PAYROLL FUNDAMENTALS 1 (PFP1) | 2026/2027 CURRENT EDITION
| QUESTIONS AND VEDRIFIED ANSWERS LATEST VERSION
Payroll Fundamentals 1 (PFP1)
Q: What governs minimum workplace standards in Canada? ANSWER
Provincial/territorial Employment Standards Acts (or Canada Labour
Code for federally regulated).
Q: What is the standard work week in most Canadian jurisdictions?
ANSWER 40 hours.
Q: What is the standard daily hours in most jurisdictions? ANSWER 8
hours.
Q: How is overtime usually calculated? ANSWER 1.5 times the regular
hourly rate.
Q: Does overtime apply to salaried employees? ANSWER Yes, unless a
specific exemption applies.
Q: What is the federal overtime threshold? ANSWER Over 8 hours/day
or 40 hours/week.
Q: Are meal breaks paid? ANSWER Generally no, if they are 30 minutes
or more and the employee is completely relieved of duties.
Q: What is a rest period? ANSWER A paid break usually 10 to 15 minutes
taken during work hours.
Q: Are employers required to give coffee breaks federally? ANSWER
No, the Canada Labour Code does not mandate them.
,Q: What is "on-call" time? ANSWER Time where the employee is not
working but must be available to be called in.
Q: Is on-call time generally payable? ANSWER No, unless the
employee's freedom is severely restricted.
Q: What happens if an employee is called in for 2 hours but only works
30 minutes? ANSWER Most jurisdictions require a minimum 2 or 3-
hour reporting pay.
Q: What is a "split shift"? ANSWER A work schedule divided into two or
more separate periods in one day.
Q: Are split shifts allowed? ANSWER Yes, but some provinces restrict
the total time between shifts.
Q: What is minimum wage? ANSWER The lowest legal hourly rate an
employer can pay an employee.
Q: Can an employer pay a lower minimum wage to liquor servers?
ANSWER Yes, in some provinces (e.g., Ontario, BC).
Q: Can an employer deduct for broken dishes or cash shortages?
ANSWER Generally no, deductions cannot reduce pay below minimum
wage.
Q: What is a "salary deferral"? ANSWER An agreement to hold paying
part of the salary to a later date; generally illegal under ESAs.
Q: What is compassionate care leave? ANSWER Unpaid leave to care
for a gravely ill family member with a significant risk of death.
Q: How long is federal compassionate care leave? ANSWER Up to 28
weeks.
Q: What is critical illness leave? ANSWER Leave for parents of a
critically ill child (up to 37 weeks) or adults caring for critically ill adults
(up to 17 weeks).
Q: What is bereavement leave? ANSWER Leave taken due to the death
of an immediate family member.
Q: Is bereavement leave paid? ANSWER Usually unpaid under ESAs, but
many employers offer paid days.
, Q: What is family responsibility leave? ANSWER Short unpaid leave for
illness, medical appointments, or urgent family matters.
Q: What is domestic violence leave? ANSWER Leave for employees
experiencing domestic violence to seek help.
Q: Is domestic violence leave paid? ANSWER It varies; some provinces
offer a mix of paid and unpaid days.
Q: What is jury duty leave? ANSWER Unpaid leave required by law
when an employee is summoned for jury duty.
Q: Can an employer fire an employee for taking jury duty? ANSWER No,
this is illegal.
Q: What is maternity leave? ANSWER Unpaid leave for pregnant
employees, usually up to 17 or 18 weeks depending on jurisdiction.
Q: When should maternity leave begin? ANSWER Typically no earlier
than a set number of weeks before the expected birth date.
Q: What is parental leave? ANSWER Unpaid leave for new parents
(birth, adoption, or surrogacy).
Q: How long is parental leave federally? ANSWER Up to 63 weeks for
birth mothers, up to 62 weeks for other parents.
Q: Can maternity and parental leave be taken consecutively? ANSWER
Yes.
Q: Must an employee give notice before taking maternity/parental
leave? ANSWER Yes, usually written notice at least 4 weeks in
advance.
Q: Can an employee work another job while on maternity/parental
leave? ANSWER Generally no, unless approved by the employer.
Q: What happens to benefits during a statutory leave? ANSWER The
employer must continue them as if the employee was working.
Q: Who pays the premiums for benefits during an unpaid leave?
ANSWER The employee (if they wish to maintain them), but the
employer facilitates the payment.
