Chapter 1

Question 1

What is the primary objective of the payroll department?

Answer 1

The primary objective of the payroll department is to pay employees accurately and on time, in compliance with the legislative requirements for a full annual payroll cycle

Question 2

List 4 definitions of payroll

Answer 2

1. the department that administers the payroll
2. the total number of people employed by an organization
3. the wages and salaries paid out in a year
4. a list of employees to be paid and the amount due to each

Question 3

list the 3 typers of payroll management stakeholders and provide an example of each

Answer 3

payroll management stakeholders are government (federal and provincial/territorial) internal (employees employers and other departments) external (benefit carriers, courts, unions, pension providers, charities, third party admin and outsource/software vendors)

Question 4

which jurisdiction does employees of Canada Post fall under

Answer 4

federal jurisdiction

Question 5

which jurisdiction do employees if insurance companies fall under

Answer 5

provincial/territorial jurisdiction

Question 6

which jurisdiction does a uranium mining company fall under

Answer 6

federal jurisdiction

Question 7

which jurisdiction does the Canadian Broadcasting Corporation fall under

Answer 7

federal jurisdiction

Question 8

retail department stores with locations in every province fall under what jurisdiction?

Answer 8

provincial/ territorial jurisdiction

Question 9

chartered bank employees fall under which jurisdiction?

Answer 9

federal jurisdiction

Question 10

explain the difference between legislation and regulation?

Answer 10

legislation determines what the rules are, while regulations determine how the rules are to be applied.

Question 11

What are examples of sources that could be used to keep up to-date on payroll compliance changes?

Answer 11

• National Payroll Institute offers payroll info line a phone-in and email information for service members
• CRA produces guides publications and Income tax bulletins folios and posts news bulletins ect.
• RQ website provides guides publications bulletins forms and online services
• ESDC and Service Canada publications including infor on EI and social insurance number

Copies of legislation are available form the printing offices of the federal and provincial and territorial governments as well as through government websites

Question 12

List external stakeholders?

Answer 12

• benefit carriers
  -Courts and the CRA
• Unions
• Pension Providers
• Charities
• Third party administrators
• outsource/software vendors

Question 13

What is the difference between a contract of service and a contract for service?

Answer 13

contract of service is an arrangement whereby an individual (employee) agrees to work on a full-time or part-time basis for and employer for a specified or indeterminate period.

contract for service is a business relationship whereby one party agrees to perform certain specific work stipulated in the contract for another party

Question 14

What are the factors that the CRA considers when determining if a contract of service or a contract for service exists?

Answer 14

• the level of control the payer has over the worker
• whether or not the worker provides the tools and equipment
• whether the worker can subcontract the work or hire assistants
• the degree of financial risk taken by the worker
• the degree of responsibility for investment and management held by the worker
• the workers opportunity for profit
• any other relevant factors such as written contracts

Question 15

effective payroll practitioners should be
1. conscientious
2. discreet
3. trustworthy
4. all of the above

Answer 15

4 all of the above

Question 16

The Canada Labour Code consists of:

Answer 16

employment standards
industrial relations
occupational health and safety

Question 17

The process of paying employees in exchange for the services they perform is referred to as:

Answer 17

payroll

Question 18

In which of the following places of employment would the employees fall under federal jurisdiction?
1. trust company
2. canada post corporation
3. insurance agency
4. retail store

Answer 18

2 canada post corporation

Question 19

An organization is required to comply with:

Answer 19

provincial/territorial and federal government legislation

Question 20

An objective of the payroll function is to:
- provide direct deposit
-pay employees accurately
-provide pay stubs
-provide cheques

Answer 20

pay employees accurately

Question 21

An employee works in a bookstore in Vancouver, British Columbia. What jurisdiction would the employee fall under for Employment Standards

Answer 21

British Columbia

Question 22

Which of the following is NOT one of the factors that the CRA uses to distinguish a contract of service from a contract for service:
- the amount of remuneration paid
-worker’s opportunity for profit
- level of control the payer has over the worker
- degree of financial risk taken by the worker

Answer 22

the amount of remuneration paid

Question 23

An employee reports to work at an automotive dealership located in Alberta What jurisdiction would the employee fall under for employment standards

Answer 23

Alberta

Question 24

Regulations determine:

Answer 24

how the rulers are to be applied

Question 25

All provinces and territories have exclusive authority over the laws regarding: - civil rights -employment standards -property rights - all of the above

Answer 25

all of the above

Question 26

Federal and provincial/territorial tax systems are based on the principe of:

Answer 26

self-assessment

Question 27

Where an employee-employer relationship exists, the employer must withhold:

Answer 27

CPP/QPP contributions employment insurance premiums income tax

Question 28

Which of the following industries and organizations is NOT covered under the Canada Labour Code Part 3 provisions concerning the working conditions of employees under federal jurisdiction: - a transportation company - CBC - Canada Post corporation - Shoppers Drug Mart

Answer 28

shoppers drug mart

Question 29

Pension providers and charities are considered to be what type of stakeholder of the payroll department?

Answer 29

external

Question 30

Canada Pension Plan rates generally change on the first of January of each year. This is an example of:

Answer 30

a regulation

Question 31

Employers, employees and other departments of an organization are examples of:

Answer 31

internal stakeholders

Question 32

A self-employed individual assumes a degree of financial risk under

Answer 32

a contract for service

Question 33

employment standards are rules legislated by each provincial/territorial or federal jurisdiction that dictate such issues as:

Answer 33

hours of work minimum wage overtime