Chapter 5 Flashcards
Labour Standards - Employment Standards
What are employment/labour standards?
legislated rules about working conditions
A Quebec resident employed in the broadcasting industry is working in Nova Scotia for 2 days. While in Nova Scotia, the employee will be governed by the employment/labour standards applicable to:
federal Canada Labour Code labour standards legislation
When would the terms of a union agreement take precedence over employment standards
When the terms and conditions in the contract at least meet the minimum standards
Which of the following does hours of work legislation cover?
1. averaging hours
2. compressed work week
3. call-in pay
4. all of the above
- all of the above
Which of the following is regulated by employment/labour standards
1. minimum amount that an employee is paid per hour of work
2. how much vacation time and money an employee is entitled to
3. employee entitlements upon termination
4. all of the above
- all of the above
an employee is working increased hours per day, but fewer days per week. This is referred to as:
a compressed work week
in which of the following situations would an employee NOT be entitled to receive severance pay under the Canada Labour Code Part 3?
1. employee retires in receipt of an actuarially unreduced pension
2. employee refuses to exercise seniority rights
3. employee is terminated for just cause
4. all of the above
- all of the above
As per labour/employment standards, what overtime rate is used across Canada?
as jurisdictions except for BC, pay at 1.5 times the employee’s regular rate or minimum wage
Which of the following does NOT establish the minimum age at which an individual can be employed?
employer’s discretion
How much time is an employee allowed off work in which to vote for Federal election?
3 consecutive hours during the time the polls are open
Sheila works for an organization in Nova Scotia. Which of the following would NOT be used to calculate her vacation pay?
1. call-in payment
2. night shift premium
3. commission payment
4. previously paid vacation pay
- previously paid vacation pay
An organization in Saskatchewan has established a compressed 40 hour work week. An employee at this organization works the following hours during the week: Monday - 9 hours; Tuesday - 11 hours; Wednesday - 11 hours; Thursday - 9 hours. How many hours of overtime will this employee be paid?
2 hours
an employer in Ontario, who wishes to have employees work more then the legislated maximum of 48 hours must
obtain written or electronic agreement from the employees
Ahmed has been working for 6 years with an organization in New Brunswick. How many weeks of vacation is he entitled to this year?
2 weeks
An employee in Manitoba is called in to work. He completes the job he is called in for in one hour. How much should this employee be paid?
3 hours at regular pay
Which of the following provinces observes Family Day?
Alberta, BC, Saskatchewan, new brunswick, ontario
Fawzia works for an organization in Saskatchewan. Which of the following would NOT be used to calculate her vacation pay?
clothing allowance
if a jurisdiction has both daily and weekly overtime thresholds, how is overtime paid?
using the daily or weekly overtime threshold, whichever is greater
an employee who has worked for an organization in New Brunswick for 5 years is resigning from his job. According to legislative requirements, what is the period of notice the employee should provide the employer with?
no notice is required
if an employee is working for a software company, which of the following scenarios is correct?
1. An employee who lives in Quebec and works in Quebec will be governed under the Canada Labour Code (CLC)
2. An employee who lives in Ontario and works in Quebec will be governed under Ontario employment standards
3.An employee who lives in Ontario and works in Quebec will be governed under the Canada Labour Code (CLC)
4. An employee who lives in Quebec and works in Ontario will be governed under Ontario employment standards
- An employee who lives in Quebec and works in Ontario will be governed under Ontario employment standards
Helga Jacobson is a member of a defined contribution pension plan. The plan defines the contribution as 5% of the employee’s pensionable earnings, with the employee’s contribution.
Helga’s pensionable earnings are $3,600 per month.
RPP contribution = 3,600 x 0.05
= 180
Both Helga and the employer will contribute 180 per month to the RPP. Helgas contribution will reduce the net taxable income
Carolyn Mills, an Alberta employee, has decided to enroll for optional life insurance coverage of $250,000.00. The coverage rate is $0.36/$1,000.00 per month. Calculate Carolyn’s monthly premium
Carolyn is paid on a bi-weekly basis, the pay period deduction is calculated as:
premium = coverage amount x rate
= 250,000 x 0.36 / 1,000
= 90
pay period deduction = monthly premium x 12/ pay period frequency
= 90 x 12 / 26
= 41.54
Jean Lafleur works for Jolicoeur Company in Ste-Anne, Québec. Jean earns $45,500.00 annually and is paid on a weekly basis. Jean is a unionized employee and pays 3% of base salary in union dues every pay period. calculate weekly salary amount and union dues
Salary = 45,500 / 52 = 875
union dues = 875 x 3% = 26.25
Jean earns $45,500.00 annually and is paid on a weekly basis.
