Chapter 1

Question 1

What does the employee’s signature on an offer letter provide to the employer?

Answer 1

When an employee signs an offer of employment, they implicitly provide consent for the employer to collect and use information reasonable required for employment purposes. When the offer letter clearly states that the organization will be collecting, using and disclosing employee information required by government agencies, pension plan administrators, and benefit carriers, the employee’s signature would provide express consent

Question 2

What types of documents are typically included in a commencement package

Answer 2

-organization-specific forms, such as personal information forms
-government forms such as the federal and provincial/territorial personal tax credits return - TD1 and source deductions return - TP-1015.3-V in Quebec
- benefits forms such as insurance enrolment forms

Question 3

Name forms that are commonly included in a commencement package

Answer 3

• authorization for hiring
• direct deposit agreement
• a union membership application
• confidentiality agreement
• benefits enrolment

Question 4

What is the payroll department’s responsibility when accepting an authorization for hiring form?

Answer 4

the payroll department must know who within the organization has the responsibility and authority to hire and only accept those forms signed by an authorized individual

Question 5

when hiring an individual with a 900-series SIN what document must an employer verify?

Answer 5

employers hiring an individual with a 900-eries SIN must ensure that the documentation has a valid date that the work permit is valid and that all terms and conditions of the permit are being followed

Question 6

True or false. Union dues can be deducted from an employee’s pay without their consent

Answer 6

false. New employees sign a union membership form or application authorizing the deduction for union dues.

Question 7

what does an employer need in order to deduct benefit premiums from an employee’s pay?

Answer 7

an emplyer needs the employee’s written authorization to deduct premiums from an employee’s pay. the employees; signature on the benefit enrollment forms authorizes the deductions

Question 8

what does payroll use the information provided on the personal tax credits return- TD1 and the source deductions return - TP-1015.3 - V for?

Answer 8

payroll uses the information provided on the TD1 and the TP-1015.3 - V to determine the amount of federal and provincial/territorial income tax to deduct from an employee’s income

Question 9

The worksheet for the personal tax credits return TD1-WS is used to calculate partial claim amounts for:
1. estimated annual income of $165,430 or more
2. ages
3. canada caregiver amount fro eligible dependant or spouse or common-law partner
4. canada caregiver amount for dependants age 18 or older
5. all of the above

Answer 9

5. all of the above

Question 10

An employee, who lives in Québec and reports to work at an employer’s permanent
establishment in Ontario, will have income tax deducted based on _________ income
tax rates and when filing their income tax return, will be subject to _________ income
tax rates.

Answer 10

Ontario, Quebec

Question 11

true or false new employees must complete a federal personal tax credits return -TD1 even if they are only claiming the basic personal amount

Answer 11

true. The federal personal tax credits return - TD1 must be competed by new employees and given to their employer

Question 12

true or false employers must send completed TD1 forms to the government

Answer 12

false the employer should keep the completed forms with the employee’s records they are not sent to the government

Question 13

in which situation would an employee be required to have a valid work permit?
- an employee has a 900-series SIN with no expiry date
- an employee has a valid 900 - series SIN
- an employee will be working outside of Canada
- an employee does not have a SIN

Answer 13

an employee has a valid 900-series Social Insurance Number

Question 14

which of the following is NOT an internal company form?
1 Federal Personal Tax Credits Returns - TD1
2. direct deposit agreement
3. confidentiality agreement
4. authorization for hiring

Answer 14

1. Federal Personal Tax Credits Returns - TD1

Question 15

In order to receive a reduction a reduction in federal income tax deductions and provincial income tax deductions outside of Quebec, employees must apply to the Canada Revenue Agency for a reduction using the form:

Answer 15

T1213

Question 16

A confidentiality agreement is most common for employment in which occupations?

Answer 16

computer and Internet companies

Question 17

what form could be used by a payroll department to verify the authenticity of a new employee to be set up on the payroll system?

Answer 17

an authorization for hiring form

Question 18

The Source Deductions Return- TP-1015.3-V is a :

Answer 18

Quebec provincial tax form

Question 19

Employees outside of Quebec, who are only claiming the basic personal credit amount on the federal TD1 are not required to complete a provincial/territorial form as they will only be eligible to receive the basic personal provincial/territorial credit amount, UNLESS:

Answer 19

they are claiming the credit for children under the age of 18 in Saskatchewan

Question 20

legislation that required employers to obtain an employee’s consent before collecting personal information is called:

Answer 20

privacy legislation

Question 21

The TP-1015.3-V form is filled out by employee who work in:

Answer 21

Quebec

Question 22

which of the following provides an employer with the employee’s implicit consent to collect personal information?
1. employee signature on an offer of employment
2. employee signature on federal and provincial/territorial TD1 forms
3. a signed authorization to hire form
4. all of the above

Answer 22

1. employee signature on an offer of employment

Question 23

when signing a confidentiality agreement, an employee:

Answer 23

• undertakes not to disclose to any third party commercially sensitive information belonging to the employer
• undertakes to respect the agreement during the period of employment
• can commit to respect the agreement beyond the term of employment

Question 24

the employer does NOT need to collect employee’s signature for:

Answer 24

statutory deductions

Question 25

a letter of authority from the CRA or RQ is required to reduce personal income tax deductions in which of the following situations?

Answer 25

an employee has excess tax deductions because of living in one province/territory and working for an employer located in another province

Question 26

what is the main objective of a commencement package?

Answer 26

collect employee information

Question 27

The Deduction for Living in a Prescribed Zone would NOT be applicable to residents of:

Answer 27

Nova Scotia

Question 28

An employee whose total income from all employers will be less than the total credits claimed on the TD1 will:

Answer 28

not have income tax withheld