exam practice Flashcards
When a non-regular payment of pensionable employment income is made, the method used to calculate the Canada/Quebec Pension Plan contributions is based on:
whether the non-regular payment is combined with the regular salary or wages, or paid separately
A paper Record of Employment must be issued within five calendar days in which of the following situations?
-the employee did not work for a period of 30 calendar days
- the employee is no longer on the employer’s active employment list
- the record of employment is requested by the employee and an interruption of earnings has occurred
How many periods will be used to calculate the total insurable hours in Block 15A on an employee’s ROE if the employee is paid monthly?
last 13 pay periods (or less if period of employment is shorter)
Which is NOT a voluntary deduction
1. social club deductions
2. union dues
3. united way donation
4. none of the above
- union dues
Lori is NOT an employee of an organization in Ontario, but is paid a director’s fee of $1,000 for the year. Hey TD1 code federally and provincially is the basic amount. Calculate the income tax on the directors’ fee.
no withholding required
What is the 2023 weekly exemption for Canada Pension Plan contributions?
$67.30
An employer is exempt from the requirement to issue a ROE within five days of the interruption of earnings in which of the following situations?
Special arrangements are made with Service Canada where a large number of employees are laid off
In order to determine the amount of the Employment Insurance benefit and how long an individual can collect the benefit, Service Canada will require an individual’s:
insurable earnings and insurable hours
All of the following are insurable earnings, EXCEPT:
1. cash taxable benefits
2. life insurance premiums
3. taxable allowances
4. salaries and wages
- life insurance premiums
Dollar amounts the employer pays for the work an employee performs are:
earnings
Deidra is due to receive a work-related bonus of $2,500. This bonus will be paid separately from her regular bi-weekly salary of $1,800. Calculate Deidre’s CPP contribution on the bonus. She will not reach the annual maximum CPP contribution with this payment
$148.75
2500 x 5.95%
under which of the following conditions must a ROE be issued
- when earnings fall below 60% of regular weekly earnings due to illness, injury, quarantine, or pregnancy
- when requested by service canada
- when the pay period frequency changes
- all of the above
all of the above
When calculating income tax on death benefits, what is the exemption, if any?
first $10,000
On July 15, 2023, Stephen received his annual bonus. What type of payment is this?
non-regular
a death benefit is usually paid as a lump-sum amount to:
either a beneficiary or the estate of the deceased employee
Kristina earns $1,400 bi-weekly. She has a taxable car allowance of $70 and a non-cash taxable benefit of $25 per pay. Union dues of $18 are deducted from each pay.
$1,495
1,400+70+25
Gwen is being terminated without working notice. In which province does the length of employment for the calculation of severance pay include the legislated wages in lieu of notice period?
Ontario
Dave is on the Board of Directors for the LogRight Company in British Columbia. Calculate the CPP contribution on his director’s fee payment of $15,000 which is paid quarterly.
$840.44
Reva is an employee in Alberta who earns $1,800 bi-weekly. This pay period she is receiving a bonus of $300 to be paid on the same cheques as the regular bi-weekly pay. Calculate the CPP contribution for the pay period. Reva will not reach the annual maximum contribution with this payment.
$116.94
1800+300 -134.61 x 5.95%
Alice works as a salesperson who is paid irregularly and solely on commission. In the past 52 weeks she has earned total commissions of $78,039. Upon termination she also received outstanding vacation pay of $2,527. Calculate Alice’s insurable earnings to be reported in Block 15B on her ROE.
43,047.25
78039 / 52 x 27 +2527
Which of the following is NOT considered a condition to determine if a car allowance is reasonable by both the CRA and RQ?
1. the employer does not reimburse the employee for expenses related to the same use of the vehicle
2. the allowance is based solely on business kilometres
3. the amount provided is based on government-prescribed reasonable guidelines
4. the allowance is based on the equal amount of business kilometres to personal kilometres
- the allowance is based on the equal amount of business kilometres to personal kilometres
What type of garnishment would be issued for the collection of unpaid federal income taxes and unpaid federal statutory deductions?
requirement to pay
Scott McMann quit his job where he had worked for the seven years. He was paid semi-monthly with a regular work week of 37.5 hours. Scott worked an additional 20 hours overtime in the last month. How many insurable hours would be reported in block 15A of the ROE
2052
37.5 x 52 / 24 =81.25 x 25= 2031.25 +20 rounded to 2052
Ahmad earns $750 per week. He has a non-cash taxable benefit of $25 per week. Calculate the gross earnings for the week?
750
Simone is paid $900 weekly. In May she received a bonus of $1000 for meeting her previous year’s targets. In August she received another bonus of $1000. She has filed TD1 and TD1AB forms with claim code 1. Calculate the income taxes on the August bonus payment.
338
A reasonable car allowance is:
non-taxable and excluded from income
Liz earned $225 in overtime this pay period that will be paid on a separate cheque from her regular salary. calculate liz’s CPP contribution on the overtime payment.
13.38
225 x 5.95%
Karen has a company-leased automobile available to her for 135 says in the year. Calculate the availability period
4
135 / 30 round to the whole
The TD1X form should be completed
1. on or before January 31 each year
2. within one month after starting employment with a new employer
3. when there has been a substantial change to the amounts previously reported on the TD1X
4. all of the above
- all of the above
legislation that requires employers to obtain an employee’s consent before collection personal information is called:
privacy legislation
Julia is a commissioned salesperson who sells cameras and is paid $2,000 for each camera she sells. What is the name of this method of calculating commissions?
fixed amount per sale
Which of the following determines the length of any notice period that must be given to the employee as well as any payments due on termination?
