Canadian Payroll Compliance Legislation - Chapter
2 EXAM QUESTIONS AND CORRECT ANSWERS
ALREADY GRADED A+ || REAL RN MENTAL HEALTH
EXAM 2026-2027 EXAM QUESTIONS AND
ANSWERS|| BRAND NEW!
CRA payroll compliance requirements for income tax for Quebec
employees.
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.
CRA payroll compliance requirements for EI
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
Equal to the employee's contribution amount.
Employer EI premium amount
1.4 times the employee's premium amount.
Statutory deductions
Deductions required under legislative statute. The first deductions
withheld from an employee's gross pay.
, Non-compliance penalties on late remittances over $500.
-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.
Non-compliance penalties on amounts due for failure to withhold
and/or remit statutory deductions over $500
-10% plus interest on the first occurrence.
-20% plus interest for each subsequent occurrences in the same
calendar year if failure was made knowingly or due to gross
negligence.
Reason to incur penalties on amounts less than $500
Willful delay or deficiency.
CRA responsibilities under the Canadian Pension Plan Act
-Determine if an individual's type of employment is pensionable.
-Determine types of earnings considered pensionable.
-Ensure payroll contributions are deducted, remitted and reported as
required by legislation.
-Collect amounts owed from overpayments of CPP and Old Age
Security benefits.
2 EXAM QUESTIONS AND CORRECT ANSWERS
ALREADY GRADED A+ || REAL RN MENTAL HEALTH
EXAM 2026-2027 EXAM QUESTIONS AND
ANSWERS|| BRAND NEW!
CRA payroll compliance requirements for income tax for Quebec
employees.
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.
CRA payroll compliance requirements for EI
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
Equal to the employee's contribution amount.
Employer EI premium amount
1.4 times the employee's premium amount.
Statutory deductions
Deductions required under legislative statute. The first deductions
withheld from an employee's gross pay.
, Non-compliance penalties on late remittances over $500.
-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.
Non-compliance penalties on amounts due for failure to withhold
and/or remit statutory deductions over $500
-10% plus interest on the first occurrence.
-20% plus interest for each subsequent occurrences in the same
calendar year if failure was made knowingly or due to gross
negligence.
Reason to incur penalties on amounts less than $500
Willful delay or deficiency.
CRA responsibilities under the Canadian Pension Plan Act
-Determine if an individual's type of employment is pensionable.
-Determine types of earnings considered pensionable.
-Ensure payroll contributions are deducted, remitted and reported as
required by legislation.
-Collect amounts owed from overpayments of CPP and Old Age
Security benefits.
