Chapter 2

Question 1

What are the four categories of employment?

Answer 1

earnings, allowances, benefits and taxable expense reimbursements

Question 2

list 5methods an employer can use to pay earnings

Answer 2

1 - salary
2- a rate for each hour worked
3- a rate per piece of goods produced or picked
4- a disability payment for time off work due to illness
5- a payment for vacations time
6- premium pay for overtime hours worked
7- premium pay for hours worked on shift

Question 3

What are allowances? example

Answer 3

Allowances are additional dollar amounts paid to employees for the use, or anticipated use, of their personal property for the business purposes. The most common types of allowances cover the costs incurred by the employee for cars, meals, uniforms, safety shoes or other particular types of clothing for business reasons.

Question 4

What are benefits? Provide and example

Answer 4

Benefits are dollar value attributed to something the employer has either provided to an employee or paid for an employee’s behalf. A benefit could be a company leased automobile given to the employee for both business and personal use or group term life insurance premiums

Question 5

What are expense reimbursements?

Answer 5

dollar amounts paid to employees to cover expenses that they incurred while performing their job

Question 6

Which jurisdictions have employment standards legislation that requires that employees must receive their pay at least semi-monthly?

Answer 6

British Columbia, Manitoba, Newfoundland and Labrador, Nova Scotia, Saskatchewan and Yukon

Question 7

List the most common types of pay period frequencies

Answer 7

weekly - 52 pay periods
bi-weekly - 26 pay periods
semi-monthly - 24 pay periods
monthly - 12 pay periods

Question 8

What is the description for wages

Answer 8

earnings based on the amount of time worked usually at an hourly or daily rate

Question 9

what is the description for overtime pay

Answer 9

earnings paid for hours worked over the legislated standards

Question 10

whats a description of self-insured disability?

Answer 10

earnings paid to an employee who is absent from work due to illness or injury

Question 11

what is the descriptions of salary

Answer 11

a fixed amount of earnings paid to an employee per pay period

Question 12

what is the description of piecework?

Answer 12

a rate of pay earned per unit of production

Question 13

True or false. an employer-administered disability plan is commonly called a third party plan

Answer 13

false. an employer-administered disability plan is commonly called a self-insured plan

Question 14

what are the main types of disability coverage?

Answer 14

The main types of disability coverage are sick pay, short-term disability and long term disability plans

Question 15

true or false. paid sick leave is legislated in Quebec Saskatchewan and nova scotia

Answer 15

false. Paid sick leave is only legislated federally and in the provinces of BC and PEI and Quebec

Question 16

What are the payroll professionals responsibilities when the organization offers a disability plan?

Answer 16

For all disability plans, whether self-insured or covered by a third party, the payroll professional is responsible for accurately tracking plan participants and their pre-leave earnings to establish the amount of any possible disability benefits

Question 17

Bonita Franco works for Independent Trucking in Alberta. Pay is based on $23.50 per hour and 75 hours in this bi-weekly pay period.
Bonita’s Claim Codes on the federal and Alberta TD1 are 3.
Calculate Bonita’s net pay

Answer 17

1762.50

Question 18

Gilles Lemoine, a Québec employee, earns an annual salary of $54,000.00, paid on a
semi-monthly basis. Gilles has a TD1 claim Code 2 and a TP-1015.3-V deduction
Code B.

Answer 18

2,250

Question 19

Fadwa earns $1,400 bi weekly she has a bi-weekly taxable car allowance of $70 and a bi-weekly non-cash taxable benefit of $25. Union dues of $18 are deducted from each pay. Her TD1 and TD1AB forms have claim code 1. Calculate Fadwa’s net pay?

Answer 19

$1,065.60

Question 20

Which of the following types of payments is NOT considered a regular payments?

Answer 20

retroactive adjustment

Question 21

Gavin earns a bi-weekly salary of $1,291.85 Calculate his CPP contribution?

Answer 21

1291.85 - 134.61 x 5.95% = 68.86

Question 22

An error was made on Ivan’s pay. Overtime of $143 is to be paid on a separate cheque from his regular weekly pay. Calculate the CPP contribution on the overtime payment

Answer 22

143 x 5.95% = 8.51

Question 23

Alexis earns $1,250 bi weekly and works 35 hours each pay period. What is Alexis’ hourly rate of pay?

Answer 23

1,250 divided by 35 hours = 35.71

Question 24

The total of an employees earnings, taxable allowances, cash taxable benefits and non-cash taxable benefits is referred to as

Answer 24

pensionable earnings and gross taxable income

Question 25

Dale worked 43 hours per week and earns $16 per hour. The organizations policy states that overtime is payable at 1.5 times per hour after working 40 hours per week. What is the overtime pay for the week?

