BUSM27221: Payroll Fundamentals
Canada Revenue Agency - ANS-The CRA is a federal government agency that manages the
following business lines for the federal government: Tax Services and Benefit Programs. It's
mission is to promote compliance with the tax legislation and is mandated to collect revenues
and administer tax laws for the federal government and most provinces and territories as well as
deliver various social, economic and incentive programs.
Contributions to the plan and payment of benefits are based on? - ANS-the percentage of
insurable earnings. In 2016 the maximum insurable earnings (fixed annually) has increased to
$50,800.00 and the premium rates payable by an insured employee and the employer are also
fixed annually.
CPP - ANS-The CPP began January 1, 1966 and is a social insurance program that provides
protection in the form of benefits to contributors and their families against loss of income due to
retirement, disability and death. It also provides:
Surviving spouse pensions
Disability benefits
Benefits to orphans and children of disabled contributors
Death benefits payable upon the death of the contributor
CPP is how much for this year? - ANS-4.95%
CRA's responsibilities include determining: - ANS-If the individual's employment is pensionable
under the CPP Act or insurable under the EI Act
The amount of pensionable or insurable earnings
Whether or not CPP contributions and EI premiums are payable
How many hours an insured person has in insurable employment
The amount of CPP contributions and EI premiums payable
The recovery of any debts owed involving CPP, EI and Old Age Security benefits
Criteria to determine the type of contract: - ANS-1.The degree of control, if any, exercised by the
employer
2. Ownership of the tools required to do the job
3. The chance of profit and risk of loss
4. The extent to which the work done by the employee is integrated into the employer's business
EI - ANS-All employers must deduct EI premiums for the insurable earnings of the employees
and remit them along with the employer's portion. The employer's portion is 1.4 times that of the
employee.
Example:
Sally Jones has $800 insurable earnings in this pay. Her employer Target, must contribute 1.4
times Sally's contribution.
Sally contributes ($800 x 1.88%) = 15.04
Target contributes 15.05 x 1.4 = 21.06
ESDC is responsible for: - ANS-The financial requirements related to the establishment of the
annual Employment Insurance premium rate
Canada Revenue Agency - ANS-The CRA is a federal government agency that manages the
following business lines for the federal government: Tax Services and Benefit Programs. It's
mission is to promote compliance with the tax legislation and is mandated to collect revenues
and administer tax laws for the federal government and most provinces and territories as well as
deliver various social, economic and incentive programs.
Contributions to the plan and payment of benefits are based on? - ANS-the percentage of
insurable earnings. In 2016 the maximum insurable earnings (fixed annually) has increased to
$50,800.00 and the premium rates payable by an insured employee and the employer are also
fixed annually.
CPP - ANS-The CPP began January 1, 1966 and is a social insurance program that provides
protection in the form of benefits to contributors and their families against loss of income due to
retirement, disability and death. It also provides:
Surviving spouse pensions
Disability benefits
Benefits to orphans and children of disabled contributors
Death benefits payable upon the death of the contributor
CPP is how much for this year? - ANS-4.95%
CRA's responsibilities include determining: - ANS-If the individual's employment is pensionable
under the CPP Act or insurable under the EI Act
The amount of pensionable or insurable earnings
Whether or not CPP contributions and EI premiums are payable
How many hours an insured person has in insurable employment
The amount of CPP contributions and EI premiums payable
The recovery of any debts owed involving CPP, EI and Old Age Security benefits
Criteria to determine the type of contract: - ANS-1.The degree of control, if any, exercised by the
employer
2. Ownership of the tools required to do the job
3. The chance of profit and risk of loss
4. The extent to which the work done by the employee is integrated into the employer's business
EI - ANS-All employers must deduct EI premiums for the insurable earnings of the employees
and remit them along with the employer's portion. The employer's portion is 1.4 times that of the
employee.
Example:
Sally Jones has $800 insurable earnings in this pay. Her employer Target, must contribute 1.4
times Sally's contribution.
Sally contributes ($800 x 1.88%) = 15.04
Target contributes 15.05 x 1.4 = 21.06
ESDC is responsible for: - ANS-The financial requirements related to the establishment of the
annual Employment Insurance premium rate
