Chapter 1 Flashcards
Payroll and Its Compliance Environment
What is the primary objective of the payroll department?
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
List 4 definitions of payroll
- the department that administers the payroll
- the total number of people employed by an organization
- the wages and salaries paid out in a year
- a list of employees to be paid and the amount due to each
list the 3 typers of payroll management stakeholders and provide an example of each
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)
which jurisdiction does employees of Canada Post fall under
federal jurisdiction
which jurisdiction do employees if insurance companies fall under
provincial/territorial jurisdiction
which jurisdiction does a uranium mining company fall under
federal jurisdiction
which jurisdiction does the Canadian Broadcasting Corporation fall under
federal jurisdiction
retail department stores with locations in every province fall under what jurisdiction?
provincial/ territorial jurisdiction
chartered bank employees fall under which jurisdiction?
federal jurisdiction
explain the difference between legislation and regulation?
legislation determines what the rules are, while regulations determine how the rules are to be applied.
What are examples of sources that could be used to keep up to-date on payroll compliance changes?
- 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
List external stakeholders?
- benefit carriers
-Courts and the CRA - Unions
- Pension Providers
- Charities
- Third party administrators
- outsource/software vendors
What is the difference between a contract of service and a contract for service?
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
What are the factors that the CRA considers when determining if a contract of service or a contract for service exists?
- 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
effective payroll practitioners should be
1. conscientious
2. discreet
3. trustworthy
4. all of the above
4 all of the above
The Canada Labour Code consists of:
employment standards
industrial relations
occupational health and safety
The process of paying employees in exchange for the services they perform is referred to as:
payroll
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
2 canada post corporation
An organization is required to comply with:
provincial/territorial and federal government legislation
An objective of the payroll function is to:
- provide direct deposit
-pay employees accurately
-provide pay stubs
-provide cheques
pay employees accurately
An employee works in a bookstore in Vancouver, British Columbia. What jurisdiction would the employee fall under for Employment Standards
British Columbia
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
the amount of remuneration paid
An employee reports to work at an automotive dealership located in Alberta What jurisdiction would the employee fall under for employment standards
Alberta
Regulations determine:
how the rulers are to be applied
All provinces and territories have exclusive authority over the laws regarding:
- civil rights
-employment standards
-property rights
- all of the above
all of the above
Federal and provincial/territorial tax systems are based on the principe of:
self-assessment
Where an employee-employer relationship exists, the employer must withhold:
CPP/QPP contributions
employment insurance premiums
income tax
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
shoppers drug mart
Pension providers and charities are considered to be what type of stakeholder of the payroll department?
external
Canada Pension Plan rates generally change on the first of January of each year. This is an example of:
a regulation
Employers, employees and other departments of an organization are examples of:
internal stakeholders
A self-employed individual assumes a degree of financial risk under
a contract for service
employment standards are rules legislated by each provincial/territorial or federal jurisdiction that dictate such issues as:
hours of work
minimum wage
overtime