Answer 25

16 x 1.5 x 3 = $72

Question 26

Madeline earns $700 weekly plus $125 in overtime. Calculate Madeline’s Quebec parental insurance plan premium?

Answer 26

700 + 125 x 0.494% = $4.08

Question 27

krista earns $8.25 per baby blanket she embroiders in a weekly pay period This week she embroidered 62 blankets what are Krista’s earnings?

Answer 27

$511.50

Question 28

Shift premiums can be calculated as?

Answer 28

1- a percentage of the hourly rate per hour worked on shift
2- a fixed dollar amount per hour worked on the shift
3- a fixed dollar amount per shift worked

Question 29

Joanna earns $1,425 bi-weekly and works 48 hours per pay period. Calculate Joanna’s hourly rate of pay?

Answer 29

$29.68

Question 30

approximately 70% of employers use third parties for?

Answer 30

short term disability coverage

Question 31

an amount paid over and above an employee’s normal salary or hourly rate for working on an evening or midnight shift is known as?

Answer 31

shift premium

Question 32

What is an example is NOT a type of regular earnings?

Answer 32

life insurance premiums

Question 33

Ahmad earns $750 per week. He was a non-cash taxable benefit of $25 per week. What is Ahmad’s gross earnings for the week?

Answer 33

$750

Question 34

What type of deductions CANNOT be calculated using payroll deduction tables when a payment is made on a separate cheque from and employee’s regular pay?

Answer 34

CPP contributions

Question 35

Tammy receives an annual salary of $42,500 calculate her bi-weekly salary

Answer 35

$1,634.61

Question 36

Julie works the evening shift and is paid 3% of her hourly rate as a shift premium. She worked 37.5 hours this week and is paid $18 per hour. Calculate her gross taxable earnings (GTE) for this pay.

Answer 36

695.25
18 x 37.5 + 18 x 37.5 x 3%

Question 37

If the long term disability benefit payment is paid directly by the employer, the benefit payment may be subject to:

Answer 37

• CPP/QPP
• EI premiums
  -QPIP premiums
• federal and provincial income taxes

Question 38

dollar amounts paid to employees to cover expenses that they incur while performing their jobs are:

Answer 38

expense reimbursements

Question 39

is an employee is paid semi-monthly, how many pay periods are there per year?

Answer 39

24

Question 40

Elda works for a Manitoba employer and was paid a retroactive payment of $200 on a separate cheque. Calculate her EI premium.

Answer 40

200 x 1.66% = 3.32

Question 41

an amount paid over and above an employee’s normal salary or hourly rate for working on an evening or midnight shift is known as:

Answer 41

a shift premium

Question 42

Great White pays employees $15 per hour and an additional $0.85 for each hour they work on the evening shift. renny worked 80 hours on the evening shift this pay period. Calculate his premium for the pay period.

Answer 42

68
0.85 x 80

Question 43

Juliet earns $5 per shirt she embroiders in a weekly pay period. This week, she embroidered 75 shirts. Calculate Juliets earnings

Answer 43

5 x 75 = 375

Question 44

Owen works in Yellowknife Northwest territories, and earns $2,550 semi monthly. Calculate Owen’s Northwest Territories Payroll Tax.

Answer 44

51
= 2550 x 2%

Question 45

Gavin earns a bi-weekly salary of $1291.85. Calculate his first CPP contribution.

Answer 45

68.85
= 1291.85 - 134.61 x 5.95%

Question 46

The total of an employees earnings, taxable allowances and taxable benefits, less any deductions allowed by CRA or QR is referred to as

Answer 46

net taxable income

Question 47

Blue Man Company pays their employees every week. This is considered what type of payment?

Answer 47

regular payments

Question 48

ethan works for a Nunavut employer and receives a monthly salary of $3052.49. Calculate Ethan’s EI premium.

Answer 48

50.67
= 3052.49 x 1.66%

Question 49

if an employee in Alberta is paid for one week of vacation time, what percentage of their vacationable earnings will they receive?

Answer 49

2%

Question 50

Which of the following is NOT a type of regular earning?
1. self-insured disability payments
2. hourly wages
3. life insurance premiums
4. vacation pay

Answer 50

3. life insurance premiums

Question 51

An employee is paid $500 to cover the cost of personal living expenses associated with their employment. This is an example of:

Answer 51

an allowance

Question 52

all the following are insurable earnings, except:
1. life insurance premiums
2. taxable allowances
3. salaries and wages
4. cash taxable benefits

Answer 52

1. life insurance premiums