Payroll Fundamentals 1 -
Chapter 2 Comprehensive
Questions (Frequently Most
Tested) with Verified Answers
Renumeration - Answer: Compensation or pay for services performed
Employment income - Answer: - Earnings
- Allowances
- Benefits
- Taxable expense reimbursements
Earnings - Answer: Dollar amounts the employer pays an employee for the work they perform.
Earnings can be paid as: - Answer: - a salary
- a rate for each hour worked
- a disability payment for time off work due to illness
- a payment for vacation time
- a premium payment for hours worked on shift
- a premium payment for overtime hours worked
Benefits - Answer: Dollar values attributed to something the employer has either provide it to an
employee or paid for on an employee's behalf.
Allowances - Answer: Additional dollar amounts paid to employees for the use, or anticipated use, of
their personal property for business purposes.
Expense Reimbursements - Answer: Dollar amounts paid to the employee to cover expenses that they
incurred while performing their job; they are not considered in the calculation of employees pay.
, Regular payment - Answer: Has an established frequency, such as weekly paid salary or wages.
Non-regular payment - Answer: Has no established frequency, for example, a bonus or a retroactive
adjustment.
Jurisdictions which do not require a specific frequency of pay - Answer: Federal (Canada Labour Code,
Part III) and Ontario.
Choosing a pay period frequency - Answer: As long as the minimum standards are met, they can select
frequency that best suits their organization.
Establishing different pay frequencies - Answer: Can we established within an organization for different
groups of employees.
Common pay period frequencies - Answer: - Weekly (52 pay periods per year)
- Biweekly (26 pay periods per year)
- Semi monthly (24 pay periods per year)
- Monthly (12 pay periods per year)
Regular earnings - Answer: The dollar amount paid to employees on a pay period bases for the
performance of their day-to-day duties.
Employment Standards legislates in each jurisdiction - Answer: - Minimum-wage
- Overtime rates
- Vacation pay
Salary - Answer: Fixed amount of earnings paid to an employee per pay period.
Wages - Answer: Earnings which are based on the amount of time worked, usually at a rate per hour or
per day.
Chapter 2 Comprehensive
Questions (Frequently Most
Tested) with Verified Answers
Renumeration - Answer: Compensation or pay for services performed
Employment income - Answer: - Earnings
- Allowances
- Benefits
- Taxable expense reimbursements
Earnings - Answer: Dollar amounts the employer pays an employee for the work they perform.
Earnings can be paid as: - Answer: - a salary
- a rate for each hour worked
- a disability payment for time off work due to illness
- a payment for vacation time
- a premium payment for hours worked on shift
- a premium payment for overtime hours worked
Benefits - Answer: Dollar values attributed to something the employer has either provide it to an
employee or paid for on an employee's behalf.
Allowances - Answer: Additional dollar amounts paid to employees for the use, or anticipated use, of
their personal property for business purposes.
Expense Reimbursements - Answer: Dollar amounts paid to the employee to cover expenses that they
incurred while performing their job; they are not considered in the calculation of employees pay.
, Regular payment - Answer: Has an established frequency, such as weekly paid salary or wages.
Non-regular payment - Answer: Has no established frequency, for example, a bonus or a retroactive
adjustment.
Jurisdictions which do not require a specific frequency of pay - Answer: Federal (Canada Labour Code,
Part III) and Ontario.
Choosing a pay period frequency - Answer: As long as the minimum standards are met, they can select
frequency that best suits their organization.
Establishing different pay frequencies - Answer: Can we established within an organization for different
groups of employees.
Common pay period frequencies - Answer: - Weekly (52 pay periods per year)
- Biweekly (26 pay periods per year)
- Semi monthly (24 pay periods per year)
- Monthly (12 pay periods per year)
Regular earnings - Answer: The dollar amount paid to employees on a pay period bases for the
performance of their day-to-day duties.
Employment Standards legislates in each jurisdiction - Answer: - Minimum-wage
- Overtime rates
- Vacation pay
Salary - Answer: Fixed amount of earnings paid to an employee per pay period.
Wages - Answer: Earnings which are based on the amount of time worked, usually at a rate per hour or
per day.
