Canadian Payroll Compliance Legislation
- Chapter 2 Exam Questions and Answers
(Latest 2026)
General CRA payroll compliance requirements - Correct
Answers ✅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
Answers ✅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 Answers ✅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 Answers ✅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 - Correct
Answers ✅Deduct EI premiums from employee's insurable
earnings and remit these amounts, along with the employer's
portion, to the CRA.
, Canadian Payroll Compliance Legislation
- Chapter 2 Exam Questions and Answers
(Latest 2026)
Employer CPP contribution amount - Correct Answers
✅Equal to the employee's contribution amount.
Employer EI premium amount - Correct Answers ✅1.4
times the employee's premium amount.
Statutory deductions - Correct Answers ✅Deductions
required under legislative statute. The first deductions
withheld from an employee's gross pay.
Non-compliance penalties on late remittances over $500. -
Correct Answers ✅-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 -
Correct Answers ✅-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.
- Chapter 2 Exam Questions and Answers
(Latest 2026)
General CRA payroll compliance requirements - Correct
Answers ✅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
Answers ✅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 Answers ✅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 Answers ✅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 - Correct
Answers ✅Deduct EI premiums from employee's insurable
earnings and remit these amounts, along with the employer's
portion, to the CRA.
, Canadian Payroll Compliance Legislation
- Chapter 2 Exam Questions and Answers
(Latest 2026)
Employer CPP contribution amount - Correct Answers
✅Equal to the employee's contribution amount.
Employer EI premium amount - Correct Answers ✅1.4
times the employee's premium amount.
Statutory deductions - Correct Answers ✅Deductions
required under legislative statute. The first deductions
withheld from an employee's gross pay.
Non-compliance penalties on late remittances over $500. -
Correct Answers ✅-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 -
Correct Answers ✅-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.
