Test 3 Flashcards

1
Q

Remitter types

A

New or regular remitter

  • Less than 25000
  • We have to receive your deductions on or before the 15th day of the month after the month you paid your employees.

Quarterly remitter

  • Less than 3000
  • 15th day following each quarter

Accelerated remitter threshold 1

  • $25,000 to $99,999.99
  • Period 1 : Day 1 - 15 and paid by 25 (each month)
  • Period 2: Day 16 - end and paid by 10th

Accelerated remitter threshold 2

  • 100000+
  • the 1st through the 7th day of the month;
  • the 8th through the 14th day of the month;
  • the 15th through the 21st day of the month;
  • the 22nd through the last day of the month.
  • Paid 3 days later
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2
Q

3 Types of Non-regular payments

A

retroactive payments
bonus payments
vacation payments

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3
Q

Types of retroactive pay

A

Retroactive Adjustment
Retroactive Increase
Retroactive Payment

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4
Q

What are the 3 general methods of calculating commissions?

A

Straight Percentage of Sales
Fixed Amount per Sale
Multiple Rates per Target Level

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5
Q

Who receives payroll remittances?

A
Employees
The Canada Revenue Agency
Workers Compensation Boards
Provincial Ministries of Finance
Courts
Insurance providers
Pension fund administrators
Other administrators of funds withheld from employee’s wages
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6
Q

What are the steps taken to process payroll?

A

Communicate to employees the payroll dates.

Advise other departments or functions of input “cut-off” dates for:
Changes to static information.
Newly hired employee information.
Termination or lay-off advice.
Pay cycle information such as regular hours, overtime, special payments.

Plan ahead to ensure that adequate time is allowed for unusual events such as holidays and vacations.

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7
Q

What are some of the selection criteria for a payroll system?

A

When choosing a payroll system the employer must consider:
The number of employees currently and in the foreseeable future.
The complexity of payroll related to;
Number of pay cycles.
Types of earnings
Deductions allowed.
Number of provinces with employees.
The capability of the payroll administrator.
The degree of integration desired to other company systems, if any.
The in-house support capability for the computer system.
The extent to which privacy is a concern.

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8
Q

List some advantages to using a computerized system

A

Computer systems can process large amounts of data, accurately.
Tables for calculation of with-holdings can be included with the computer software and are generally easy to install changes as legislative requirements change.
Output files can be created to provide data for other uses and then update other data files, such as automatically creating journal entries.
Input of information can be automated from other systems such as Time and Attendance record keeping. This simplifies input and improves accuracy.
Most systems provide some amount of customization to meet the needs of the employer.
Computer systems normally store data in standard file formats to facilitate system upgrades and transfer of information to third parties such as the Canada Revenue Agency or pension administrator

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9
Q

Name types of payroll systems.

A

Computerized
- Stand-alone – process payroll only
Integrated management systems (ERP)
- Hybrid integrated systems (ERP with mixed “best of class” modules)
- Out-sourced payroll systems, usually provide data formats for exchange to other systems used by employer

Manual

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10
Q

What is a general ledger?

A

Records used to record financial transactions by date referencing general ledger accounts.

Example used is general journal format.

Journals may also be specific to source of entries, payroll often use summaries of registers.

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11
Q

List some of the information found in a journal entry/general journal.

A
Journal entry number
Transaction date
Accounting period or month
Account number and name
Debit amounts
Credit amounts
Total debits and credits
Description or explanation
Posting reference
Created by….
Approval
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12
Q

What is are journal entries? What are the 5 normal groups used for financial statement reporting?

A
Used to post journal information to accounts which record ongoing transactions by type.
Organized into groupings:
Assets
Liabilities
Equity
Revenues
Expense
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13
Q

What is a payroll register?

A

Chronological listing of transactions

For payroll purposes usually by cheque, separate register for each pay cycle
Provides detail of calculations for each employee of earnings and deductions

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14
Q

Employer Health Tax (Ontario) – When do they need to pay; when do they need to remit payment?

A

Ontario Employer Health Tax (EHT)

Most employers are exempt for the first $450,000 of payroll
The tax rate of 1.95% of payroll.
If an employer has payroll less than $600,000 than an annual return and payment is required by March 15th of the year following.
If the employer’s payroll is in excess of $600,000 then monthly instalments need to be made

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15
Q

What information is needed to determine WSIB premiums?

A
Industry classification
Rates
Payment process
Assessable earnings
Benefits to injured workers
Penalty or award systems for employer experience.
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16
Q

Meredith principles of WSIB

A
No-Fault Compensation
Collective Liability
Security of Payment
Exclusive Jurisdiction
Independent Board
17
Q

QPP

A

QPP, instead of CPP, contributions are deducted from employees reporting for work at an office of an employer located in Québec, or from employees not required to report for work at an establishment of the employer in Québec, but paid from an employer in Québec
QPP contributions are remitted to Revenu Québec

Employees
who are 70 years or older and who are in pensionable employment are still subject to QPP contributions on their pensionable earnings, even if they are in receipt of a CPP/QPP retirement pension from either the Canada or Québec Pension Plan

between age 55 and 70 can reduce their work hours and continue contributing to QPP as if their earnings had not been reduced. The phased retirement arrangement between the employee and employer must be approved by the Régie des rentes du Québec.

18
Q

QPIP

A

Similar to EI benefits, QPIP benefits are paid as a percentage of insurable earnings for a period of weeks, subject to an earnings cap.

However, QPIP benefits differ from EI benefits in several ways:
the maximum earnings cap is higher under the QPIP than under EI
the benefit rate is based on a higher percentage of insurable earnings
there is no waiting period to receive the first benefit payment
fathers can receive five weeks paternity leave in addition to the regular parental leave which may be taken by either parent or shared between them
claimants have the choice of receiving either higher benefits for a shorter period or lower benefits for a longer period

All employees and employers have to pay QPIP premiums on insurable earnings and allowances from insurable employment

19
Q

Business registration

A

Canada Revenue Agency
Business Number
“RP” sub-account

Provincial Corporate Tax
Business Number

Provincial Health Tax if different

Workers’ Compensation