Question 1

The cost of payroll is simply the total wages paid to employees.

Accepted Answer

A) True 
 B)False  False

Question 2

Prior to 2019 the following province did not assess an Employer Health Tax:

Accepted Answer

A)  British Columbia 
B)  Ontario 
C)  Manitoba 
D)  Quebec 
E)  Newfoundland A

Question 3

An employee earns $55,000 per year and is paid on a semi-monthly pay schedule. The employee enjoys the benefit of a company paid cell phone for personal use (cost is $150 per month) and receives 6% vacation pay on each payment. This pay cycle included 15 hours of approved overtime worked over the normal 40 hour work week and a reimbursement for travel expenses in the amount of $434.20. The employee contributes 5% of their regular wages to a Registered Retirement Savings Plan each pay cycle.
-The employee is a Claim Code 1 both Federally and Provincially and works in Ontario. Use the PDOC to calculate Provincial and Federal tax deductions assuming the date of pay is March 7, 2020.

Accepted Answer

$\begin{array}{|l|r|}
\hline\text{ Federal tax:} &  \$ 394.93  \
\hline\text{ Ontario tax:} &  \$ 192.28  \
\hline \text{Total: }&  \$ 587.21 \
\hline
\end{array}$

Question 4

The rate of 1.58% for Employment Insurance Premiums will never change.

Accepted Answer

A) True 
 B)False

Question 5

Employees in Quebec contribute to the Quebec Pension Plan at a rate of ____.

Accepted Answer

A)  5.70% 
B)  4.95% 
C)  0.559% 
D)  1.54% 
E)  1.88%

Question 6

An employee earns $55,000 per year and is paid on a semi-monthly pay schedule. The employee enjoys the benefit of a company paid cell phone for personal use (cost is $150 per month) and receives 6% vacation pay on each payment. This pay cycle included 15 hours of approved overtime worked over the normal 40 hour work week and a reimbursement for travel expenses in the amount of $434.20. The employee contributes 5% of their regular wages to a Registered Retirement Savings Plan each pay cycle.
-Calculate the net pay for this employee. Be sure to list all of the deductions from the employee's pay for this pay cycle. (Note: if you do not have access to the PDOC the Federal Tax deduction = $384.75 and Provincial Tax deduction = $190.50)
 Based on 2020 rates and T4032 tables.

Accepted Answer

The answer of An employee earns $55,000 per year and...

Question 7

An employee earns $55,000 per year and is paid on a semi-monthly pay schedule. The employee enjoys the benefit of a company paid cell phone for personal use (cost is $150 per month) and receives 6% vacation pay on each payment. This pay cycle included 15 hours of approved overtime worked over the normal 40 hour work week and a reimbursement for travel expenses in the amount of $434.20. The employee contributes 5% of their regular wages to a Registered Retirement Savings Plan each pay cycle.
-Calculate the Gross Taxable Earnings.
 Gross Taxable earnings is the same as Pensionable Earnings but adding back in any payments related to severance and retiring allowances. As there are no severance or retiring allowances for this employee, the Gross Taxable Earnings are the same as the Pensionable Earnings.

Accepted Answer

The answer of An employee earns $55,000 per year and...

Question 8

An employee earns $55,000 per year and is paid on a semi-monthly pay schedule. The employee enjoys the benefit of a company paid cell phone for personal use (cost is $150 per month) and receives 6% vacation pay on each payment. This pay cycle included 15 hours of approved overtime worked over the normal 40 hour work week and a reimbursement for travel expenses in the amount of $434.20. The employee contributes 5% of their regular wages to a Registered Retirement Savings Plan each pay cycle.
-Calculate the Gross Earnings.

Accepted Answer

The answer of An employee earns $55,000 per year and...

Question 9

Employees in Quebec must also contribute an additional premium of ____ on insurable earnings to the Quebec Parental Insurance Plan.

Accepted Answer

A)  5.25% 
B)  4.95% 
C)  0.494% 
D)  1.54% 
E)  1.88%

Question 10

An employee earns $55,000 per year and is paid on a semi-monthly pay schedule. The employee enjoys the benefit of a company paid cell phone for personal use (cost is $150 per month) and receives 6% vacation pay on each payment. This pay cycle included 15 hours of approved overtime worked over the normal 40 hour work week and a reimbursement for travel expenses in the amount of $434.20. The employee contributes 5% of their regular wages to a Registered Retirement Savings Plan each pay cycle.
-Calculate the Net Taxable Earnings. Explain what deductions are allowed.
 Net Taxable Earnings are Gross Taxable Earnings less employee contributions to a Registered Pension Plan, a Registered Retirement Savings Plan, union dues, amounts claimed on the TD1 for living in a prescribed zone and any other amounts authorized in writing by the Canada Revenue Agency.

Accepted Answer

The answer of An employee earns $55,000 per year and...

Question 11

Calculate the Workers' Compensation premium owing for an employer in Ontario with assessable earnings equal to $295,000 annually in the agricultural Industry rate category (assume no employees exceed the maximum assessable earnings for the year).

Accepted Answer

The answer of Calculate the Workers' Compensation premium owing for...

Question 12

Employees in Quebec contribute Employment Insurance premiums at a rate of ____.

Accepted Answer

A)  5.25% 
B)  4.95% 
C)  0.559% 
D)  1.20% 
E)  1.88%

Question 13

Employees in provinces other than Quebec must contribute additional premiums on insurable earnings over and above the Employment Insurance rate of 1.58% for their provincial Parental Insurance Plans.

Accepted Answer

A) True 
 B)False

Exam 3: Calculation of Net Pay , Employer Payroll Taxes and Premiums

The cost of payroll is simply the total wages paid to employees.

Prior to 2019 the following province did not assess an Employer Health Tax:

The rate of 1.58% for Employment Insurance Premiums will never change.

Employees in Quebec contribute to the Quebec Pension Plan at a rate of ____.

Employees in Quebec must also contribute an additional premium of ____ on insurable earnings to the Quebec Parental Insurance Plan.

Calculate the Workers' Compensation premium owing for an employer in Ontario with assessable earnings equal to $295,000 annually in the agricultural Industry rate category (assume no employees exceed the maximum assessable earnings for the year).

Employees in Quebec contribute Employment Insurance premiums at a rate of ____.

Employees in provinces other than Quebec must contribute additional premiums on insurable earnings over and above the Employment Insurance rate of 1.58% for their provincial Parental Insurance Plans.