Chapter 1

Question 1

Social Insurance Number

Answer 1

Employee’s “account number” to communicate with Canada Revenue Agency and Service Canada.
It is comprised of 9 digits - if the first number starts with a nine – this indicates that it is a temporary number and has an expiry date.

It must be shown within 3 days of beginning work or you are considered not legal to work in Canada.

Must be used only for payroll purposes and treated as confidential.

Question 2

Employment Status

Answer 2

Certain factors have to be considered when determining if a worker is an employee or a self-employed individual.

Consists of 2 steps

Question 3

Employment Status Step 1

Answer 3

Establish what the intent was when the worker and the payer entered into the working arrangement

Question 4

Contract of Service

Answer 4

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

Question 5

Contract for Service:

Answer 5

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

or

A person who carries out a contact for service may be considered a contact worker, a self-employed person or an independent contractor.

Question 6

Are you an employer?

If you compensate a worker for services performed you may be an employer based on SEVEN tests:

Answer 6

Amount of control over a worker’s actions.
Who provides the necessary tools.
Option to hire assistants or to sub-contract work
Degree of personal financial risk
If the worker has responsibility for investment
If there is a chance of profit or risk of loss to worker.
The amount of integration of the worker into the organization.

Question 7

Federal or Provincial Jurisdiction?

Answer 7

If you are an employer, then you need to understand if you must follow the Canada Labour Code or provincial Employment Standards.

Industries are specifically identified under federal jurisdiction. Those not defined as federal will need to follow provincial jurisdiction

Question 8

Jurisdiction

Answer 8

Federal Jurisdiction applies to:
industries and undertakings of inter-provincial/territorial nature
organizations whose operations have been declared for the general advantage of Canada or two or more provinces

Question 9

Federal Industries

Answer 9

Air transportation, airports, airlines
Banks
Federal Crown Corporations
Grain elevators, feed and seed mills
Radio and television broadcasting
Railway and road transportation crossing borders
Telephone, telegraph and cable systems
Uranium mining and processing.

Question 10

Canada Labour Code

Answer 10

Is legislation that consolidates certain statutes respecting labour – including industrial relations, occupational health and safety and employment standards.

Question 11

Jurisdiction (2)

Answer 11

Employers must follow the employment standards legislated by the jurisdiction in which their employees work, unless they are governed by the federal labour standards

Question 12

Provincial Employment Standards

Answer 12

All laws regarding property and civil rights, which give the provinces the authority to enact legislation to establish employment standards for working conditions, such as hours of work and minimum wage.

Question 13

What is a Stakeholder?

Answer 13

Individuals, groups and agencies, both internal and external to the organization who share an interest in the function and output of the payroll department.

Question 14

Stakeholders can be considered ________

Answer 14

customers of the payroll department and payroll administrators can take a proactive customer service approach to serve these individuals and groups.