PAYROLL FUNDAMENTALS LATEST 2026 FINALS
QUESTIONS AND SOLUTIONS RATED A+
✔✔Penalties for Late Source Deduction Remittances - ✔✔- 3% if 3 business days late
- 5% if 4-5 business days late
- 7% if 6-7 business days late
- 10% if 8 or more days late
✔✔Remittance Methods for Source Deductions - ✔✔- Electronic payments
- Financial institution
- by mail
- by the service provider
✔✔Actions if No Source Deduction Remittance - ✔✔Notify the CRA via My Business
Account, using TeleReply, or sending the remittance form by mail
✔✔Benefit Entitlement - ✔✔The portion of a member's pension accrued during the year
✔✔Pension Adjustments (PA) - ✔✔The measure of benefit earned in a year in a
registered pension plan or deferred profit sharing plan
✔✔Maximum Annual Benefit Limit - ✔✔$3,025.56 for 2019 and $3,092.22 for 2020
✔✔Pension Credit - ✔✔Reflects the value of benefit earned under various pension
plans
✔✔Pension Adjustment Formula - ✔✔Used to calculate a pension credit for a deferred
profit sharing plan: (9 x benefit entitlement) - 600
✔✔Limit on Retirement Savings Contributions - ✔✔18%
✔✔Maximum Benefit Rate in Defined Benefit Pension Plan - ✔✔2% of Compensation
✔✔Vesting in Pension Plan - ✔✔Entitlement to Employer's Contribution
✔✔T4 Box 10 - ✔✔Province of Employment
✔✔T4 Box 12 - ✔✔Social Insurance Number
✔✔T4 Box 14 - ✔✔Employment Income
✔✔T4 Box 16 - ✔✔Employee's CPP Contributions
✔✔T4 Box 17 - ✔✔Employee's QPP Contributions
, ✔✔T4 Box 18 - ✔✔Employee's EI Premiums
✔✔T4 Box 20 - ✔✔RPP Contributions
✔✔Box 22 - ✔✔Income Tax Deducted
✔✔Box 24 - ✔✔EI Insurable Earnings
✔✔Box 26 - ✔✔CPP/QPP Pensionable Earnings
✔✔Box 28 - ✔✔Exempt (CPP-QPP, EI and PPIP)
✔✔Box 29 - ✔✔Employment Code
✔✔Box 44 - ✔✔Union Dues
✔✔Box 46 - ✔✔Charitable Donations
✔✔Box 50 - ✔✔RPP or DPSP Registration Number
✔✔Box 52 - ✔✔Pension Adjustment
✔✔Box 54 - ✔✔Payroll Account Number
✔✔Box 55 on T4 - ✔✔Employee's Premiums for Public Pension Plan (PPIP)
✔✔Box 56 on T4 - ✔✔Insurable Earnings for Public Pension Plan (PPIP)
✔✔Code 30 on T4 - ✔✔Board and Lodging
✔✔Code 31 on T4 - ✔✔Special Work Site
✔✔Code 32 on T4 - ✔✔Travel in Prescribed Zone
✔✔Code 33 on T4 - ✔✔Medical Travel Assistance
✔✔Code 34 on T4 - ✔✔Personal Use of Employer's Vehicle
✔✔Code 36 on T4 - ✔✔Interest-free and Low-interest Loans
✔✔Code 38 on T4 - ✔✔Security Options Benefits
QUESTIONS AND SOLUTIONS RATED A+
✔✔Penalties for Late Source Deduction Remittances - ✔✔- 3% if 3 business days late
- 5% if 4-5 business days late
- 7% if 6-7 business days late
- 10% if 8 or more days late
✔✔Remittance Methods for Source Deductions - ✔✔- Electronic payments
- Financial institution
- by mail
- by the service provider
✔✔Actions if No Source Deduction Remittance - ✔✔Notify the CRA via My Business
Account, using TeleReply, or sending the remittance form by mail
✔✔Benefit Entitlement - ✔✔The portion of a member's pension accrued during the year
✔✔Pension Adjustments (PA) - ✔✔The measure of benefit earned in a year in a
registered pension plan or deferred profit sharing plan
✔✔Maximum Annual Benefit Limit - ✔✔$3,025.56 for 2019 and $3,092.22 for 2020
✔✔Pension Credit - ✔✔Reflects the value of benefit earned under various pension
plans
✔✔Pension Adjustment Formula - ✔✔Used to calculate a pension credit for a deferred
profit sharing plan: (9 x benefit entitlement) - 600
✔✔Limit on Retirement Savings Contributions - ✔✔18%
✔✔Maximum Benefit Rate in Defined Benefit Pension Plan - ✔✔2% of Compensation
✔✔Vesting in Pension Plan - ✔✔Entitlement to Employer's Contribution
✔✔T4 Box 10 - ✔✔Province of Employment
✔✔T4 Box 12 - ✔✔Social Insurance Number
✔✔T4 Box 14 - ✔✔Employment Income
✔✔T4 Box 16 - ✔✔Employee's CPP Contributions
✔✔T4 Box 17 - ✔✔Employee's QPP Contributions
, ✔✔T4 Box 18 - ✔✔Employee's EI Premiums
✔✔T4 Box 20 - ✔✔RPP Contributions
✔✔Box 22 - ✔✔Income Tax Deducted
✔✔Box 24 - ✔✔EI Insurable Earnings
✔✔Box 26 - ✔✔CPP/QPP Pensionable Earnings
✔✔Box 28 - ✔✔Exempt (CPP-QPP, EI and PPIP)
✔✔Box 29 - ✔✔Employment Code
✔✔Box 44 - ✔✔Union Dues
✔✔Box 46 - ✔✔Charitable Donations
✔✔Box 50 - ✔✔RPP or DPSP Registration Number
✔✔Box 52 - ✔✔Pension Adjustment
✔✔Box 54 - ✔✔Payroll Account Number
✔✔Box 55 on T4 - ✔✔Employee's Premiums for Public Pension Plan (PPIP)
✔✔Box 56 on T4 - ✔✔Insurable Earnings for Public Pension Plan (PPIP)
✔✔Code 30 on T4 - ✔✔Board and Lodging
✔✔Code 31 on T4 - ✔✔Special Work Site
✔✔Code 32 on T4 - ✔✔Travel in Prescribed Zone
✔✔Code 33 on T4 - ✔✔Medical Travel Assistance
✔✔Code 34 on T4 - ✔✔Personal Use of Employer's Vehicle
✔✔Code 36 on T4 - ✔✔Interest-free and Low-interest Loans
✔✔Code 38 on T4 - ✔✔Security Options Benefits
