Explain some of the drawbacks associated with using computerized payroll processing.

27) Explain the value an out-sourced payroll service provider can offer to an employer.

28) What factors should an employer consider when determining their needs for a new

computerized payroll system?

29) List 7 important questions that should be addressed when reviewing software options for

payroll.

Answer Key Test name: ch 9 1) FALSE 2) FALSE 3) TRUE 4) FALSE 5) FALSE 6) TRUE 7) FALSE 8) FALSE 9) FALSE 10) TRUE 11) TRUE 12) FALSE 13) TRUE 14) TRUE 15) FALSE 16) FALSE 17) TRUE 18) TRUE 19) C 20) E 21) A 22) B 23) B 24) C 25) D 26) Short Answer 27) Short Answer 28) Short Answer 29) Short Answer

Chapter 10:__________ 1) In addition to calculating earnings, deductions and employer obligations arising from payroll,

payroll administrators must ensure that all liabilities resulting from the payroll process are paid on time. ⊚ true ⊚ false

2) Withholdings deducted from employee payments may be used to cover operational costs in

between due dates. ⊚ true ⊚ false

3) In Ontario workers' compensation monthly premiums are paid based on actual insurable

earnings at the end of the year. ⊚ true ⊚ false

4) In Quebec the payment of the contribution to the Health Services Fund must be made to the

Canada Revenue Agency. ⊚ true ⊚ false

5) In Manitoba, monthly payments of Health taxes must be made for employers with annual

payroll in excess of $1,000,000 by the 15th of the following month. ⊚ true ⊚ false

6) Newfoundland and Labrador require monthly Health Tax payments within 20 calendar days

of the end of the month, regardless of the size of the annual payroll. ⊚ true ⊚ false

7) Late payment to employees can lead to negative morale. ⊚ true ⊚ false

8) The schedule of payment to courts for garnishment orders is set by the employer. ⊚ true ⊚ false

9) Normally payments to courts for garnishment orders will be required on the same date as

payment to employee's pay. ⊚ true ⊚ false

10) The timing of payment of other deductions will normally be dependent on contractual

obligations. ⊚ true ⊚ false

11) The CRA will only accept payment by electronic funds transfer. ⊚ true ⊚ false

12) How can you determine the due dates for court ordered deductions? A) Ask the employee B) Review the terms of the order C) All are due on a monthly basis D) All are due on the same date as the employee receives their pay E) Use the default in the payroll system

13) Missing a scheduled pay date: A) Is a method of saving money B) Is likely to improve employee morale C) Can result in fines and grievance costs D) Often translates into improved customer service E) Can reduce the costs of interest and bank fees

14) Remittances to the Canada Revenue Agency may not be made by: A) Mailed Cash B) Mailed Cheque C) Cheque taken to an agency office D) Payment made by an out-source payroll provider E) Funds transfer from the employers' bank account

15) All payroll remittance payments made to the Canada Revenue Agency must have

_____________ attached. A) A blank void cheque B) The employer's payroll business number C) Employee Social Insurance Numbers D) A T4A Summary form E) The employer's HST filing number

16) If Ontario workers' compensation payments based on estimates result in an overpayment on

filing the annual report, the employer will: A) Incur a fine in penalty B) Receive a rebate in the mail C) Have the amount credited to the following year D) Forfeit the amount of the overpayment E) Face a formal audit from the Canada Revenue Agency

17) If your average monthly remittance in the 2nd preceding year was $2,500 your remittance for

amounts deducted on the January 14th pay is due on: A) April 15 B) February 15 C) January 14 D) January 25 E) The 3rd business day following January 14

18) If your average monthly remittance in the 2nd preceding year was $24,500 your remittance

for amounts deducted on the January 14th pay is due on: A) April 15 B) February 15 C) January 14 D) January 25 E) The 3rd business day following January 14

19) If your average monthly remittance in the 2nd preceding year was $45,720 your remittance

for amounts deducted on the January 14th pay is due on: A) April 15 B) February 15 C) January 14 D) January 25 E) The 3rd business day following January 14

20) If your average monthly remittance in the 2nd preceding year was $103,117 your remittance

for amounts deducted on the January 14th pay is due on: A) April 15 B) February 15 C) January 14 D) January 25 E) The 3rd business day following January 14

21) If you are a new business and did not have any remittances due 2 years ago, your remittance

for amounts deducted on the January 14th pay is due on: A) April 15 B) February 15 C) January 14 D) January 25 E) The 3rd business day following January 14

22) An Ontario employer with annual insurable earnings of $1,050,000 would be required to

remit workers' compensation premiums for the month of April by: A) April 30th B) May 31st C) June 30th D) July 31st E) April 30th of the following year

