PF2 Mid-term Flashcards
Who are statutory deductions held in trust for?
The receiver general.
Quarterly remitter
- Employers w/monthly remittance < $1000 & perfect remittance history
- employers w/average monthly withholdings < $3000
Regular remitter
Employers w/average monthly withholdings of $3,000-24,999.99
Accelerated threshold 1 remitter
Employers w/average monthly withholdings $25,000-99,999.99
Accelerated threshold 2
Employers w/average monthly withholdings over $100,000
Quarterly remitter schedule
- 1st qtr is April 15th
- 2nd qtr is July 15th
- 3rd qtr is Oct 15th
- 4th qtr is Jan 15th (following year)
Regular remitter schedule
15th of the following month
Accelerated threshold 1 remitter schedule
- 1st-15th is 25th is due 25th of same month
- 16th to end of month is 10th of following month
Accelerated threshold 2 remitter schedule
3 business days from last day of each weekly period
1st-7th
8th-14th
15th-21st
22nd-end of month
CRA remittance penalties
- 3% if <= 3 days
- 5% for 4-5 days
- 7% for 6-7 days
- 10% if => 8 days
Who are CPP, EI & income taxes remitter to
CRA (Quebec is RQ)
What’s a pension adjustment
The measure of the benefit that an individual earns in a year in regular registered pension plan or deferred profit sharing plan.
True or false, The pension adjustment reduces the amount individuals can contribute to their RRSP in the following year.
True
What’s the benefit entitlement?
The portion of a members pension thats considered to have accrued during the year.
2021 maximum benefit entitlement limit
3,245.56
Pension adjustment formula for defined benefit pension plans
(9 x benefit entitlement) - 600
Pension adjustment formula or Defined contribution pension plans
Employer & employee contributions + reallocated forfeitures + additional voluntary contributions
Pension adjustment formula for deferred profit sharing plan
Employer contributions + reallocated forfeiture
Pension adjustment formula for combination plans
Total of all pension credits for each component
Do you have to complete a T4 for an employee with remuneration < $500 annually?
No
How do you round salary accruals?
To the nearest whole dollar
What’s included in box 14, employment income, on the T4?
- salary
- wages
- bonuses
- wages in lieu of notice
- vacation pay
- tips
- honorariums
- directors fees
- commissions
- taxable allowances
- value of taxable benefits
What do you enter in box 24, EI insurable earnings, on the T4?
- total insurable earnings
- 0.00 if none
What do you enter in box 26, CPP/QPP pensionable earnings, on the T4?
- total insurable earnings
- 0.00 if none
T4 filing method for 1-50 employees
- paper
- T4 web
- electronic
