Payroll Fundamentals 1 Study Guide Exam Questions and Answers

Payroll Fundamentals 1 Study Guide Exam Questions and Answers The maximum employee and employer combined contribution limit to a Defined Contribution Pension Plan for 2022 is: - CORRECT ANSWER-30,780.00 Select the order of priority for withholding payroll deductions from an employee's earnings. - CORRECT ANSWER-Statutory deductions, legal deductions, union deductions, company-compulsory deductions, voluntary deductions Registered Retirement Savings Plan contribution limits are based on the lesser of: 18% of the employee's previous year's earned income or the maximum annual Registered Retirement Savings Plan limit less pension adjustments, less past service pension adjustments, plus any pension adjustment reversals, plus any unused contribution room carried forward from previous years. - CORRECT ANSWER-True A Requirement to Pay is issued by: - CORRECT ANSWER-Canada Revenue Agency and Revenu Québec Which type of retirement plan would result in a taxable benefit for the employee if the employer made the contribution? - CORRECT ANSWER-Registered Retirement Savings Plan What type of garnishment is issued when an employee's creditor wins a judgement in small claims court to collect an outstanding debt? - CORRECT ANSWER-Garnishment Order If the garnishment percentage is not clearly stated in the Third Party Demand document, the employer must: - CORRECT ANSWER-contact Canada Revenue Agency and/or Revenu Québec immediately for a written response Which of the following is not correct? - CORRECT ANSWER-A Registered Retirement Savings Plan is a pension plan If an employee's regular net pay including compulsory and voluntary deductions is not enough to satisfy a required garnishment, what must the employer do? - CORRECT ANSWER-Arrange with the employee to reduce or suspend voluntary deductions Severance Pay - CORRECT ANSWER-Under the Canada Labour Code, Part III, employees who have 12 months of continuous service are entitled to the greater of 2 days' wages at the regular rate, excluding overtime, for each completed year of employment or 5 days' wages at the regular rate, excluding overtime. $1,985.00 multiplied by 24 pay periods equals an annual salary of $47,640.00. The annual salary divided by 260 days equals a daily salary of $183.23. The daily salary multiplied by 8 days of entitlement equals a severance pay of $1,465.84. The eligible portion of a retiring allowance is: - CORRECT ANSWER-the portion of a retiring allowance eligible to be transferred to a Registered Retirement Savings Plan or registered pension plan with no income tax withholding at source What is the maximum number of weeks in severance an employee in Ontario can receive? - CORRECT ANSWER-26 weeks of regular wages Except for legislated severance pay, when are retiring allowances paid? - CORRECT ANSWER-At the discretion of the employer A retiring allowance does not include: - CORRECT ANSWER-accumulated overtime