Payroll Fundamentals 1 FINAL EXAM QUESTIONS AND
VERIFIED CORRECT ANSWERS 2025-2026 || 100%
GUARANTEED PASS <BRAND NEW VERSION>
Personal Driving includes: - CORRECT ANSWER- - vacation travel
- driving to conduct personal business
- travel between home and work, even if the employer insists the employee drive the vehicle
home
Business driving includes: - CORRECT ANSWER- - driving to existing and prospective clients,
points of call, and other office 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
Availability (automobiles) - CORRECT 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.
Automobile - CORRECT 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
RQ and CRA define a car allowance as reasonable if: - CORRECT 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
If a gift or award is given to an employee in cash - CORRECT ANSWER- The amount is
considered pensionable, insurable and taxable to the employee, subject to all statutory
deductions
Overtime meal allowance is considered non-taxable if (RQ): - CORRECT 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
The four categories of employment income - CORRECT ANSWER- - Earnings
- Allowances
- Benefits
- Taxable expense reimbursement
Earnings - CORRECT ANSWER- Dollar amounts the employer pays an employee for the work
they perform
Types of earnings - CORRECT ANSWER- - a salary
- a rate for each hour worked
, - a rate per piece of goods produced or picked
- a disability payment for time off work due to illness
- a payment for vacation time
- a premium payment for overtime hours worked
- a premium payment for hours worked on shift
Allowances - CORRECT ANSWER- Additional dollar amounts paid to employees for the use, or
anticipated use, of their personal property for business purposes
Benefits - CORRECT ANSWER- Dollar values attributed to something the employer has either
provided to an employee or paid for on an employee's behalf
Expense Reimbursements - CORRECT ANSWER- Dollar amounts paid to employees to cover
expenses that they incur while performing their job.
Regular payments - CORRECT ANSWER- Have an established frequency, such as weekly-paid
salary or wages
Non-regular payments - CORRECT ANSWER- payments that do not occur each pay period, for
example, a bonus or a retroactive adjustment
Salary - CORRECT ANSWER- A fixed amount of money paid to an employee for each pay period.
Salary per pay period - CORRECT ANSWER- Annual salary / number of pay periods per year
VERIFIED CORRECT ANSWERS 2025-2026 || 100%
GUARANTEED PASS <BRAND NEW VERSION>
Personal Driving includes: - CORRECT ANSWER- - vacation travel
- driving to conduct personal business
- travel between home and work, even if the employer insists the employee drive the vehicle
home
Business driving includes: - CORRECT ANSWER- - driving to existing and prospective clients,
points of call, and other office 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
Availability (automobiles) - CORRECT 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.
Automobile - CORRECT 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
RQ and CRA define a car allowance as reasonable if: - CORRECT 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
If a gift or award is given to an employee in cash - CORRECT ANSWER- The amount is
considered pensionable, insurable and taxable to the employee, subject to all statutory
deductions
Overtime meal allowance is considered non-taxable if (RQ): - CORRECT 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
The four categories of employment income - CORRECT ANSWER- - Earnings
- Allowances
- Benefits
- Taxable expense reimbursement
Earnings - CORRECT ANSWER- Dollar amounts the employer pays an employee for the work
they perform
Types of earnings - CORRECT ANSWER- - a salary
- a rate for each hour worked
, - a rate per piece of goods produced or picked
- a disability payment for time off work due to illness
- a payment for vacation time
- a premium payment for overtime hours worked
- a premium payment for hours worked on shift
Allowances - CORRECT ANSWER- Additional dollar amounts paid to employees for the use, or
anticipated use, of their personal property for business purposes
Benefits - CORRECT ANSWER- Dollar values attributed to something the employer has either
provided to an employee or paid for on an employee's behalf
Expense Reimbursements - CORRECT ANSWER- Dollar amounts paid to employees to cover
expenses that they incur while performing their job.
Regular payments - CORRECT ANSWER- Have an established frequency, such as weekly-paid
salary or wages
Non-regular payments - CORRECT ANSWER- payments that do not occur each pay period, for
example, a bonus or a retroactive adjustment
Salary - CORRECT ANSWER- A fixed amount of money paid to an employee for each pay period.
Salary per pay period - CORRECT ANSWER- Annual salary / number of pay periods per year