Q: What is a "right to recall" after leave? ANSWER The right to be
reinstated to the same or a comparable job.
| QUESTIONS AND VEDRIFIED ANSWERS LATEST VERSION
Payroll Fundamentals 1 (PFP1)
Q: What governs minimum workplace standards in Canada? ANSWER
Provincial/territorial Employment Standards Acts (or Canada Labour
Code for federally regulated).
Q: What is the standard work week in most Canadian jurisdictions?
ANSWER 40 hours.
Q: What is the standard daily hours in most jurisdictions? ANSWER 8
hours.
Q: How is overtime usually calculated? ANSWER 1.5 times the regular
hourly rate.
Q: Does overtime apply to salaried employees? ANSWER Yes, unless a
specific exemption applies.
Q: What is the federal overtime threshold? ANSWER Over 8 hours/day
or 40 hours/week.
Q: Are meal breaks paid? ANSWER Generally no, if they are 30 minutes
or more and the employee is completely relieved of duties.
Q: What is a rest period? ANSWER A paid break usually 10 to 15 minutes
taken during work hours.
Q: Are employers required to give coffee breaks federally? ANSWER
No, the Canada Labour Code does not mandate them.
,Q: What is "on-call" time? ANSWER Time where the employee is not
working but must be available to be called in.
Q: Is on-call time generally payable? ANSWER No, unless the
employee's freedom is severely restricted.
Q: What happens if an employee is called in for 2 hours but only works
30 minutes? ANSWER Most jurisdictions require a minimum 2 or 3-
hour reporting pay.
Q: What is a "split shift"? ANSWER A work schedule divided into two or
more separate periods in one day.
Q: Are split shifts allowed? ANSWER Yes, but some provinces restrict
the total time between shifts.
Q: What is minimum wage? ANSWER The lowest legal hourly rate an
employer can pay an employee.
Q: Can an employer pay a lower minimum wage to liquor servers?
ANSWER Yes, in some provinces (e.g., Ontario, BC).
Q: Can an employer deduct for broken dishes or cash shortages?
ANSWER Generally no, deductions cannot reduce pay below minimum
wage.
Q: What is a "salary deferral"? ANSWER An agreement to hold paying
part of the salary to a later date; generally illegal under ESAs.
Q: What is compassionate care leave? ANSWER Unpaid leave to care
for a gravely ill family member with a significant risk of death.
Q: How long is federal compassionate care leave? ANSWER Up to 28
weeks.
Q: What is critical illness leave? ANSWER Leave for parents of a
critically ill child (up to 37 weeks) or adults caring for critically ill adults
(up to 17 weeks).
Q: What is bereavement leave? ANSWER Leave taken due to the death
of an immediate family member.
Q: Is bereavement leave paid? ANSWER Usually unpaid under ESAs, but
many employers offer paid days.
, Q: What is family responsibility leave? ANSWER Short unpaid leave for
illness, medical appointments, or urgent family matters.
Q: What is domestic violence leave? ANSWER Leave for employees
experiencing domestic violence to seek help.
Q: Is domestic violence leave paid? ANSWER It varies; some provinces
offer a mix of paid and unpaid days.
Q: What is jury duty leave? ANSWER Unpaid leave required by law
when an employee is summoned for jury duty.
Q: Can an employer fire an employee for taking jury duty? ANSWER No,
this is illegal.
Q: What is maternity leave? ANSWER Unpaid leave for pregnant
employees, usually up to 17 or 18 weeks depending on jurisdiction.
Q: When should maternity leave begin? ANSWER Typically no earlier
than a set number of weeks before the expected birth date.
Q: What is parental leave? ANSWER Unpaid leave for new parents
(birth, adoption, or surrogacy).
Q: How long is parental leave federally? ANSWER Up to 63 weeks for
birth mothers, up to 62 weeks for other parents.
Q: Can maternity and parental leave be taken consecutively? ANSWER
Yes.
Q: Must an employee give notice before taking maternity/parental
leave? ANSWER Yes, usually written notice at least 4 weeks in
advance.
Q: Can an employee work another job while on maternity/parental
leave? ANSWER Generally no, unless approved by the employer.
Q: What happens to benefits during a statutory leave? ANSWER The
employer must continue them as if the employee was working.
Q: Who pays the premiums for benefits during an unpaid leave?
ANSWER The employee (if they wish to maintain them), but the
employer facilitates the payment.
Q: What is a "right to recall" after leave? ANSWER The right to be
reinstated to the same or a comparable job.
