Chapter 1
Introduction to Canadian Payroll
Solutions to Questions
Review Questions:
1-1 The criteria are:
• What was the intent of the parties in entering the contract.
• The degree of control that the payer exerts over the worker
• Who provides the necessary tools for the work to be performed
• Whether the worker can sub-contract work to others or hire assistants
• Whether or not the worker has financial investment in a business to perform
the work
• The degree of financial risk that the worker has
• If there is opportunity for additional profit, or risk of financial loss in
performing the contract
• The degree of integration of the worker into the payer’s organization
1-2 The employer must receive a Social Insurance Number from the
employee within three days of commencing the employment contract, or
terminated employment.
The Social Insurance Number should be kept confidential and only used in
communicating employee information to the government.
If the Social Insurance Number starts with the number 9 then it is a temporary
number. The employer need to know the expiry date and if the employee cannot
provide a permanent number, or evidence of expiry extension then the
employment contract needs to be terminated by the expiry date.
1-3 Industries covered by federal legislation include:
• banks
• inter-provincial marine shipping, ferry and port services
• air transportation, including airports and airlines
• railway and road transportation that involves crossing provincial or international
borders
• canals, pipelines, tunnels and bridges (crossing provincial borders)
• telephone, telegraph and cable systems
• radio and television broadcasting
• grain elevators, feed and seed mills
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, • uranium mining and processing
• businesses dealing with the protection of fisheries as a natural resource
• many First Nation activities
• most federal Crown corporations
• private businesses necessary to the operation of a federal act
1-4 Stakeholders for payroll administration within the company are all employees, as well
as accounting, human resources and management.
1-5 External stakeholders for payroll administration include the Canada Revenue
Agency, Revenue Quebec, provincial/territorial agencies, courts, unions, pension
administrators, group benefit insurance carriers, charities and any other party
for which there are deductions from the employees’ wages.
Suggested Exercises:
1-1 The seven criteria should be discussed with the class, depending on what
personal information the instructor is willing to share. In most situations the
instructor will be an employee.
1-2 The different criteria used in Quebec should be compared to the Canada
Revenue Agency. Discussions should lead to students to understand that the
differences are more semantic than substantive and either set of criteria will
likely lead to the same determination.
1-3 The exercise is expected to entice a variety of different opinions to be expressed
as to why each industry is of the “national interest”. Responses will vary by class.
1-4 As education is provincial responsibility it is expected that all schools will fall
under provincial or territorial jurisdiction.
1-5 The employer challenges in administering the Social Insurance Number identified
by students will vary widely based on individual experience and work knowledge.
Emphasis should be placed on the initial request, monitoring temporary numbers
and maintaining confidentiality.
1-6 This exercise will provide for discussion of internal and external stakeholders for
the payroll process. Internal parties should include employees, business owners
and managers, as well as departments such as accounting, human resources and
information technology. External stakeholders list should include the Canada
Revenue Agency, Service Canada, courts, unions and benefit providers.
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,Assessment Questions:
1-1 d) All of the above
1-2 b) The worker can hire assistants
1-3 d) Contact the Canada Revenue Agency for a ruling.
1-4 a) Three days
1-5 c) Request the employee provide card expiry date
1-6 a) Banking
1-7 c) Credit Unions
1-8 d) National retailer
1-9 c) Human resources
1-10 a) Canada Revenue Agency
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, Chapter 2
Labour and Employment
Solutions to Questions
Review Questions:
2-1 The criteria used to determine the applicable jurisdiction for employment standards will
depend on the employer’s jurisdiction as covered in chapter 1 and the location where
the work is performed.
2-2 The most recent employment standards to be introduced in most jurisdictions include
reservist leave, organ donation leave, leave of absence when a child has disappeared or
dies as a result of a criminal action.
2-3 Employers may provide for additional employment benefits or betting working
conditions than required under employment standards legislation. The legislation
provides for the minimum condition or benefit that must be provided to the employee.
2-4 Union agreements may contain provision that are more generous than employment
standards and therefore must be honoured by the employer. Should the union
agreement provide less benefit to the employee than the legislated standard than the
standard must be honoured by the employer.
2-5 If an employer wants to establish a policy that will impact employees in multiple
jurisdictions then the policy must meet the most generous standard of the jurisdictions.
Suggested Exercises:
2-1 This exercise can be used as a major assignment for each student to be given a different
province/territory, or an in-class activity. The following template may be a useful
starting point, the answers will vary based on the standards in place when the research
is done.
Assignment is worth ___% of total grade.
Dryden 2025 Release: Solutions Manual Chapter 2
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1
Introduction to Canadian Payroll
Solutions to Questions
Review Questions:
1-1 The criteria are:
• What was the intent of the parties in entering the contract.
