PAYROLL COMPLIANCE LEGISLATION
TEST BANK ACTUAL QUESTIONS AND
VERIFIED RESPONSES GRADED A+
⩥ Types of employment that is not to EI premiums
Answer: Jobs not subject to EI (no premiums taken):
Casual work not related to the company's normal business Family
members working together (unless terms are fair like any other
employee)
Person controls 40%+ voting shares in a company = no EI
Work/service exchanges = not insurable
Working in Canada but paid by a foreign employer in an exchange
program
Religious orders (with vow of poverty + paid to order)
Rescue work volunteers (if not regular employees)
⩥ Annual max employer EI premium rate
Answer: employer rate is multiply employee's portion with 1.4 (unless
there is reduced rate)
⩥ EI premium reduction program
,Answer: Allows employers to pay EI premiums at a reduced rate if their
employees are covered by a short-term disability (STD) plan that meets
certain requirements set by Service Canada.
⩥ 7 consecutive calendar days meaning
Answer: Seven calendar days in a row, without any interruption or break
⩥ 2 interruption of earnings
Answer: Employee had or anticipated 7 days in a row with no work + no
insurable earnings, this is called 7-day rule.
Pay drops below 60% of normal because of: - Illness or injury -
Quarantine - Pregnancy or adoption leave - Caring for a sick or dying
family member - Caring for a critically ill/injured child or adult
⩥ Info about ROE uses 3 things
Answer: If a person qualifies for Employment Insurance (EI) benefits.
What the benefit amount should be.
How long a person is eligible for these benefits
⩥ 2 ROE formats (paper and its serial number)
Answer: electronic and paper (hard copy)
⩥ When filing paper and electronic ROE (also its differences)
,Answer: Electronic ROE methods submitted to Service Canada:
ROE Web (upload) -> through payroll software
ROE Web (manual) -> type info online on Service Canada's site
Secure Automated Transfer (SAT) -> used by payroll companies for bulk
upload
Paper ROE 3 part form: 3 copies
Copy 1 -> given to employee to submit to Service Canada to see if they
file for EI benefits.
Copy 2 -> sent to Service Canada
Copy 3 -> kept by employer for their records (for 6 years)
⩥ Deadline for issuing for ROE
Answer: If filing electronically:
Weekly/Bi-weekly/Semi-monthly pay: - ROE due 5 calendar days after
end he pay period with the interruption of earnings.
Monthly/Every 4 weeks: - ROE due on the earlier of: - 5 calendar days
after end of the pay period. - 15 calendar days after first day of the
interruption of earnings.
If filing a paper ROE:
ROE due within 5 calendar days of: - The first day of interruption of
earnings. - OR the day the employer finds out about the interruption of
earnings.
, ⩥ What is Insurable hour
Answer: Is considered an hour worked and paid within insurable
employment even though the hour of work may have been paid at a
higher pay rate.
⩥ Why service Canada switched from paper to electronic
Answer: it saves time and clicks one button to look through employees
history
⩥ Province of employment
Answer: The appropriate provincial or territorial tax rate to apply to an
employee's taxable income depends on the employee's workplace
location.
⩥ 6 things that are subtracted to determine net taxable income
Answer: Enhanced portion of C/QPP contributions
Employee payments to a Registered Pension Plan (RPP)
RRSP contributions
Union dues (not in Quebec)
Prescribed zone deduction (if you live far north or in remote areas)
Places like Yukon, NWT, Nunavut, or northern areas in other provinces
CRA-approved deductions (authorized case-by-case)
TEST BANK ACTUAL QUESTIONS AND
VERIFIED RESPONSES GRADED A+
⩥ Types of employment that is not to EI premiums
Answer: Jobs not subject to EI (no premiums taken):
Casual work not related to the company's normal business Family
members working together (unless terms are fair like any other
employee)
Person controls 40%+ voting shares in a company = no EI
Work/service exchanges = not insurable
Working in Canada but paid by a foreign employer in an exchange
program
Religious orders (with vow of poverty + paid to order)
Rescue work volunteers (if not regular employees)
⩥ Annual max employer EI premium rate
Answer: employer rate is multiply employee's portion with 1.4 (unless
there is reduced rate)
⩥ EI premium reduction program
,Answer: Allows employers to pay EI premiums at a reduced rate if their
employees are covered by a short-term disability (STD) plan that meets
certain requirements set by Service Canada.
⩥ 7 consecutive calendar days meaning
Answer: Seven calendar days in a row, without any interruption or break
⩥ 2 interruption of earnings
Answer: Employee had or anticipated 7 days in a row with no work + no
insurable earnings, this is called 7-day rule.
Pay drops below 60% of normal because of: - Illness or injury -
Quarantine - Pregnancy or adoption leave - Caring for a sick or dying
family member - Caring for a critically ill/injured child or adult
⩥ Info about ROE uses 3 things
Answer: If a person qualifies for Employment Insurance (EI) benefits.
What the benefit amount should be.
How long a person is eligible for these benefits
⩥ 2 ROE formats (paper and its serial number)
Answer: electronic and paper (hard copy)
⩥ When filing paper and electronic ROE (also its differences)
,Answer: Electronic ROE methods submitted to Service Canada:
ROE Web (upload) -> through payroll software
ROE Web (manual) -> type info online on Service Canada's site
Secure Automated Transfer (SAT) -> used by payroll companies for bulk
upload
Paper ROE 3 part form: 3 copies
Copy 1 -> given to employee to submit to Service Canada to see if they
file for EI benefits.
Copy 2 -> sent to Service Canada
Copy 3 -> kept by employer for their records (for 6 years)
⩥ Deadline for issuing for ROE
Answer: If filing electronically:
Weekly/Bi-weekly/Semi-monthly pay: - ROE due 5 calendar days after
end he pay period with the interruption of earnings.
Monthly/Every 4 weeks: - ROE due on the earlier of: - 5 calendar days
after end of the pay period. - 15 calendar days after first day of the
interruption of earnings.
If filing a paper ROE:
ROE due within 5 calendar days of: - The first day of interruption of
earnings. - OR the day the employer finds out about the interruption of
earnings.
, ⩥ What is Insurable hour
Answer: Is considered an hour worked and paid within insurable
employment even though the hour of work may have been paid at a
higher pay rate.
⩥ Why service Canada switched from paper to electronic
Answer: it saves time and clicks one button to look through employees
history
⩥ Province of employment
Answer: The appropriate provincial or territorial tax rate to apply to an
employee's taxable income depends on the employee's workplace
location.
⩥ 6 things that are subtracted to determine net taxable income
Answer: Enhanced portion of C/QPP contributions
Employee payments to a Registered Pension Plan (RPP)
RRSP contributions
Union dues (not in Quebec)
Prescribed zone deduction (if you live far north or in remote areas)
Places like Yukon, NWT, Nunavut, or northern areas in other provinces
CRA-approved deductions (authorized case-by-case)
