Payroll Compliance Legislation Course
Midterm Exam Questions and Correct
Answers
Question 1
Some of Service Canada's program responsibilities are: (6)
Correct Answer
- the issuance of Social Insurance Numbers (SIN) and the protection and security of
SIN information
- the delivery of services to employers, including Record of Employment on the Web
- the administration of Employment Insurance programs, including regular, parental,
sickness, seasonal and compassionate care benefits
- the administration of the Employment Insurance Premium Reduction program,
including granting qualified employers a reduced Employment Insurance premium
rate
- the administration of Canada Pension Plan benefits, including retirement,
disability, survivor, children's and death benefits
- the administration of benefits for seniors, including the Old Age Security Program
and the Guaranteed Income Supplement
Question 2
4 Possible Meanings of Payroll
Correct Answer
1. The department that administers the payroll
2. The total number of people employed by an organization
3. The wages and salaries paid out in a year
4. A list of persons to be paid and the amount due to each
Page 1 of 21
,Question 3
A Payroll Practitioner's responsibilities will differ depending on: (4)
Correct Answer
- Size of the organization
- The number of jurisdictions in which they pay
- The reporting structure under which they work
- Whether there are other related departments in the organization (such as HR,
Finance, and Administration)
Question 4
Payments & Benefits subject to EI premiums:
Correct Answer
- most earnings (including controlled tips) and allowances that you pay in cash to
an employee are insurable
- employer contributions to employee's registered retirement savings plan (RRSPs)
are considered to be a benefit in cash and are insurable
Question 5
Pension Benefits Standards Act (PBSA) primarily affects payroll in the areas of:
Correct Answer
- eligibility and membership requirements
- contribution requirements
Question 6
Internal Stakeholders (3)
Correct Answer
- employers
- employees
- other departments
Page 2 of 21
, Question 7
Payments & Benefits subject to CPP contributions generally fall into the following
categories:
Correct Answer
1. income from employment
2. taxable benefits and allowances
3. certain fees and honorariums
4. controlled tips
5. paid leave
6. benefits under certain wage-loss replacement plans
Question 8
Each year, Employment and Social Development Canada (ESDC) determines for
insurable earnings:
Correct Answer
- an annual maximum insurable earnings (MIE) amount on which the employer
calculates Employment Insurance premiums
- a premium rate employers use to calculate the amount of Employment Insurance
to deduct from employees.
Question 9
Canada Revenue Agency (CRA): a federal government agency that manages the
following business lines for the federal government (2)
Correct Answer
- Tax services
- Benefit programs
Question 10
Legislative requirements are termed ________
Correct Answer
statutory (meaning they are enacted, created, or regulated by a statute, a law
enacted by the legislative branch of a government)
Page 3 of 21
Midterm Exam Questions and Correct
Answers
Question 1
Some of Service Canada's program responsibilities are: (6)
Correct Answer
- the issuance of Social Insurance Numbers (SIN) and the protection and security of
SIN information
- the delivery of services to employers, including Record of Employment on the Web
- the administration of Employment Insurance programs, including regular, parental,
sickness, seasonal and compassionate care benefits
- the administration of the Employment Insurance Premium Reduction program,
including granting qualified employers a reduced Employment Insurance premium
rate
- the administration of Canada Pension Plan benefits, including retirement,
disability, survivor, children's and death benefits
- the administration of benefits for seniors, including the Old Age Security Program
and the Guaranteed Income Supplement
Question 2
4 Possible Meanings of Payroll
Correct Answer
1. The department that administers the payroll
2. The total number of people employed by an organization
3. The wages and salaries paid out in a year
4. A list of persons to be paid and the amount due to each
Page 1 of 21
,Question 3
A Payroll Practitioner's responsibilities will differ depending on: (4)
Correct Answer
- Size of the organization
- The number of jurisdictions in which they pay
- The reporting structure under which they work
- Whether there are other related departments in the organization (such as HR,
Finance, and Administration)
Question 4
Payments & Benefits subject to EI premiums:
Correct Answer
- most earnings (including controlled tips) and allowances that you pay in cash to
an employee are insurable
- employer contributions to employee's registered retirement savings plan (RRSPs)
are considered to be a benefit in cash and are insurable
Question 5
Pension Benefits Standards Act (PBSA) primarily affects payroll in the areas of:
Correct Answer
- eligibility and membership requirements
- contribution requirements
Question 6
Internal Stakeholders (3)
Correct Answer
- employers
- employees
- other departments
Page 2 of 21
, Question 7
Payments & Benefits subject to CPP contributions generally fall into the following
categories:
Correct Answer
1. income from employment
2. taxable benefits and allowances
3. certain fees and honorariums
4. controlled tips
5. paid leave
6. benefits under certain wage-loss replacement plans
Question 8
Each year, Employment and Social Development Canada (ESDC) determines for
insurable earnings:
Correct Answer
- an annual maximum insurable earnings (MIE) amount on which the employer
calculates Employment Insurance premiums
- a premium rate employers use to calculate the amount of Employment Insurance
to deduct from employees.
Question 9
Canada Revenue Agency (CRA): a federal government agency that manages the
following business lines for the federal government (2)
Correct Answer
- Tax services
- Benefit programs
Question 10
Legislative requirements are termed ________
Correct Answer
statutory (meaning they are enacted, created, or regulated by a statute, a law
enacted by the legislative branch of a government)
Page 3 of 21