Jolicoeur provides their employees with life insurance coverage of two times annual salary and pays 100% of the cost of the coverage. The life insurance premium rate is $0.75 per $1,000.00 of coverage per month; this rate does not include the 9% tax on insurance premiums.
group term life insurance
coverage = 45,500 x 2 = 91,000
monthly premium = 91,000 / 1000 x 0.75 = 68.25
monthly premium + quebec insurance tax = 68.25 x 1.09 = 74.39
weekly taxable benefit = 74.39 x 12 / 52 = 17.17
The employees pay 100% of the cost of their health and dental coverage; Jean’s monthly premiums for family health and dental coverage are $143.00 (inclusive of the 9% insurance tax).
monthly premium 143
weekly deduction = 143 x 12 / 52 = 33
Jean also voluntarily participates in a social club that costs $104.00 a year, deducted on a pay period basis.
104 / 52 = 2
Gina Marconi works for Unity Paper Products, in Alberta, as an accounting supervisor and
is paid an annual salary of $48,074.00 on a bi-weekly basis. The organization pays 50% of the cost of the employees’ group term life insurance coverage. The premium for Gina’s life insurance is $74.00 per month; 50% of the premium is included in income on a pay period basis. Gina is a member of the registered pension plan and contributes 5% of base salary to the plan each pay period and has also
pledged $20.00 per pay to United Way.
The claim Code on the federal and provincial TD1s is 1. Determine bi-weekly pay period values:
salary = 48,074 /26 = 1,849
life insurance =
monthly premiums = 74 x 50% = 37
taxable benefit = 37 x 12 /26 = 17.08
employee deductions = 37 x 12/26 = 17.08
employee pension plan contributions = pay period salary 1849 x 5% = 92.45
what is the priority that is used in this material for the stated deduction
1 . CPP/ QPP contribution
2. EI premiums’
3. Quebec Parental Insurance Plan premiums
4. Income taxes - federal and provincial
5. payroll taxes - northwest territories and Nunavut
6. legal deductions
7. union deductions
8. company- compulsory deductions
9. voluntary deductions
True of false. In most jurisdictions, and employer can terminate the employment of an employee for whom they have received a garnishment.
false. in most jurisdictions an employee is protected from dismissal because a garnishment against their wages has been served.
true or false in most jurisdictions the legislation will define the amounts that are exempt from garnishment
true
Provide the reason the following garnishments are issued and the issuing governing
body. Third Party Demand.
a third party demand is issued by CRA to recover overpaid EI benefits
Provide the reason the following garnishments are issued and the issuing governing body. Garnishment order
is issued by wither ministry or department of justice the attorney or solicitor general or the ministry of community or social services to collect a debt owed to a third party creditor.
Provide the reason the following garnishments are issued and the issuing governing body. Maintenance Order
a maintenance order is issued by either the ministry or deparnment of justice the attorney or solicitor general or the ministry of community or social services to collect child support and maintenance payments
Provide the reason the following garnishments are issued and the issuing governing body. Requirement to pay.
a requirement to pay is issued by either the CRA or RQ to collect unpaid income taxes and unpaid statutory deductions
which legal deduction would be taken first from an employee with multiple orders against them?
generally, a requirement to pay takes top priority over any other orders
besides deducting and remitting the amounts stated in the requirement to pay order what are an employers other responsibilities?
- an employer who fails to comply with the order is liable for the amount owing
- an employer must advise the CRA/RQ if no wages are owed to an employee for a given period
- an employer must notify the CRA/RQ if the employee’s employment is terminated
true or false third party garnishment orders are provincially regulated
true
true or false. A group RRSP must be registered with the federal government
true
What are the RRSP contribution limits based on?
unused room from prior years carried forward plus:
18% of the previous years earned income up to a maximum limit each year
less - a pension adjustment value reported for participating in an RPP
- past service pension adjustment values reported
plus- pension adjustment reversal values reported
what is the difference between a group insurance policy and an individual policy?
group insurance policy differs from an individual policy in that it is designed around classes of membership rather than specific individuals
true or false. employer-paid premiums for group term life insurance, medical, dental, vision, and accidental death and dismemberment coverage are non-cash taxable benefits in all jurisdictions
false. employer-paid premiums for group term life insurance, including spousal and dependent coverage, and accidental death and dismemberment are non-cash taxable benefits to the employee both deferally and in Quebec in Quebec only employer-paid premiums for medical dental and vision coverage are also non-cash taxable benefits
do you need an employees written consent to take legal deductions
no
do you need an employees written consent to take Quebec Parental Insurance plan premiums
no
do you need an employees written consent to take company-compulsory deductions
yes
do you need an employees written consent to take income taxes
no
do you need an employees written consent to take union dues
yes
do you need an employees written consent to take CPP/QPP contributions
no
do you need an employees written consent to take payroll taxes
no
do you need an employees written consent to take EI premiums
no
do you need an employees written consent to take voluntary deductions
yes
does legal deductions reduce the employees net taxable income
no
does RRSP reduce the employees net taxable income
yes
does voluntary deductions reduce the employees net taxable income
no
does income taxes reduce the employees net taxable income
no
does union dues non-quebec reduce the employees net taxable income
yes
does Quebec union dues reduce the employees net taxable income
no
does CPP/QPP reduce the employees net taxable income
no
does payroll taxes reduce the employees net taxable income
no
does EI premiums reduce the employees net taxable income
no
does registered pension plans reduce the employees net taxable income
yes