Employment/Labour Standards
Jean-Claude is receiving a retroactive adjustment on his monthly pay due to paperwork being delayed. Jean-Claude’s total retroactive adjustment is 832.40 that will be paid together on the same cheque with his new monthly salary of 3,221.24 calculate Jean-Claude’s Quebec EI premium for this pay. He will not reach the annual maximum premium with this payment
51.48
832.4 + 3221.24 x 1.27%
retiring allowances are taxed using:
lump-sum tax rates
Marilyn has worked in insurable employment for 36 weeks prior to her termination. Her employer produces paper ROE. What is her employer encouraged to do to reduce the need for follow-up after the ROE is submitted to Service Canada?
attach a worksheet to the ROE with the details of weeks 28 to 36
Fred Green was terminated from his job after three years. He was paid a weekly salary of $1250. With his final pay, he was also paid outstanding vacation pay of $500 and legislated wages in lieu of notice of $3750. Calculate the total insurable earnings to be reported in Block 15B of the ROE
38,000
1250 x 27 + 500 + 3750
An example of a retirement plan would be a:
1. defined benefit pension plan
2. defined contribution pension plan
3. group RRSP
4. all of the above
- all of the above
Stephanie is paid regular bi-weekly earnings of $1125. This pay she will also receive her commission payment of $345. Calculate Stephanie’s CPP contribution for this pay.
79.46
1125 + 345 - 134.61 x 5.95%
Sandy’s Super-Mart provides group term life insurance, health and dental and short and long term disability coverage to their employees but they don’t have a pension plan. Sandy’s Super-Mart is terminating Vishal Patel but offering to continue his heath and dental coverage. The employee- employer relationship has been severed.
true
availability is one factor in calculating the standby charge for the automobile taxable benefit. Which of the following is a true statement?
availability is the number of 30 day periods the company car is available to the employee in the current taxation year
In Alberta which of the following earnings are included in the calculation of vacation pay upon terminatin?
retroactive pay
Joseph King’s employment was terminated on May 2 2023 due to restructuring. In addition to his regular wages he was paid a bonus of $5,000 where would the bonus be reported on the ROE
Blocks 15B, 15C PP1 and 17C
Marek is employed in Manitoba and has received a $750 set of golf clubs from his employer in recognition of his 50th birthday. What is the value of the non-cash taxable benefit that will be included in Marek’s income?
250
total cost of the gift exceeded 500
750 - 500
The deduction for living in a prescribed zone can be claimed by residents of which jurisdictions
northwest territories, nunavut and yukon
Gavin earns a bi-weekly salary of 1291.85 calculate his CPP contribution
68.86
1291.85 - 134.61 x 5.95%
Lafleur Plumbing Company in Montreal pays the premiums for a private health insurance plan that covers employees dental and prescription costs the premiums plus applicable taxes are considered
a non- cash taxable benefit
Income tax withholdings on a vacation payments with no time taken are calculated using which government prescribed method
bonus tax method
an interruption of earnings occurs when an employee
1. earns less than 60% of their normal weekly earnings due to illness
2. has seven consecutive calendar days without work or insurable earnings
3. quits their job
4. all of the above
- all of the above
which of the following payments are NOT considered insurable earnings
1. severance pay
2. vacation pay
3. car allowance
4. bonus
- severance pay
the contract of the unionized employees of the Bright Warehouse expired on May 31, 2023. Negotiations were NOT finished until Sept 16 when the contract was ratified. The negotiated pay increases are going to be paid in the last pay period of Sept what method would be used to calculate the income taxes on the increases?
retroactive tax method
what is the annual employment insurance premiums maximum for an alberta employee?
1002.45
61,500 x 1.63%
which type of earnings would NOT be insurable for hours on the ROE?
1. housing, board and lodging allowances
2. shift premiums
3. supplemental unemployment benefits
4. all of the above
all of the above
Sandra works in Manitoba for an employer who provides all employees with an option to purchase additional life insurance coverage at a monthly rate of $0.29 per $1,000.00 of insurance coverage. Sandra has enrolled for $175,000.00 of coverage. Calculate Sandra’s weekly payroll deduction.
Manitoba sales tax is 7%.
12.53
175000 x 0.29 / 1000 x 1.07 = 54.30 x 12 =651.63 / 52
Wilmer, who began working for his employer in September of 1999, has resigned. Wilmer worked 76.5 hours bi-weekly. He is going to work until the end of the current pay cycle. Calculate Wilmer’s total insurable hours for Block 15A of the Record of Employment.
2066
76.5 x 27 = rounded
An organization in Québec is paying a $14,500.00 death benefit to the wife of an employee who recently passed away. The required income tax withholdings are:
federal income tax of $225 + Quebec income tax of $675
Teresa drove a company car 15,000 personal kilometres in 2023. The total kilometres driven for the year were 25,000 kilometres. The actual operating costs for this automobile were $868.00, including taxes. What would Teresa’s portion of these operating costs be if she was going to reimburse the organization?
520.80
15000 / 25000 x $868 =
Stephan’s employer in Sherbrooke Quebec pays $325 including all applicable taxes to the parking garage for monthly parking fees for all employees working at their facility calculate the bi-weekly pay period non-cash taxable benefit
150
325 x 12 / 26
