Payroll & Compliance
Payroll can be defined 4 ways, name 2.
the department that administers the payroll
the total number of people employed by an organization
the wages and salaries paid out in a year
a list of employees to be paid and the amount due to each
Which organization can an employer release employee's information without consent?
Government agencies
Define contributory earnings.
pensionable earnings less applicable exemption
Tony turns 70 on February 15th, how many months should Tony's annual maximum EI premium be prorated over?
0! EI maximums are not prorated.
If an employee worked 40 hours this week plus 2 hours of overtime at 1.5 x reg rate. How many insurable hours would be reported on the ROE?
42
Mention Salary
What is the possible result of payroll non-compliance?
Fines, penalties and interest
(also possible jail time)
Who administers the EI reduction program, CPP benefits and old age security?
Service Canada - also ROE & EI
Which of the following payments would be subject to CPP contributions? 1-severance pay 2-an employee reimbursement for purchase of office supplies 3-Controlled tips 4-workers compensation advance that is repaid
Controlled tips!
Which of the following is not subject to EI premiums:
- Muhammad works casually as a licensed practical nurse at a Nursing home. - Gina works at BPB Corporation and owns 37% of the voting shares - Penelope employs her sister at her personal business - Jim an off duty fire fighter was called in by his boss to assist with an ice rescue
Penelope employs her sister at her personal business
Within how many days must a paper ROE be issued?
within 5 calendar days of interruption of earnings
Give an example of an internal and an external stakeholder.
Internal - employers, employees, other departments, etc.
External - Benefit and pension providers, courts, unions, charities
Name 2 matters the ESDC is responsible for.
Administration of wage loss provisions and provisions related to Job creation programs
Establishes of annual maximum insurable earnings and the EI rate for employees
Keeps record of individuals CPP contributions and pensionable earnings
Amends regulations under the CPP and EI Act
When an employee who is over the age of 65 but under the age of 70, and receiving a Canada Pension Plan retirement pension, requests that Canada Pension Plan contributions no longer be withheld from their pay, they must provide you with:
An election to stop paying Canada Pension Plan contributions is filled out and presented to your employer
Do not confuse with a disability award letter from Service canada in which we must also stop CPP
Which of the following payments would be included in insurable earnings? 1- an employer paid group term life insurance payment 2- employer contributions to an RRSP that employee can't withdraw until retires 3- Salary earned but not paid prior to death 4- banked vacation pay, paid on termination
banked vacation pay, paid on termination
An employee has a home office in NS and works in sales for PEI and NB. His employer is based in Ontario. He moved to PEI on December 30. What provincial income tax will he be subject to?
Ontario
Office that pays them
Personal tax will be where they lived last day of the year. Difference in liabilities
What type of issues do employment standards dictate?
hours of work, minimum wage, overtime, vacation pay and termination pay requirements.
For what 2 reasons are employers authorized to collect SIN's?
ROE's
T4's (income tax slips)
Service Canada issues SIN's
Name 3 instances in which you must prorate the CPP contribution.
Turns 18 - start first pay of following month; turns 70 - stop first pay of the following month; considered disabled by Service Canada; at least 65 years of age and under the age of 70, in receipt of C/QPP retirement pension, and files an election to stop CPP contributions (Form CPT30); dies
What are the criteria that qualifies an employer for a reduced EI rate?
Must maintain a short term disability plan and must share 5/12's of the savings with the employees
There are 3 instances in which the manual method should be used for calculating income tax. Name 2.
•report a claim code “X” on their federal and/or provincial/territorial TD1 forms •are claiming labour-sponsored funds tax credits •earn more than the maximum amounts included in the Payroll Deductions Tables (mention claim code 0 - must be same on fed and prov)
An employee who works in the telecommunications industry in New Brunswick is subject to the labour standards in what jurisdictions?
Federal.
- Transportation; Communications, radio and television broadcasting; banking; uranium mining; Crown Corps (Canada Post and CBC); Navigation & Shipping (dock and oil rig workers)
What agency is responsible for the recovery of debts for overpayment of EI or CPP?
CRA
also responsible for determining what employment AND earnings are pensionable or insurable; establishing annual maximum pensionable earnings; the number pf hours of insurable employemnt
Joe has weekly earnings of $1,500 and will turn 70 on July 1. What are the maximum first and second CPP contributions?
CPP1 - $2,256.04
CPP2 - $109.67
Mya is paid $1,600 biweekly. She receives a non-cash taxable benefit of $50 and a $100 car allowance. This pay she received commission of $500 and had union dues of $35. What is the total EI premium that must be remitted to the CRA?
$87.65
What is a T1213 form submitted to the CRA for?
A request to have less tax withheld at source. Must receive letter of authority from CRA.