Payroll & Benefits-Chapter 1: Introduction to Canadian Payroll Fundamentals 1 Exam

Payroll & Benefits-Chapter 1: Introduction to Canadian Payroll Fundamentals 1 Exam What is often the single largest operating cost for a business? - CORRECT ANSWERPayroll costs What are the key considerations of payroll administration? - CORRECT ANSWER-- accuracy -timeliness -resourcefulness What 3 basic questions must be addressed before you pay? - CORRECT ANSWER-1. Is the worker an employee or are they providing a contracted service? 2. If they are an employee, does federal or provincial jurisdiction apply? 3. Who are the stakeholders and what are their needs? What is an employer obligated to due in an employee/employer relationship? - CORRECT ANSWER--Withhold CPP, EI, and income tax contributions -Pay employer contributions and premiums -Remit deductions and employer contributions to CRA What happens if an employer fails to withhold and remit contributions? - CORRECT ANSWER-Failure to withhold and remit can result in penalties What 3 steps are used to evaluate a contract for work? - CORRECT ANSWER-1. Examine the intent of the parties on entering the contract 2. Determine if the employment meets the definitions of a contract of employment 3. Compare the intention of the parties to the contract to the actual working relationship What is a Social Insurance Number(SIN)? - CORRECT ANSWER--personal account number with the government -issued by service Canada How do you know is a Social Insurance Number is temporary? - CORRECT ANSWERThe first digit will be 9 What does the last digit of the Social Insurance Number represent? - CORRECT ANSWER--A "Check Figure": Formula validating SIN is included in most payroll software How soon must an employees SIN be requested after their start date? - CORRECT ANSWER-Within 3 days What are an employers responsibilities in relation to employee SIN's? - CORRECT ANSWER--must ensure privacy of number -only to be used for identity purposes for communicating with the government Do payroll compliance rules differ based on jurisdiction? - CORRECT ANSWER-yes In regard to payroll compliance, what must business under federal jurisdictions follow? - CORRECT ANSWER-The Canada Labour Code In regards to payroll compliance, what must business under provincial jurisdiction follow? - CORRECT ANSWER-The provincial or territorial employment and labour standards. What are federally regulated organizations, generally in?(Examples) - CORRECT ANSWER-Certain industries or sectors Ex) banking, radio, television, air transportation, etc. Who are internal stakeholders in the payroll process? - CORRECT ANSWER-- employees -business owners and managers Who are external stakeholders in the payroll process? - CORRECT ANSWER--Canada Revenue Agency, Service Canada -Provincial government financial m