Chapter 1 Flashcards
What does the employee’s signature on an offer letter provide to the employer?
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
What types of documents are typically included in a commencement package
-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
Name forms that are commonly included in a commencement package
- authorization for hiring
- direct deposit agreement
- a union membership application
- confidentiality agreement
- benefits enrolment
What is the payroll department’s responsibility when accepting an authorization for hiring form?
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
when hiring an individual with a 900-series SIN what document must an employer verify?
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
True or false. Union dues can be deducted from an employee’s pay without their consent
false. New employees sign a union membership form or application authorizing the deduction for union dues.
what does an employer need in order to deduct benefit premiums from an employee’s pay?
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
what does payroll use the information provided on the personal tax credits return- TD1 and the source deductions return - TP-1015.3 - V for?
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
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
- all of the above
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.
Ontario, Quebec
true or false new employees must complete a federal personal tax credits return -TD1 even if they are only claiming the basic personal amount
true. The federal personal tax credits return - TD1 must be competed by new employees and given to their employer
true or false employers must send completed TD1 forms to the government
false the employer should keep the completed forms with the employee’s records they are not sent to the government
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
an employee has a valid 900-series Social Insurance Number
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
- Federal Personal Tax Credits Returns - TD1
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:
T1213
A confidentiality agreement is most common for employment in which occupations?
computer and Internet companies
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?
an authorization for hiring form
The Source Deductions Return- TP-1015.3-V is a :
Quebec provincial tax form
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:
they are claiming the credit for children under the age of 18 in Saskatchewan
legislation that required employers to obtain an employee’s consent before collecting personal information is called:
privacy legislation
The TP-1015.3-V form is filled out by employee who work in:
Quebec
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
- employee signature on an offer of employment
when signing a confidentiality agreement, an employee:
- 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
the employer does NOT need to collect employee’s signature for:
statutory deductions
a letter of authority from the CRA or RQ is required to reduce personal income tax deductions in which of the following situations?
an employee has excess tax deductions because of living in one province/territory and working for an employer located in another province
what is the main objective of a commencement package?
collect employee information
The Deduction for Living in a Prescribed Zone would NOT be applicable to residents of:
Nova Scotia
An employee whose total income from all employers will be less than the total credits claimed on the TD1 will:
not have income tax withheld
