Chapter 2

Question 1

What are the three main programs specifically related to payroll that the CRA administers?

Answer 1

Canada pension Plan
Employment Insurance
Income tax

Question 2

If an organization deducts $27,400 in CPP contributions from its employees and $21,200 in EI premiums, hour much would have to be remitted in total to the CRA?

Answer 2

CPP = 54,800 (employee - 27,400 employer - 27,400)
EI = 50,880 ( employee - 21,200 employer - 29,680)
total employee - 48,600
total employer - 57,080
total remitted - 105,680

Question 3

True or False: the CRA collects provincial/territorial income taxes for all provinces and territories

Answer 3

false - CRA does not collect Quebec provincial income tax

Question 4

true or false : Quebec employees see two separate income tax withholdings on their pay statements

Answer 4

true

Question 5

true of false: the emphasis on the EI program is on paying people so they do not have to return to work

Answer 5

false - the purpose is to provide income support during a temporary interruption of earnings with an emphasis on returning the unemployed to the labour force as quickly as possible

Question 6

what department or agency is responsible for: an employer is preparing the budget for the next year and wants to know the annual maximum insurable earnings amount

Answer 6

employment and social development Canada

Question 7

what department or agency is responsible for: an employee wants to retire and apply for CPP benefits

Answer 7

Service Canada

Question 8

what department or agency is responsible for: there is a new type of earning in the new collective agreement. You are not sure if it is insurable

Answer 8

CRA

Question 9

what department or agency is responsible for: the organization would like to apply for a reduction in its EI premium rate

Answer 9

Service Canada

Question 10

How does the Personal Information Protection and Electronics Documents Act legislation affect the handling of employee personal information

Answer 10

sets limits on the collection use or disclosure of employee personal information for federally regulated organizations as well as in the course of any commercial activity within a province that does not have its own privacy legislation

Question 11

when was the personal information protection and electronics documents act legislation in effect for private sector employers in provinces that do not have privacy legislation

Answer 11

January 1st, 2004

Question 12

which provinces have their own private sector privacy laws similar to PIPEDA that deal with employee personal information

Answer 12

Alberta, BC and Quebec

Question 13

Which agency administers Job Creation progrms?

Answer 13

Employment and Social Development Canada

Question 14

Which of the following does the Personal Information Protection and Electronic Documents Act NOT apply to in regards to personal information in the course of any commercial activity within a province that does not have its own privacy legislation?
- collection
- disclosure
- presentation
- use

Answer 14

• presentation

Question 15

Which agency is responsible for the administration of EI programs to individuals including regular, parental, sickness, seasonal, and compassionate care benefits?

Answer 15

Service Canada

Question 16

The purpose of the Canadian Human Rights Act is to:

Answer 16

administer the principle that all individuals should have equal opportunity with other to make for themselves the lives that they are able and wish to have

Question 17

The federal government collects federal and provincial/ territorial income tax for:

Answer 17

all provinces and territories in Canada except Quebec

Question 18

The Canada Pension Plan is a pension program designed to provide:

Answer 18

death benefits
retirement and disability benefits
supplementary benefits to a surviving spouse, orphans and children of disabled contributors

Question 19

Privacy laws in Canada currently only cover the employment information of workers who are federally regulated or who are located in one of the three provinces with provincial laws:

Answer 19

Alberta
BC
Quebec

Question 20

To keep pace with increases in average income and the cost of living, Employment and Social Development Canada reviews the ceiling on insurable earnings:

Answer 20

annually

Question 22

Which government agency is responsible for the establishment of annual maximum insurable earnings?

Answer 22

Employment and Social Development Canada

Question 23

Which government agency is responsible for determining how many hours an insured person has in insurable employment?

Answer 23

Canada Revenue Agency (CRA)

Question 24

Which Canadian province/territory has NOT entered into a tax collection agreement with the federal government?

Answer 24

Quebec

Question 25

An employee’s Employment Insurance premium is $32.50. If the employer does not qualify for a reduced EI rate, what is the total employee and employer EI to be remitted to the CRA?

Answer 25

= 78
32.50 x 1.4 + 32.50

Question 26

Which agency is responsible for the delivery of services to employers including electronic Record of Employment?

Answer 26

Service Canada

Question 27

What is Canada Revenue Agency’s mandate?

Answer 27

1. to administer tax laws
2. to collect revenues for the federal government and most of the provinces and territories
3. to deliver various economic benefit incentive programs to Canadians

Question 28

Service Canada is responsible for the administration of which of the following?

Answer 28

Canada Pension Plan benefits

Question 29

Social Insurance Numbers beginning with a 9 are issued to individuals who are:

Answer 29

neither Canadian citizens nor permanent residents

Question 30

The CRA charges interest on any unpaid:

Answer 30

remittances and unpaid penalties from the day the payment was due

Question 31

With the exception of Quebec which of the following is the first deduction to be withheld from an employees pay?

Answer 31

CPP contributions

Question 32

The Payroll Professional at ABC Company receives a call from the CRA requesting an employee’s information related to earnings and withholdings for the last six months. Does the Payroll Professional have to obtain the employee’s permission to provide the information to the CRA?

Answer 32

no

Question 33

With respect to EI what is the CRA NOT responsible for?
1. deciding which types of remuneration are insurable
2. administration of the EI premium reduction program
3. collection of employer premiums
4. collection of employee premiums

Answer 33

administration of the EI premium Reduction Program