• The degree of control that the payer exerts over the worker
• Who provides the necessary tools for the work to be performed
• Whether the worker can sub-contract work to others or hire assistants
• Whether or not the worker has financial investment in a business to perform
the work
• The degree of financial risk that the worker has
• If there is opportunity for additional profit, or risk of financial loss in
performing the contract
• The degree of integration of the worker into the payer’s organization
1-2 The employer must receive a Social Insurance Number from the
employee within three days of commencing the employment contract, or
terminated employment.
The Social Insurance Number should be kept confidential and only used in
communicating employee information to the government.
If the Social Insurance Number starts with the number 9 then it is a temporary
number. The employer need to know the expiry date and if the employee cannot
provide a permanent number, or evidence of expiry extension then the
employment contract needs to be terminated by the expiry date.
1-3 Industries covered by federal legislation include:
• banks
• inter-provincial marine shipping, ferry and port services
• air transportation, including airports and airlines
• railway and road transportation that involves crossing provincial or international
borders
• canals, pipelines, tunnels and bridges (crossing provincial borders)
• telephone, telegraph and cable systems
• radio and television broadcasting
• grain elevators, feed and seed mills
Dryden 2025 Release: Solutions Manual Chapter 1
©2025 Copyright
1
, • uranium mining and processing
• businesses dealing with the protection of fisheries as a natural resource
• many First Nation activities
• most federal Crown corporations
• private businesses necessary to the operation of a federal act
1-4 Stakeholders for payroll administration within the company are all employees, as well
as accounting, human resources and management.
1-5 External stakeholders for payroll administration include the Canada Revenue
Agency, Revenue Quebec, provincial/territorial agencies, courts, unions, pension
administrators, group benefit insurance carriers, charities and any other party
for which there are deductions from the employees’ wages.
Suggested Exercises:
1-1 The seven criteria should be discussed with the class, depending on what
personal information the instructor is willing to share. In most situations the
instructor will be an employee.
1-2 The different criteria used in Quebec should be compared to the Canada
Revenue Agency. Discussions should lead to students to understand that the
differences are more semantic than substantive and either set of criteria will
likely lead to the same determination.
1-3 The exercise is expected to entice a variety of different opinions to be expressed
as to why each industry is of the “national interest”. Responses will vary by class.
1-4 As education is provincial responsibility it is expected that all schools will fall
under provincial or territorial jurisdiction.
1-5 The employer challenges in administering the Social Insurance Number identified
by students will vary widely based on individual experience and work knowledge.
Emphasis should be placed on the initial request, monitoring temporary numbers
and maintaining confidentiality.
1-6 This exercise will provide for discussion of internal and external stakeholders for
the payroll process. Internal parties should include employees, business owners
and managers, as well as departments such as accounting, human resources and
information technology. External stakeholders list should include the Canada
Revenue Agency, Service Canada, courts, unions and benefit providers.
Dryden 2025 Release: Solutions Manual Chapter 1
©2025 Copyright
2
,Assessment Questions:
1-1 d) All of the above
1-2 b) The worker can hire assistants
1-3 d) Contact the Canada Revenue Agency for a ruling.
1-4 a) Three days
1-5 c) Request the employee provide card expiry date
1-6 a) Banking
1-7 c) Credit Unions
1-8 d) National retailer
1-9 c) Human resources
1-10 a) Canada Revenue Agency
Dryden 2025 Release: Solutions Manual Chapter 1
©2025 Copyright
3
, Chapter 2
Labour and Employment
Solutions to Questions
Review Questions:
2-1 The criteria used to determine the applicable jurisdiction for employment standards will
depend on the employer’s jurisdiction as covered in chapter 1 and the location where
the work is performed.
2-2 The most recent employment standards to be introduced in most jurisdictions include
reservist leave, organ donation leave, leave of absence when a child has disappeared or
dies as a result of a criminal action.
2-3 Employers may provide for additional employment benefits or betting working
conditions than required under employment standards legislation. The legislation
provides for the minimum condition or benefit that must be provided to the employee.
2-4 Union agreements may contain provision that are more generous than employment
standards and therefore must be honoured by the employer. Should the union
agreement provide less benefit to the employee than the legislated standard than the
standard must be honoured by the employer.
2-5 If an employer wants to establish a policy that will impact employees in multiple
jurisdictions then the policy must meet the most generous standard of the jurisdictions.
Suggested Exercises:
2-1 This exercise can be used as a major assignment for each student to be given a different
province/territory, or an in-class activity. The following template may be a useful
starting point, the answers will vary based on the standards in place when the research
is done.
Assignment is worth ___% of total grade.
Dryden 2025 Release: Solutions Manual Chapter 2
©2025 Copyright
1