23) An Ontario employer with annual insurable earnings of $15,000 would be required to remit

workers' compensation premiums for the month of April by: A) April 30th B) May 31st C) June 30th D) July 31st E) April 30th of the following year

24) An Ontario employer with annual insurable earnings of $250,000 would be required to remit

workers' compensation premiums for the month of April by: A) April 30th B) May 31st C) June 30th D) July 31st E) April 30th of the following year

25) If your average monthly remittance in the 2nd preceding year was $2,500 you must remit

amounts owed to the Canada Revenue Agency A) Annually B) Quarterly C) Monthly D) Semi-monthly (Accelerated 1) E) Weekly (Accelerated 2)

26) If your average monthly remittance in the 2nd preceding year was $24,500 you must remit

amounts owed to the Canada Revenue Agency A) Annually B) Quarterly C) Monthly D) Semi-monthly (Accelerated 1) E) Weekly (Accelerated 2)

27) If your average monthly remittance in the 2nd preceding year was $45,720 you must remit

amounts owed to the Canada Revenue Agency A) Annually B) Quarterly C) Monthly D) Semi-monthly (Accelerated 1) E) Weekly (Accelerated 2)

28) If your average monthly remittance in the 2nd preceding year was $103,117 you must remit

amounts owed to the Canada Revenue Agency A) Annually B) Quarterly C) Monthly D) Semi-monthly (Accelerated 1) E) Weekly (Accelerated 2)

29) If you are a new business and did not have any remittances due 2 years ago, you must remit

amounts owed to the Canada Revenue Agency A) Annually B) Quarterly C) Monthly D) Semi-monthly (Accelerated 1) E) Weekly (Accelerated 2)

30) The largest and most frequent disbursement of payroll funds is typically for: A) Remittance to unions B) Remittance to charities C) Remittance to Canada Revenue Agency D) Net pay to employees E) RRSP contributions to financial institutions

31) If payment to the Canada Revenue Agency is made by cheque, the form ________ must be

submitted with the payment. A) TD1 B) T4 C) ROE D) PD7 E) T2200

32) The frequency of remittances to the Canada Revenue Agency will depend on: A) The average monthly remittance in the current year B) The average monthly remittance in the preceding year C) The average monthly remittance in the 2nd preceding year D) The monthly remittance amount from the preceding month E) The monthly remittance amount from the 2nd preceding month

33) Explain why it is important that payroll is processed in time for payments to be received on

the due date.

34) List 5 steps that can be taken to facilitate the processing of payroll on time.

Answer Key Test name: ch 10 1) TRUE 2) FALSE 3) FALSE 4) FALSE 5) FALSE 6) TRUE 7) TRUE 8) FALSE 9) TRUE 10) TRUE 11) FALSE 12) B 13) C 14) A 15) B 16) C 17) A 18) B 19) D 20) E 21) B 22) B 23) E 24) D 25) B 26) C 27) D 28) E 29) C 30) D 31) D 32) C 33) Short Answer 34) Short Answer

Chapter 11:__________ 1) Emotionally distressed employees who have just been terminated may rely on the payroll

administrator to explain the documents that are provided to Service Canada. ⊚ true ⊚ false

2) The Record of Employment must be filed with the Canada Revenue Agency accurately and

on time. ⊚ true ⊚ false

3) Business is slow and your boss informs you that Jeff Fray will not be needed in to work for at

least another 2 weeks, possibly longer. You do not need to issue a Record of Employment because you have been assured that he will be called back when business picks up again. ⊚ true ⊚ false

4) Ines Perez is off work due to illness and is not expected to be well for at least 6 months. Your

company has a policy that employees will be compensated 25% of their normal wage for approved sick leave for up to 12 calendar months. You do not need to issue a Record of Employment because Ines’s sick leave is approved and her pay has not been discontinued as she is still receiving 25% of her previous income. ⊚ true ⊚ false

5) Sam Ditto is a casual employee who works irregular hours and shifts. Sam has not been

scheduled to work for the past 2 weeks. You do not need to issue a Record of Employment for Sam because he does not have a regular work schedule and his employment contract has not been terminated. ⊚ true ⊚ false

6) A temporary layoff must be reclassified as a termination if the employee is not recalled

within thirteen weeks. ⊚ true ⊚ false

7) If an employee is expected to be recalled within 13 weeks of a layoff, notice is not required. ⊚ true ⊚ false

8) If an employee feels they have not received enough compensation for loss of employment,

they may take legal action even if all of the minimum standards for the jurisdiction have been met. ⊚ true ⊚ false

