Payroll Fundamentals 1 Test Questions and Correct Answers

Payroll Fundamentals 1 Test Questions and
Correct Answers
Question 1
Wage-loss replacement plans (WLRP)
Correct Answer
An agreement between an employer and employees, or between an employer and a
group or association of employees, under which the employees are compensated
with payment on a periodic basis or the loss of employment income as a result of
sickness, disability, maternity, or injury.



Question 2
Block 3 of the ROE
Correct Answer
The employer's payroll reference number (optional)



Question 3
Block of the ROE
Correct Answer
Employer's name and address



Question 4
Code E of the ROE
Correct Answer
Quit, used when the employee initiates the termination of employment. If using the
ROE Web choose the appropriate reason from the drop-down (Quit, follow spouse,
retirement, school, take another job, health reasons)




Page 1 of 35

,Question 5
Registered Retirement Savings Plan (RRSP) contributions are non-taxable if:
Correct Answer
- The employee cannot withdraw the amounts from the group RRSP until they retire
or cease to be employed
- are only allowed to withdraw funds under the Home Buyers' Plan Lifelong
Learning Plan



Question 6
Block 6 of the ROE
Correct Answer
Pay period type. Choose a pay period type from the drop-down menu



Question 7
Electronic ROEs can be submitted to Service Canada using one of three methods:
Correct Answer
- Through the ROE Web using compatible payroll software to upload ROEs from the
organization's payroll system
- through ROE Web manually entering data online using Service Canada's website
- through Secure Automated Transfer(SAT), which may be performed by a payroll
service provider on a client's behalf using bulk transfer technology



Question 8
Allowances
Correct Answer
Additional dollar amounts paid to employees for the use, or anticipated use, of their
personal property for business purposes



Question 9
Tax on unreasonable car allowances
Correct Answer
Included in an employee's income and subject to statutory deductions




Page 2 of 35

,Question 10
Block 15b insurable earnings (ROE) for commission employees
Correct Answer
The employee's average weekly earnings are determined as follow:
- take the employee's total insurable earnings paid within the last 52 weeks or since
the date of employment
- divide the insurable earnings by the number of insurable weeks (max 52)
- round the above amount to the nearest penny
- multiply this number by 27
- add any insurable amounts the employee received because of the termination that
are reported in Block 17



Question 11
Block 1 of the ROE
Correct Answer
Serial number. Each electronic ROE is automatically assigned with a serial number
once it is submitted



Question 12
Order of calculating statutory deductions for regular payments:
Correct Answer
- CPP
- EI
- QPIP
- Fed & Prov Tax
- NWT/NT Payroll Tax



Question 13
Death Benefits
Correct Answer
a discretionary payment made by an employer on the death of an employee, in
recognition of the employee's service




Page 3 of 35

, Question 14
Taxable Benefit: Fees paid to employee for employee assistance plan
Correct Answer
Considered a cash taxable benefit



Question 15
The following payments are required on termination of employment
Correct Answer
- wages in lieu of notice
- vacation pay
- severance pay



Question 16
Block 15A of the ROE
Correct Answer
Total insurable hours



Question 17
Code A of the ROE
Correct Answer
Shortage of work



Question 18
Overtime
Correct Answer
Time worked beyond the normal work day or work week




Page 4 of 35