Payroll Fundamentals 1 Midterm QUESTIONS AND ANSWERS GRADE A+ SOLUTIONS

Commencement package (Ch.1) -Organization specific forms (personal information forms) -Government forms (federal and provincial personal tax credits return) -Benefit forms (insurance enrollment forms) Hiring form (ch.1) May include information on their position such as department, manager, start date, salary/hourly wage, and benefit entitlement Information that must be provided to employees (ch.1) -Employee name -Date of pay period -Rates of pay and hours of work at each rate -Gross earnings -Itemized deductions -Net pay TD1- WS is used to calculate partial claim amounts for... (ch.1) -Age -Canada caregiver amount for eligible dependent or spouse or common-law partner -Canada caregiver amount for dependent(s) age 18 or over Federal TD1, Provincial/territorial TD1, and Quebec TP-1015.3-V require... (ch.1) -Name -Date of birth -Social insurance number Other credits employees can claim on their Federal and Provincial/Territorial TD1 to lower taxes (ch.1) -Being a caregiver -Being over 65 -Receiving a pension -Being or supporting a student in post-secondary studies -Being disabled -Supporting a spouce -Living alone (Quebec) -Having children under 18 (Saskatchewan and Yukon) Do you have to claim basic personal provincial/territorial credits? (ch.1) -No, if only doing basic -Yes, if claiming children under 18 (Sakatchewan and Yukon) -Yes, always (Quebec) Employers should review TD1 and TP-1015.3-V forms to ensure (ch.2) -Correct employee name, Date of birth, Address, and SIN -Correct amounts on the form -Amounts claimed are totaled correctly -Form does not contain obvious false statements -The form is signed a dated What certain information must appear on an employee's statement of wages? (ch.2) -Name -Rate of pay and hours worked at each rate -Date of pay period -Gross and net pay -Itemized deductions Renumeration (ch.2) Employee received compensation or pay for the services they perform -AKA employee income when employer-employee relationship exists Employee income can be categorized into what? (ch.2) -Earnings -Allowances -Benefits -Taxable expense reimbursements Earnings can be paid as... (ch.2) -Salary -Rate for each hour worked -Rate per piece of goods produced or picked -Disability payment for time off due to illness -Payment for vacation time -Premium payment for overtime -Premium payment for hours worked on a shift Earnings are... (ch.2) -Pensionable -Insurable -Taxable ...therefore subject to all statutory deductions Define allowances (ch.2) The additional dollar amounts paid to employees for the use, or anticipated use of their personal property for business purposes What are the common types of allowances? (ch.2) -Car -Meals -Uniforms -Safety shoes or other types of clothing Allowances are... (ch.2) -Not considered income (under certain conditions) ...therefore not subject to statutory withholdings Define benefits (ch.2) Dollar values attributed to something the employer has either provided to an employee or paid for on behalf of the employee Benefits are... (ch.2) -Not included in income (under certain circumstances) ...therefore not subject to statutory dedcuctions Define expense reimbursements (ch.2) Dollar amounts paid to employees to cover expenses that they incur while performing their job Expense reimbursements are.. (ch.2) -Usually submitted through the accounting department ...therefore not considered in the calculation of employee income -Can go through payroll, in which case they are not subject to statutory deductions, but WILL affect net pay If a reimbursement is for personal living expenses it is... (ch.2) -Taxable to the employee -Included in income -Subject to statutory deductions What are the factors that affect selecting frequency of pay periods (ch.2) -Accounting cycles -Payment delays -Pay period frequencies that have been negotiated Define regular earnings (ch.2) The dollar amount paid to employees on a pay period basis for the performance of their day-to-day duties List the types of regular earnings (ch.2) -Salary -Hourly wages -Piecework -Self-insured disability payments -Vacation pay -Overtime -Shift premiums Define salary, and what is the formula for calculating it? (ch.2) -A fixed amount of earnings paid to an employee per pay period Annual salary CONTINUED.......