9) Emotionally distressed employees who have just been terminated may rely on the payroll

administrator to counsel them on how to proceed with their job search and to decrease the emotional pressure they experience. ⊚ true ⊚ false

10) Manually completed Records of Employment are no longer accepted by Service Canada. ⊚ true ⊚ false

11) Whether you file the Record of Employment manually or electronically, the employee must

be provided with a copy of the completed form. ⊚ true ⊚ false

12) The employer must maintain their file copy of the Record Employment for seven years. ⊚ true ⊚ false

13) Severance pay must be offered to every terminated employee as an apology for the emotional

pain and suffering associated with the job loss. ⊚ true ⊚ false

14) In order for retiring allowances to be transferred to a Registered Retirement Savings Plan

without payroll withholding of taxes, the employee must have been with the company prior to 1996. ⊚ true ⊚ false

15) In order for years of service prior to 1989 to be considered in the eligible retiring allowance

calculation, the employee must have received vested Registered Pension Fund contributions in their name during that time. ⊚ true ⊚ false

16) Even if the employee did not work for the company prior to 1996, non-eligible retiring

allowances can be paid directly to an RRSP up to the amount of any unused contribution limit. ⊚ true ⊚ false

17) Compensation paid to an employee on termination is limited to employment standards

requirements. ⊚ true ⊚ false

18) Use of a checklist for termination of employment is required by legislation. ⊚ true ⊚ false

19) Communication to other employees and stakeholders is an important step in a termination of

employment checklist. ⊚ true ⊚ false

20) Records of Employment must be submitted online. ⊚ true ⊚ false

21) Most employees who receive retiring allowances will be eligible to have the amounts paid

into a RRSP without tax withholding. ⊚ true ⊚ false

22) An employee who has been with the company since 1989 has been terminated with a

generous severance package. How much are they eligible to roll into an RRSP without tax withholding? A) $14,000 B) $16,000 C) $18,000 D) $19,500 E) None

23) Manually completed Records of Employment must be completed within ___ calendar days of

the first day of the interruption of earnings. A) 14 B) 12 C) 7 D) 5 E) 3

24) If a termination checklist includes tasks that must be completed in departments outside of

payroll, what is the responsibility of the payroll administrator regarding these items? A) Verify that steps have been taken B) Train in the other department to become capable of completing all items on the list C) Permanently remove the item from the list D) Mark the item as complete as it is outside of their control E) Leave the spot blank and file the checklist

25) The main document to record an interruption of earnings that is filed with Service Canada is

called the: A) Record of Employment B) Register of Employment C) Record of Executor D) Registration of Engagement E) Record of Engagement

26) This is typically not included on a termination checklist. A) Notify other employees who will be their ongoing contact B) Issue a Record of Employment C) Request return of company computer and keys D) Schedule a going away party E) Cancel authority such as bank signatory

27) A(n) ______________ is not considered an "interruption of earnings". A) Period of seven consecutive calendar days without work or insurable earnings B) Reduction of salary below 60% of regular weekly insurable earnings C) Termination of employment contract D) Employee quitting their job with the company E) Scheduled vacation of 14 consecutive calendar days

28) What earnings must be included on the final payment for a terminated employee with no

expectation of recall?

29) Create a checklist for termination for a small company. What types of things should be

included in order to ensure nothing is missed?

30) The Record of Employment is an extremely important document. Explain who it is used by

and what for.

Answer Key Test name: ch 11 1) TRUE 2) FALSE 3) FALSE 4) FALSE 5) TRUE 6) TRUE 7) TRUE 8) TRUE 9) FALSE 10) FALSE 11) FALSE 12) FALSE 13) FALSE 14) TRUE 15) FALSE 16) TRUE 17) FALSE 18) FALSE 19) TRUE 20) FALSE 21) FALSE 22) A 23) D 24) A 25) A 26) D 27) E 28) Short Answer 29) Short Answer 30) Short Answer

Chapter 12:__________ 1) Employers are welcome to continue using paper T4 forms no matter how many employees

they have. ⊚ true ⊚ false

2) It is permissible to send different versions of T4s to CRA than the employee receives. ⊚ true ⊚ false

3) A separate T4 summary will need to be filed for every employee on payroll. ⊚ true ⊚ false

4) Repeat offenders for late filing of the Ontario Health Tax Return may face stiffer penalties

than first offenders. ⊚ true ⊚ false

5) Employers may be exempted from paying the Ontario Health Tax if their Total Ontario

Remuneration falls below the annual exemption threshold. ⊚ true ⊚ false

6) The CRA allows employers to design their own forms to submit annual employee

information. ⊚ true ⊚ false

7) The T4 information slip has required information for employees to file their tax return. ⊚ true ⊚ false

