BC Payroll

Question 1

What federal & provincial tax forms do new employees have to fill out?

Answer 1

A federal TD1 and a provincial TD1

Question 2

What is the overtime rate for working up to 12 hours in a day?

Answer 2

1.5 x the employee’s regular hourly rate

Question 3

What is the overtime rate for working over 12 hours in a day?

Answer 3

2 x the employee’s regular hourly rate

Question 4

What is the age range for withholding CPP contributions?

Answer 4

18-69

Question 5

At what age can you file an election to stop contributions to CPP?

Answer 5

Between 65-69

Question 6

2022 CPP max annual pensionable earnings

Answer 6

$64,900

Question 7

2022 CPP contribution rate

Answer 7

5.70%

Question 8

2022 CPP max contribution amount

Answer 8

$3,499.80

Question 9

2022 CPP exemption for annual pay periods

Answer 9

$3,500

Question 10

2022 CPP exemption for bi-weekly pay periods

Answer 10

$134.61

Question 11

Is there an age limit for EI premiums?

Answer 11

No

Question 12

2022 EI employee premium rate

Answer 12

1.58%

Question 13

2022 EI employer premium rate

Answer 13

1.4 x the employee premium

Question 14

2022 EI max insurable earnings

Answer 14

$60,300

Question 15

2022 EI max annual premiums

Answer 15

• employee = $952.74

- employer = $1,333.84

Question 16

Net taxable income formula

Answer 16

Gross pensionable/taxable income, minus:

• employee RPP contributions
• RRSP contributions
• union dues
• prescribed living zones
• CRA authorized deductions

Question 17

Calculate the pay period taxable benefit for group term life insurance

Answer 17

1. Employee coverage (salary x multiplier)
2. Monthly taxable benefit (coverage x premium rate / $1,000)
3. Pay period benefit (monthly taxable benefit x 12 / pay period frequency)

Question 18

Are extended health premiums a taxable benefit?

Answer 18

No

Question 19

Are CPP & EI withheld from death benefits?

Answer 19

No

Question 20

What method is used to calculate income tax on death benefits & what amount is exempt?

Answer 20

Lump-sum & the first $10,000 is exempt

Question 21

CRA accelerated threshold 2 remitter definiton

Answer 21

Employers w/average monthly withholdings > $100k

Question 22

CRA accelerated threshold 2 remitter schedule

Answer 22

• 3 business dats from the last day in each weekly period

Question 23

BC Employer Health Tax applies to non-profits with a payroll greater then

Answer 23

$1.5 million

Question 24

BC Employer Health Tax formula for non-profits with payroll over $1.5 mil

Answer 24

Assessable remuneration x 1.95 %

no exemption applies

Question 25

WCB premium over $1,500 pay their premiums when?

Answer 25

Quarterly on the 20th of the month FOLLOWING the quarter.

Question 26

Payroll Calculation Template

Answer 26

1. Determine gross earnings 2. Determine non-cash taxable benefits 3. CPP 4. EI 5. Federal income tax 6. Provincial income tax 7. Determine total deductions 8. Calculate net pay

Question 27

Are employer contributions to a RRSP a included in box 14, employment income?

Answer 27

Yes

Question 28

Are employers contributions to an RRSP pensionable income?

Answer 28

Yes

Question 29

Are employer contributions to a RRSP insurable income?

Answer 29

Yes

Question 30

What is the primary objective of the payroll function?

Answer 30

To pay employees accurately & on time, in compliance with legislative requirements, for a full annual payroll cycle.

Question 31

Define payroll

Answer 31

The process of paying employees in exchange for the services they perform.

Question 32

Who are government stake holders?

Answer 32

- federal | - provincial

Question 33

Who are internal stakeholders?

Answer 33

- employers - employees - other departments

Question 34

Who are external stakeholders?

Answer 34

- benefit carriers - courts - unions - pension providers - charities - 3rd party administrators - outsourced/software vendors

Question 35

BC minimum wage

Answer 35

15.20hr

Question 36

What are BC minimum daily hours if an employee is scheduled to work?

Answer 36

- 2 hrs | - 4 hours if they're scheduled for > 8hrs

Question 37

Qualifications for stat pay?

Answer 37

- Employed for 30 calendar days - Worked or earned wages (like paid vacation days or another statutory holiday) on 15 of the 30 days before a statutory holiday

Question 38

What are SINs starting with a 9 used for?

Answer 38

- non-citizens | - non permanent residents

Question 39

Do SINs starting with a 9 have an expiry date?

Answer 39

Yes.

Question 40

What method is used to deduct income tax from a retiring allowance?

Answer 40

Lump-sum

Question 41

If an employee turns 18 during the month, when do you start withholding CPP?

Answer 41

The first month FOLLOWING their birthday & you must prorate their max contributions.

Question 42

If an eligible employee completes an election to stop contributing to CPP, when do you stop withholdings?

Answer 42

The first pay of the month FOLLOWING the month you received the form.