Midterm Practice Exam 2026/2027 Updated
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1. Objective of the Payroll Function
- ANS - Pay employees accurately and on time, in
compliance with legislative requirements for a full annual
payroll cycle
2. Payroll definition
- ANS - is the process of paying employees in exchange
for the services they perform.
3. 4 Possible Meanings of Payroll
- ANS - 1. The department that administers the payroll
4. 2. The total number of people employed by an
organization
5. 3. The wages and salaries paid out in a year
6. 4. A list of persons to be paid and the amount due to each
,7. Legislation defintion
- ANS - refers to laws enacted by a legislative body. In
Canada, there are many legislative sources that payroll
professionals must comply with at two separate levels -
the federal and the provincial/territorial governments
8. Compliance definition
- ANS - is the observance of official requirements
9. Legislative means having the powers to...
- ANS - create laws
10. Legislative requirements are termed ________
- ANS - statutory (meaning they are enacted, created, or
regulated by a statute, a law enacted by the legislative
branch of a government)
11. Payroll professionals must therefore ensure the
organization is compliant with ____________
- ANS - all stakeholder requirements
12. è There are also compliance requirements for other
non-governmental stakeholders which would include: (2)
- ANS - o Union collective agreements
• Group insurance policies
, 13. A Payroll Practitioner's responsibilities will differ
depending on: (4)
- ANS - - Size of the organization
- The number of jurisdictions in which they pay
- The reporting structure under which they
work
- Whether there are other related departments
in the organization (such as HR, Finance, and
Administration)
14. 3 levels in a payroll department within a large
organization
- ANS - - payroll administrators
- payroll coordinators
- payroll managers
15. Payroll Practitioners should know the following to
effectively perform their duties: (3)
- ANS - 1. Payroll compliance legislation (the Income Tax
Act, the Employment Insurance Act, the Canada Pension
Plan Act, Employment/Labour Standards, privacy
legislation, Workers' Compensation and
provincial/territorial payroll-specific legislation)
16. 2. payroll processes (the remuneration and
deduction components of payroll)