Payroll Fundamentals 1 exam questions and answers

The maximum employee and employer combined contribution limit to a Defined Contribution Pension Plan for 2022 is: - 30,780.00 Select the order of priority for withholding payroll deductions from an employee's earnings. - Statutory deductions, legal deductions, union deductions, company-compulsory deductions, voluntary deductions Registered Retirement Savings Plan contribution limits are based on the lesser of: 18% of the employee's previous year's earned income or the maximum annual Registered Retirement Savings Plan limit less pension adjustments, less past service pension adjustments, plus any pension adjustment reversals, plus any unused contribution room carried forward from previous years. - True A Requirement to Pay is issued by: - Canada Revenue Agency and Revenu Québec Which type of retirement plan would result in a taxable benefit for the employee if the employer made the contribution? - Registered Retirement Savings Plan What type of garnishment is issued when an employee's creditor wins a judgement in small claims court to collect an outstanding debt? - Garnishment Order If the garnishment percentage is not clearly stated in the Third Party Demand document, the employer must: - contact Canada Revenue Agency and/or Revenu Québec immediately for a written response Which of the following is not correct? - A Registered Retirement Savings Plan is a pension plan If an employee's regular net pay including compulsory and voluntary deductions is not enough to satisfy a required garnishment, what must the employer do? - Arrange with the employee to reduce or suspend voluntary deductions Severance Pay - Under the Canada Labour Code, Part III, employees who have 12 months of continuous service are entitled to the greater of 2 days' wages at the regular rate, excluding overtime, for each completed year of employment or 5 days' wages at the regular rate, excluding overtime. $1,985.00 multiplied by 24 pay periods equals an annual salary of $47,640.00. The annual salary divided by 260 days equals a daily salary of $183.23. The daily salary multiplied by 8 days of entitlement equals a severance pay of $1,465.84. The eligible portion of a retiring allowance is: - the portion of a retiring allowance eligible to be transferred to a Registered Retirement Savings Plan or registered pension plan with no income tax withholding at source What is the maximum number of weeks in severance an employee in Ontario can receive? - 26 weeks of regular wages Except for legislated severance pay, when are retiring allowances paid? - At the discretion of the employer A retiring allowance does not include: - accumulated overtime Calculate the Employment Insurance premium on legislated wages in lieu of notice of $1,670.00, paid to an employee in Québec who is paid on a weekly basis. - $20.04 Veronica is employed in Ontario at a national airline, which is governed under the Canada Labour Code, Part III. Her employment is being terminated after 7 years and 2 months of service. She was paid $900.00 weekly. Her employer's annual payroll is 5.5 million. Calculate the number of days Veronica is entitled to for severance pay. - 14 Kyla worked for Electronic Charts from September 15, 1985 until her employment was terminated on March 20, 2006. Kyla was not a member of the organization's pension plan. Kyla's employer paid her a $68,000.00 retiring allowance. Calculate the non-eligible portion of the retiring allowance. - $40,000.00