Payroll Compliance Legislation
Chapter 04 Practice Exam
2026/2027 Updated Verified
Questions and Solutions A+
Pass Guaranteed
1. Gross taxable income
- ANS - monies from which statutory deductions must be
withheld; in CRA documents, also called: "gross
remuneration"
2. net taxable income
- ANS - moneys from which statutory deductions must be
withheld; in CRA documents, also called: "remuneration
subject to tax deductions as source" or "taxable
remuneration"
3. pay subject to income tax
- ANS - salary, wages, overtime, retroactive payments,
commissions, wages in lieu of notice, bonuses, vacation
pay, gratuities, pensions, retiring allowances, severance
, pay, death benefits, and the value of any taxable benefits
and allowances
4. tax deductible amounts
- ANS - employee contributions to RPP and RRSP, union
dues (outside Quebec), living in a prescribed zone, and
other, as authorized by the CRA
5. basic personal amount
- ANS - the basic tax credit each Canadian resident
receives
6. TD1
- ANS - Personal Credits Tax Return form: form completed
by an employee to list additional tax credits beyond the
basic personal amount; used by employer to determine
the amount of federal or provincial/territorial income tax
to deduct from income
7. TD1-WS
- ANS - the Worksheet for the Personal Tax Credits Return;
use to calculate partial claim amounts on the TD1 for age,
caregiver, and infirm dependent 18 or older; this form is
kept by the employee and not filed with the employer
Chapter 04 Practice Exam
2026/2027 Updated Verified
Questions and Solutions A+
Pass Guaranteed
1. Gross taxable income
- ANS - monies from which statutory deductions must be
withheld; in CRA documents, also called: "gross
remuneration"
2. net taxable income
- ANS - moneys from which statutory deductions must be
withheld; in CRA documents, also called: "remuneration
subject to tax deductions as source" or "taxable
remuneration"
3. pay subject to income tax
- ANS - salary, wages, overtime, retroactive payments,
commissions, wages in lieu of notice, bonuses, vacation
pay, gratuities, pensions, retiring allowances, severance
, pay, death benefits, and the value of any taxable benefits
and allowances
4. tax deductible amounts
- ANS - employee contributions to RPP and RRSP, union
dues (outside Quebec), living in a prescribed zone, and
other, as authorized by the CRA
5. basic personal amount
- ANS - the basic tax credit each Canadian resident
receives
6. TD1
- ANS - Personal Credits Tax Return form: form completed
by an employee to list additional tax credits beyond the
basic personal amount; used by employer to determine
the amount of federal or provincial/territorial income tax
to deduct from income
7. TD1-WS
- ANS - the Worksheet for the Personal Tax Credits Return;
use to calculate partial claim amounts on the TD1 for age,
caregiver, and infirm dependent 18 or older; this form is
kept by the employee and not filed with the employer
