Payroll Fundamentals 1 Exam
Questions and Answers
100% Verified Graded A+
1. RQ and CRA define a car allowance as reasonable if
Answer: - The allowance is based solely on business kilometres driven in a calendar year
- the amount provided is based on the following government-prescribed reasonable guidelines
- $0.58 per km for the first 5,000 business km's in the year ($0,62 in the Yukon, NWT & Nunavut)
- $0.51 thereafter ($0.56 for YK, NWT, NT)
- the employer does not reimburse the employee for expenses related to the same use of the vehicle
2. Personal Driving includes
Answer: - vacation travel
- driving to conduct personal business
- travel between home and work, even if the employer insists the employee drive the vehicle home
,3. Business driving includes
Answer: - driving to existing and prospective clients, points of call, and other oflce locations of the
employer
- when an employee travels directly from home to a point of call, which is not the employer's place of business where
the employee regularly reports for work
- when the employees travels home directly from a point of call
4. Availability (automobiles)
Answer: The number of thirty-day periods that the automobile is available to the employee for the
current taxation year. The employee has access to or control over the vehicle.
5. Automobile
Answer: A motor vehicle that is designed or adapted to primarily carry individuals on highways and
streets, and has seating capacity of not more than the driver and eight passengers
6. If a gift or award is given to an employee in cash
Answer: The amount is considered pensionable, insurable and taxable to the employee, subject to all
statutory deductions
7. Overtime meal allowance is considered non-taxable if (RQ)
Answer: - overtime is done at the employer's request and is expected to last for at least two consecutive
hours
- overtime is done rarely or on an occasional basis
,- the meal expenses are reimbursed upon presentation of receipts
- the meal expenses reimbursed or the value of the meal provided is reasonable
8. The four categories of employment income
Answer: - Earnings
- Allowances
- Benefits
- Taxable expense reimbursement
9. Earnings
Answer: Dollar amounts the employer pays an employee for the work they perform
10. Types of earnings
Answer: - a salary
- a rate for each hour worked
, - a rate per piece of goods produced or picked
- a disability payment for time ott work due to illness
- a payment for vacation time
- a premium payment for overtime hours worked
- a premium payment for hours worked on shift
11. Allowances
Answer: Additional dollar amounts paid to employees for the use, or anticipated use, of their personal
property for business purposes
12. Benefits
Answer: Dollar values attributed to something the employer has either provided to an employee or paid for on an
employee's behalf
13. Expense Reimbursements
Answer: Dollar amounts paid to employees to cover expenses that they incur while performing their
job.
14. Regular payments
Answer: Have an established frequency, such as weekly-paid salary or wages
15. Non-regular payments
Answer: payments that do not occur each pay period, for example, a bonus or a retroactive
Questions and Answers
100% Verified Graded A+
1. RQ and CRA define a car allowance as reasonable if
Answer: - The allowance is based solely on business kilometres driven in a calendar year
- the amount provided is based on the following government-prescribed reasonable guidelines
- $0.58 per km for the first 5,000 business km's in the year ($0,62 in the Yukon, NWT & Nunavut)
- $0.51 thereafter ($0.56 for YK, NWT, NT)
- the employer does not reimburse the employee for expenses related to the same use of the vehicle
2. Personal Driving includes
Answer: - vacation travel
- driving to conduct personal business
- travel between home and work, even if the employer insists the employee drive the vehicle home
,3. Business driving includes
Answer: - driving to existing and prospective clients, points of call, and other oflce locations of the
employer
- when an employee travels directly from home to a point of call, which is not the employer's place of business where
the employee regularly reports for work
- when the employees travels home directly from a point of call
4. Availability (automobiles)
Answer: The number of thirty-day periods that the automobile is available to the employee for the
current taxation year. The employee has access to or control over the vehicle.
5. Automobile
Answer: A motor vehicle that is designed or adapted to primarily carry individuals on highways and
streets, and has seating capacity of not more than the driver and eight passengers
6. If a gift or award is given to an employee in cash
Answer: The amount is considered pensionable, insurable and taxable to the employee, subject to all
statutory deductions
7. Overtime meal allowance is considered non-taxable if (RQ)
Answer: - overtime is done at the employer's request and is expected to last for at least two consecutive
hours
- overtime is done rarely or on an occasional basis
,- the meal expenses are reimbursed upon presentation of receipts
- the meal expenses reimbursed or the value of the meal provided is reasonable
8. The four categories of employment income
Answer: - Earnings
- Allowances
- Benefits
- Taxable expense reimbursement
9. Earnings
Answer: Dollar amounts the employer pays an employee for the work they perform
10. Types of earnings
Answer: - a salary
- a rate for each hour worked
, - a rate per piece of goods produced or picked
- a disability payment for time ott work due to illness
- a payment for vacation time
- a premium payment for overtime hours worked
- a premium payment for hours worked on shift
11. Allowances
Answer: Additional dollar amounts paid to employees for the use, or anticipated use, of their personal
property for business purposes
12. Benefits
Answer: Dollar values attributed to something the employer has either provided to an employee or paid for on an
employee's behalf
13. Expense Reimbursements
Answer: Dollar amounts paid to employees to cover expenses that they incur while performing their
job.
14. Regular payments
Answer: Have an established frequency, such as weekly-paid salary or wages
15. Non-regular payments
Answer: payments that do not occur each pay period, for example, a bonus or a retroactive
