Payroll 1 – Quiz Latest Update with Verified Answers

Payroll 1 – Quiz Latest Update with Verified Answers Can an employer add optional deductions to an employee's paycheck without consent? False. Optional deductions require written consent from the employee. Examples include donations to charities, parking fees, and contributions to employee-sponsored social funds. Employees can choose to opt out of these deductions. Can an employer make compulsory deductions from your paycheck? True. Employers can make compulsory deductions, such as contributions to a company pension plan (whether defined benefit or contribution plan) or union dues, if these are part of the collective agreement. Must a charity be registered with the CRA to be an optional employee deduction? False. While a charity does not have to be registered with the CRA to be an optional deduction, employees will not receive a donation receipt for tax purposes if the charity is not registered. Do you have to enforce a legal order from a Small Claims Court? False. Any legal order from Small Claims, Provincial, or Federal Court must be enforced. Employers are responsible for making the payment, regardless of whether they deduct the amount from the employee's pay. Who can issue a garnishment order, also known as a legal deduction? Legal deductions can be issued by: - The CRA for outstanding taxes - A court for child support or creditor rulings - Unions, as part of union agreements, where employees must join the union and pay dues Can an employer use non-statutory deductions to fund a luxury vehicle for the payroll manager? False. Deductions must be held in trust. If the CRA audits payroll, it conducts a Trust Audit. Misuse of these funds can result in serious consequences, including criminal charges for company owners and officials. Are statutory deductions limited to Income Tax, CPP/QPP, and EI? False. While Income Tax, CPP/QPP, and EI are statutory deductions, WCB/WSIB is also a legal requirement but applies only to specific industries. For example, accounting firms may opt out of WCB as the workplace is low-risk for injuries.