8) Workers' compensation year end filing requirements will vary by province/territory. ⊚ true ⊚ false

9) Year-end checklists are required by the CRA. ⊚ true ⊚ false

10) Year-end checklists will be specific to individual employers. ⊚ true ⊚ false

11) First time offenders who file the Ontario Health Tax Return late may face penalties of up to

___ of the tax owing. A) 8% B) 17% C) 20% D) 38% E) 50%

12) How many copies of each T4 at minimum are required? A) 1 B) 2 C) 3 D) 4 E) 5

13) If an employer has greater than ___ employees, they must submit T4s electronically through

the internet. A) 5 B) 25 C) 50 D) 100 E) 500

14) Include this in Box 14 of the T4: A) All employment income before deductions B) All salary and wages excluding bonus and vacation pay C) All salary, wages, severance, RRSP payments, and bonuses D) All employment income less deductions made for the year E) All federal and provincial taxes deducted

15) If an employee is under the age of 18, what additional T4 box will need to be adjusted for

them? A) B) C) D) E)

Box 22 Box 24 Box 26 Box 28 Box 44

16) When are personal tax filings typically due? A) By April 15th of the subsequent year B) By April 1st of the subsequent year C) By the last day of February of the subsequent year D) By December 31st of the current year E) By April 30th of the subsequent year

17) When must the T4 slip be submitted to the Canada Revenue Agency by? A) By April 15th of the subsequent year B) By April 1st of the subsequent year C) By the last day of February of the subsequent year D) By December 31st of the current year E) By April 30th of the subsequent year

18) The Ontario Workers Compensation Reconciliation Form is due by: A) April 30th of the subsequent year B) March 31st of the subsequent year C) December 31st of the current year D) The last day of February of the subsequent year E) April 15th of the subsequent year

19) The Ontario government requires that employers submit an Ontario Health Tax Return by: A) April 30th of the subsequent year B) March 31st of the subsequent year C) December 31st of the current year D) The last day of February of the subsequent year E) March 15th of the subsequent year

20) What do you do if you do not have the SIN when completing a T4? A) Leave it blank B) Do not file the T4 C) Enter nine 9's D) Enter nine 0's E) Use your SIN

21) This deduction from Gross Earnings is not allowed in the annual Workers Compensation

Reconciliation Form. A) Non-insurable gross earnings B) Non-insurable gross earnings for out of province workers C) Executive Officer's earnings D) Excess earnings over the assessable maximum per employee E) Contractors' Earnings for contractors not supplying a clearance certificate

22) If the Ontario Workers Compensation Reconciliation Form shows that the total premium

owed is less than the total premium remitted for the calendar year, a(n) __________ must accompany the filing. A) Apology B) Cheque C) Explanation D) Gift E) Resignation

23) If an employee worked in more than one province or territory during the year the employer

should: A) B) C) D)

Total the amounts and create one combined T4 List the province of employment as the location where the most income was earned Leave off the amounts earned in the lower income province Put a note in the "Other Information" area at the bottom of the T4 explaining the complication E) Create a separate T4 slip for the earnings and deductions that apply to each province or territory

24) If there is a balance in this line of the T4 summary, you will need to send payment upon

filing. A) B) C) D) E)

Line 80 Line 82 Line 84 Line 86 Line 88

25) What are the possible penalties for failing to file T4s and the T4 summary by the due date? A) Incarceration B) Community service C) Monetary penalties D) Public reprimand E) Removal of operating privileges

26) What do employees use T4 forms for? A) To prepare and submit their personal income tax return B) To prepare and submit the company income tax return C) To apply for Employment Insurance benefits D) To apply for Workers Compensation E) To include in their annual Christmas Cards

27) Ontario Health Tax payable is based on: A) Total Net Pay B) Total Ontario Remuneration C) Total Canada Pension Plan Contributions D) Total Employment Insurance Premiums E) Total Vacation Payable

28) Why is January such a busy time for payroll administrators?

29) What is a T4 Summary? Who completes it? When must it be filed?

30) Create a version of a year-end checklist that you could use for working as a payroll

administrator in a small to medium size business.

Answer Key Test name: ch 12 1) FALSE 2) FALSE 3) FALSE 4) TRUE 5) TRUE 6) FALSE 7) TRUE 8) TRUE 9) FALSE 10) TRUE 11) B 12) C 13) C 14) A 15) D 16) E 17) C 18) B 19) E 20) D 21) E 22) B 23) E 24) D 25) C 26) A 27) B 28) Short Answer 29) Short Answer 30) Short Answer