Canadian Payroll Compliance Legislation
- Chapter 2 Exam Actual Questions and
Answers 2026
General CRA payroll compliance requirements -
correct answer ✅Withhold the statutory deductions from
employees' pay for income tax, CPP contributions and EI premiums
and remit to CRA as required by legislation.
CRA payroll compliance requirements for CPP -
correct answer ✅Deduct CPP contributions from employee's
pensionable earnings and remit these amounts, along with the
employer's portion, to the CRA.
CRA payroll compliance requirements for income tax (except
Quebec employees) -
correct answer ✅Deduct the combined federal and
provincial/territorial income tax from the employee's gross pay and
remit these amounts to the CRA.
CRA payroll compliance requirements for income tax for Quebec
employees. -
correct answer ✅Deduct the federal income tax from the
employee's gross pay and remit these amounts to the CRA. Quebec
provincial income tax is paid directly to Revenu Quebec.
, Canadian Payroll Compliance Legislation
- Chapter 2 Exam Actual Questions and
Answers 2026
CRA payroll compliance requirements for EI -
correct answer ✅Deduct EI premiums from employee's insurable
earnings and remit these amounts, along with the employer's
portion, to the CRA.
Employer CPP contribution amount -
correct answer ✅Equal to the employee's contribution amount.
Employer EI premium amount -
correct answer ✅1.4 times the employee's premium amount.
Statutory deductions -
correct answer ✅Deductions required under legislative statute.
The first deductions withheld from an employee's gross pay.
Non-compliance penalties on late remittances over $500. -
correct answer ✅-3% plus interest for 1 to 3 days late.
-5% plus interest for 4 to 5 days late.
-7% plus interest for 6 to 7 days late.
-10% plus interest for 8 or more days late.
- Chapter 2 Exam Actual Questions and
Answers 2026
General CRA payroll compliance requirements -
correct answer ✅Withhold the statutory deductions from
employees' pay for income tax, CPP contributions and EI premiums
and remit to CRA as required by legislation.
CRA payroll compliance requirements for CPP -
correct answer ✅Deduct CPP contributions from employee's
pensionable earnings and remit these amounts, along with the
employer's portion, to the CRA.
CRA payroll compliance requirements for income tax (except
Quebec employees) -
correct answer ✅Deduct the combined federal and
provincial/territorial income tax from the employee's gross pay and
remit these amounts to the CRA.
CRA payroll compliance requirements for income tax for Quebec
employees. -
correct answer ✅Deduct the federal income tax from the
employee's gross pay and remit these amounts to the CRA. Quebec
provincial income tax is paid directly to Revenu Quebec.
, Canadian Payroll Compliance Legislation
- Chapter 2 Exam Actual Questions and
Answers 2026
CRA payroll compliance requirements for EI -
correct answer ✅Deduct EI premiums from employee's insurable
earnings and remit these amounts, along with the employer's
portion, to the CRA.
Employer CPP contribution amount -
correct answer ✅Equal to the employee's contribution amount.
Employer EI premium amount -
correct answer ✅1.4 times the employee's premium amount.
Statutory deductions -
correct answer ✅Deductions required under legislative statute.
The first deductions withheld from an employee's gross pay.
Non-compliance penalties on late remittances over $500. -
correct answer ✅-3% plus interest for 1 to 3 days late.
-5% plus interest for 4 to 5 days late.
-7% plus interest for 6 to 7 days late.
-10% plus interest for 8 or more days late.
