Payroll Compliance
Legislation II Exam (Actual
2025) Questions with Correct
verified Answers/ Latest
Version
,Difference between conciliation and mediation -
<<<Answers>>>The conciliation and mediation processes are
similar; however, the mediator is only appointed after
conciliation efforts have failed.
Memorandum of Agreement or Memorandum of Settlement. -
<<<Answers>>>Once a tentative agreement has been reached
on all the issues, the specific terms and provisions are
documented in a Memorandum of Agreement or
Memorandum of Settlement.
Retroactive pay adjustments - <<<Answers>>>Retroactive
pay adjustments may be required when the new collective
agreement is settled after the expiration date of the existing
contract. There is no statutory requirement to pay
retroactively. Whether or not to pay retroactively is an issue
that has to be negotiated between management and the union
or through mediation
Who is subject to the NWT tax? - <<<Answers>>>All
employees who work in the NWT, regardless of where they
live, are subject to the NWT payroll tax on their employment
income earned in the NWT. An individual who normally
works in the NWT (more than 50% of the time) is subject to
the 2% tax on all employment income in the year, even if a
portion is earned in another jurisdiction
The 2% tax applies to all income earned, including: -
<<<Answers>>>salaries and wages, bonuses, gratuities
,commissions and honoraria
vacation travel assistance
employee stock options
value of allowances and benefits taxable under the federal
Income Tax Act
contributions by employers to registered retirement savings
plans (RRSP)
retiring allowances or severance pay
An employee is not liable to pay the 2% tax where: -
<<<Answers>>>the employee normally works, performs
duties or provides services outside the Territories for that
employer; and b) the remuneration paid to the employee in the
year by that employer does not exceed the prescribed amount
($5,000.00).
There are certain types of employment and types of earnings
that are not subject to the payroll tax in the Northwest
Territories and Nunavut; some examples include: -
<<<Answers>>>Remuneration paid to individuals who are in
a religious order and who have taken a vow of poverty that
qualifies under the federal Income Tax Act is not subject to
the tax.
Employees who normally work outside Nunavut (that is,
work, perform duties or provide services outside Nunavut for
more than half of the number of days worked for an employer
, in the year) and who do not earn more than $5,000.00 a year
in the territory are also exempted from paying the tax.
If an employer has not withheld tax for an extended period for
an employee normally working outside the Northwest
Territories/Nunavut and if withholding the amount due in one
lump-sum would cause 'extreme hardship' for the employee,
the employee may apply to arrange for withholdings to be
made over several pay periods.
The areas in provincial/territorial legislation that primarily
impact payroll are: - <<<Answers>>>eligibility and
membership requirements
contribution requirements
employee and employer contribution remittance deadlines
PRPP - <<<Answers>>>A PRPP is a defined contribution-
style plan that is set up and administered by a Canadian
institution licensed to act as an administrator. Unlike most
workplace registered pension plans, a PRPP is not managed
by an employer but by an administrator.
These plans are optional and are intended to provide
employees who do not have access to a workplace pension
plan with an alternative to save for retirement
Worker's Compensation - <<<Answers>>>Workers'
compensation is a legislated provincial/territorial insurance
Legislation II Exam (Actual
2025) Questions with Correct
verified Answers/ Latest
Version
,Difference between conciliation and mediation -
<<<Answers>>>The conciliation and mediation processes are
similar; however, the mediator is only appointed after
conciliation efforts have failed.
Memorandum of Agreement or Memorandum of Settlement. -
<<<Answers>>>Once a tentative agreement has been reached
on all the issues, the specific terms and provisions are
documented in a Memorandum of Agreement or
Memorandum of Settlement.
Retroactive pay adjustments - <<<Answers>>>Retroactive
pay adjustments may be required when the new collective
agreement is settled after the expiration date of the existing
contract. There is no statutory requirement to pay
retroactively. Whether or not to pay retroactively is an issue
that has to be negotiated between management and the union
or through mediation
Who is subject to the NWT tax? - <<<Answers>>>All
employees who work in the NWT, regardless of where they
live, are subject to the NWT payroll tax on their employment
income earned in the NWT. An individual who normally
works in the NWT (more than 50% of the time) is subject to
the 2% tax on all employment income in the year, even if a
portion is earned in another jurisdiction
The 2% tax applies to all income earned, including: -
<<<Answers>>>salaries and wages, bonuses, gratuities
,commissions and honoraria
vacation travel assistance
employee stock options
value of allowances and benefits taxable under the federal
Income Tax Act
contributions by employers to registered retirement savings
plans (RRSP)
retiring allowances or severance pay
An employee is not liable to pay the 2% tax where: -
<<<Answers>>>the employee normally works, performs
duties or provides services outside the Territories for that
employer; and b) the remuneration paid to the employee in the
year by that employer does not exceed the prescribed amount
($5,000.00).
There are certain types of employment and types of earnings
that are not subject to the payroll tax in the Northwest
Territories and Nunavut; some examples include: -
<<<Answers>>>Remuneration paid to individuals who are in
a religious order and who have taken a vow of poverty that
qualifies under the federal Income Tax Act is not subject to
the tax.
Employees who normally work outside Nunavut (that is,
work, perform duties or provide services outside Nunavut for
more than half of the number of days worked for an employer
, in the year) and who do not earn more than $5,000.00 a year
in the territory are also exempted from paying the tax.
If an employer has not withheld tax for an extended period for
an employee normally working outside the Northwest
Territories/Nunavut and if withholding the amount due in one
lump-sum would cause 'extreme hardship' for the employee,
the employee may apply to arrange for withholdings to be
made over several pay periods.
The areas in provincial/territorial legislation that primarily
impact payroll are: - <<<Answers>>>eligibility and
membership requirements
contribution requirements
employee and employer contribution remittance deadlines
PRPP - <<<Answers>>>A PRPP is a defined contribution-
style plan that is set up and administered by a Canadian
institution licensed to act as an administrator. Unlike most
workplace registered pension plans, a PRPP is not managed
by an employer but by an administrator.
These plans are optional and are intended to provide
employees who do not have access to a workplace pension
plan with an alternative to save for retirement
Worker's Compensation - <<<Answers>>>Workers'
compensation is a legislated provincial/territorial insurance
