Payroll Fundamentals 1 2025/2026 Exam
Questions with 100% Correct Answers |
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RQ and CRA define a car allowance as reasonable if: - 🧠ANSWER ✔✔- The
allowance is based solely on business kilometres driven in a calendar year
- the amount provided is based on the following government-prescribed reasonable
guidelines
- $0.58 per km for the first 5,000 business km's in the year ($0,62 in the Yukon,
NWT & Nunavut)
- $0.51 thereafter ($0.56 for YK, NWT, NT)
- the employer does not reimburse the employee for expenses related to the same
use of the vehicle
Personal Driving includes: - 🧠ANSWER ✔✔- vacation travel
- driving to conduct personal business
,- travel between home and work, even if the employer insists the employee drive
the vehicle home
Business driving includes: - 🧠ANSWER ✔✔- driving to existing and prospective
clients, points of call, and other office locations of the employer
- when an employee travels directly from home to a point of call, which is not the
employer's place of business where the employee regularly reports for work
- when the employees travels home directly from a point of call
Availability (automobiles) - 🧠ANSWER ✔✔The number of thirty-day periods that
the automobile is available to the employee for the current taxation year. The
employee has access to or control over the vehicle.
Automobile - 🧠ANSWER ✔✔A motor vehicle that is designed or adapted to
primarily carry individuals on highways and streets, and has seating capacity of not
more than the driver and eight passengers
If a gift or award is given to an employee in cash - 🧠ANSWER ✔✔The amount is
considered pensionable, insurable and taxable to the employee, subject to all
statutory deductions
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
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STATEMENT. ALL RIGHTS RESERVED
,Overtime meal allowance is considered non-taxable if (RQ): - 🧠ANSWER ✔✔-
overtime is done at the employer's request and is expected to last for at least two
consecutive hours
- overtime is done rarely or on an occasional basis
- the meal expenses are reimbursed upon presentation of receipts
- the meal expenses reimbursed or the value of the meal provided is reasonable
The four categories of employment income - 🧠ANSWER ✔✔- Earnings
- Allowances
- Benefits
- Taxable expense reimbursement
Earnings - 🧠ANSWER ✔✔Dollar amounts the employer pays an employee for the
work they perform
Types of earnings - 🧠ANSWER ✔✔- a salary
- a rate for each hour worked
- a rate per piece of goods produced or picked
- a disability payment for time off work due to illness
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
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STATEMENT. ALL RIGHTS RESERVED
, - a payment for vacation time
- a premium payment for overtime hours worked
- a premium payment for hours worked on shift
Allowances - 🧠ANSWER ✔✔Additional dollar amounts paid to employees for the
use, or anticipated use, of their personal property for business purposes
Benefits - 🧠ANSWER ✔✔Dollar values attributed to something the employer has
either provided to an employee or paid for on an employee's behalf
Expense Reimbursements - 🧠ANSWER ✔✔Dollar amounts paid to employees to
cover expenses that they incur while performing their job.
Regular payments - 🧠ANSWER ✔✔Have an established frequency, such as
weekly-paid salary or wages
Non-regular payments - 🧠ANSWER ✔✔payments that do not occur each pay
period, for example, a bonus or a retroactive adjustment
Salary - 🧠ANSWER ✔✔A fixed amount of money paid to an employee for each
pay period.
Salary per pay period - 🧠ANSWER ✔✔Annual salary / number of pay periods per
year
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
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STATEMENT. ALL RIGHTS RESERVED
Questions with 100% Correct Answers |
Latest Update
RQ and CRA define a car allowance as reasonable if: - 🧠ANSWER ✔✔- The
allowance is based solely on business kilometres driven in a calendar year
- the amount provided is based on the following government-prescribed reasonable
guidelines
- $0.58 per km for the first 5,000 business km's in the year ($0,62 in the Yukon,
NWT & Nunavut)
- $0.51 thereafter ($0.56 for YK, NWT, NT)
- the employer does not reimburse the employee for expenses related to the same
use of the vehicle
Personal Driving includes: - 🧠ANSWER ✔✔- vacation travel
- driving to conduct personal business
,- travel between home and work, even if the employer insists the employee drive
the vehicle home
Business driving includes: - 🧠ANSWER ✔✔- driving to existing and prospective
clients, points of call, and other office locations of the employer
- when an employee travels directly from home to a point of call, which is not the
employer's place of business where the employee regularly reports for work
- when the employees travels home directly from a point of call
Availability (automobiles) - 🧠ANSWER ✔✔The number of thirty-day periods that
the automobile is available to the employee for the current taxation year. The
employee has access to or control over the vehicle.
Automobile - 🧠ANSWER ✔✔A motor vehicle that is designed or adapted to
primarily carry individuals on highways and streets, and has seating capacity of not
more than the driver and eight passengers
If a gift or award is given to an employee in cash - 🧠ANSWER ✔✔The amount is
considered pensionable, insurable and taxable to the employee, subject to all
statutory deductions
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
2
STATEMENT. ALL RIGHTS RESERVED
,Overtime meal allowance is considered non-taxable if (RQ): - 🧠ANSWER ✔✔-
overtime is done at the employer's request and is expected to last for at least two
consecutive hours
- overtime is done rarely or on an occasional basis
- the meal expenses are reimbursed upon presentation of receipts
- the meal expenses reimbursed or the value of the meal provided is reasonable
The four categories of employment income - 🧠ANSWER ✔✔- Earnings
- Allowances
- Benefits
- Taxable expense reimbursement
Earnings - 🧠ANSWER ✔✔Dollar amounts the employer pays an employee for the
work they perform
Types of earnings - 🧠ANSWER ✔✔- a salary
- a rate for each hour worked
- a rate per piece of goods produced or picked
- a disability payment for time off work due to illness
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
3
STATEMENT. ALL RIGHTS RESERVED
, - a payment for vacation time
- a premium payment for overtime hours worked
- a premium payment for hours worked on shift
Allowances - 🧠ANSWER ✔✔Additional dollar amounts paid to employees for the
use, or anticipated use, of their personal property for business purposes
Benefits - 🧠ANSWER ✔✔Dollar values attributed to something the employer has
either provided to an employee or paid for on an employee's behalf
Expense Reimbursements - 🧠ANSWER ✔✔Dollar amounts paid to employees to
cover expenses that they incur while performing their job.
Regular payments - 🧠ANSWER ✔✔Have an established frequency, such as
weekly-paid salary or wages
Non-regular payments - 🧠ANSWER ✔✔payments that do not occur each pay
period, for example, a bonus or a retroactive adjustment
Salary - 🧠ANSWER ✔✔A fixed amount of money paid to an employee for each
pay period.
Salary per pay period - 🧠ANSWER ✔✔Annual salary / number of pay periods per
year
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
4
STATEMENT. ALL RIGHTS RESERVED
