Chapter 1
Dryden: An Introduction to Canadian Payroll
Administration 7e
Solutions to Questions
Review Questions:
1-1 The criteria are:
• What was the intent of the parties in entering the contract.
• The degree of control that the payer exerts over the worker
• Who provides the necessary tools for the work to be performed
• Whether the worker can sub-contract work to others or hire
assistants
• Whether or not the worker has financial investment in a business to
perform the work
• The degree of financial risk that the worker has
• If there is opportunity for additional profit, or risk of financial loss in
performing the contract
• The degree of integration of the worker into the payer’s organization
1-2 The employer must receive a Social Insurance Number from the
employee within three days of commencing the employment contract, or
terminated employment.
The Social Insurance Number should be kept confidential and only used
in communicating employee information to the government.
If the Social Insurance Number starts with the number 9 then it is a
temporary number. The employer need to know the expiry date and if
the employee cannot provide a permanent number, or evidence of expiry
extension then the employment contract needs to be terminated by the
expiry date.
1-3 Industries covered by federal legislation include:
• banks
Dryden 7e: Solutions Manual Chapter 1
©2023
1
Dryden: An Introduction to Canadian Payroll
Administration 7e
Solutions to Questions
Review Questions:
1-1 The criteria are:
• What was the intent of the parties in entering the contract.
• The degree of control that the payer exerts over the worker
• Who provides the necessary tools for the work to be performed
• Whether the worker can sub-contract work to others or hire
assistants
• Whether or not the worker has financial investment in a business to
perform the work
• The degree of financial risk that the worker has
• If there is opportunity for additional profit, or risk of financial loss in
performing the contract
• The degree of integration of the worker into the payer’s organization
1-2 The employer must receive a Social Insurance Number from the
employee within three days of commencing the employment contract, or
terminated employment.
The Social Insurance Number should be kept confidential and only used
in communicating employee information to the government.
If the Social Insurance Number starts with the number 9 then it is a
temporary number. The employer need to know the expiry date and if
the employee cannot provide a permanent number, or evidence of expiry
extension then the employment contract needs to be terminated by the
expiry date.
1-3 Industries covered by federal legislation include:
• banks
Dryden 7e: Solutions Manual Chapter 1
©2023
1
