Payroll Legislation Final Exam Questions
and Answers
Question 1
Describe Ontario's Employer Health Tax
Correct Answer
Paid by employers who have an establishment in ON and pay remuneration in
excess of the exemption must remit the tax
-Applies to remuneration for employees who work at the establishment in ON and
those who do not work there, but are paid from the establishment
Question 2
How are union dues calculated?
Correct Answer
1. Percentage of gross or regular pay
2. Set dollar amount per month or pay period
3. Rate per hour worked or paid
4. Multiple of the employee's rate of pay
- There is usually a minimum amount, and sometimes a maximum amount, that will
be deducted
Question 3
Are union dues taxed?
Correct Answer
1. No - they are deducted before tax is calculated in all jurisdictions except Québec
2. Exceptions:
- Initiation fees - not included on T4 or RL-1
- Special purpose fees (such as to fund a strike)
- Funds for benefit plans (insurance, annuities, etc)
Page 1 of 57
,Question 4
What are supplemental pension plans?
Correct Answer
Question 5
What changes can an employer make to employee rights and privileges once they've
been informed of the application?
Correct Answer
None - all rights and privileges (rates of pay, terms of employment, etc) must stay
the same until either the application has been withdrawn or the union has been
certified for a period of 30 days
Question 6
What are the standards with respect to minimum wage?
Correct Answer
1. Minimum wage is the lowest hourly rate that an employer can pay an employee
2. Varies by jurisdiction and sometimes by type of employee (such as students,
experience, serving alcohol, receiving tips, etc)
Question 7
Describe Manitoba's Health and Post-Secondary Education Tax Levy (HE Levy).
Correct Answer
1.Employers must pay a payroll-related tax levy if
-They have a permanent establishment in Manitoba
-They have employees who report to work at the establishment or are paid from the
establishment in Manitoba
2.Tax levy is calculated on the employer's annual gross payroll in the province
(including taxable benefits and allowances)
Page 2 of 57
,Question 8
What are conciliation and mediation?
Correct Answer
Conciliation - informal labour dispute and conflict resolution procedure involving a
subject matter expert who will use their knowledge of the issues at hand to help the
parties come to an agreement
Mediation - information labour dispute and conflict resolutions procedure involving
an impartial mediator who seeks to guide the parties into finding their own
resolution to disagreements
- Mediation complements conciliation, and is only used after conciliation efforts
have failed
Question 9
What role might Payroll play in the administration of the collective agreement?
Correct Answer
1. Ensuring the provisions regarding hours of work, overtime, vacation and holiday
pay, leaves, etc are administered according to the terms of the collective agreement
2. Deducting and remitting union fees
Page 3 of 57
, Question 10
What types of employment are not considered pensionable?
Correct Answer
1.Employment:
Of a worker in agriculture, fishing, logging, etc when the employee is paid less than
$250 cash remuneration for the year, or is paid for less than 25 working days in the
year
Of a teacher on an exchange program from another country
Of the employer's child or dependent if no cash remuneration is paid
Conferring the right to a pension plan under several Statutes of Canada
In the Canadian Forces or RCMP
By a QPP exempt employer
In Québec by another government or international organization
Of a member of a religious order who has taken a vow of poverty and whose
remuneration is paid to the order
Of a casual or short-term nature with a circus or show (excluding performance)
During an election or referendum of fewer than 35 hours in the year, of a casual
nature
Of a casual or short-term nature to help with disaster relief or rescue operations
By an employer who does not have an establishment in Québec (with exceptions)
Of a status Indian, if the income gives entitlement to the deduction for employment
income situation on a reserve or premises
Question 11
What are the standards with respect to weddings?
Correct Answer
In Québec, employers are required to allow employees a day off with pay should
their wedding occur on a working day (also applies to weddings of immediate
family members of the employee and their partners, although without pay)
Question 12
What are the standards with respect to temporary layoffs?
Correct Answer
1. Temporary layoffs are allowed in most jurisdictions
2. If the layoff lasts longer than the jurisdiction's threshold, then termination
standards apply
Page 4 of 57
and Answers
Question 1
Describe Ontario's Employer Health Tax
Correct Answer
Paid by employers who have an establishment in ON and pay remuneration in
excess of the exemption must remit the tax
-Applies to remuneration for employees who work at the establishment in ON and
those who do not work there, but are paid from the establishment
Question 2
How are union dues calculated?
Correct Answer
1. Percentage of gross or regular pay
2. Set dollar amount per month or pay period
3. Rate per hour worked or paid
4. Multiple of the employee's rate of pay
- There is usually a minimum amount, and sometimes a maximum amount, that will
be deducted
Question 3
Are union dues taxed?
Correct Answer
1. No - they are deducted before tax is calculated in all jurisdictions except Québec
2. Exceptions:
- Initiation fees - not included on T4 or RL-1
- Special purpose fees (such as to fund a strike)
- Funds for benefit plans (insurance, annuities, etc)
Page 1 of 57
,Question 4
What are supplemental pension plans?
Correct Answer
Question 5
What changes can an employer make to employee rights and privileges once they've
been informed of the application?
Correct Answer
None - all rights and privileges (rates of pay, terms of employment, etc) must stay
the same until either the application has been withdrawn or the union has been
certified for a period of 30 days
Question 6
What are the standards with respect to minimum wage?
Correct Answer
1. Minimum wage is the lowest hourly rate that an employer can pay an employee
2. Varies by jurisdiction and sometimes by type of employee (such as students,
experience, serving alcohol, receiving tips, etc)
Question 7
Describe Manitoba's Health and Post-Secondary Education Tax Levy (HE Levy).
Correct Answer
1.Employers must pay a payroll-related tax levy if
-They have a permanent establishment in Manitoba
-They have employees who report to work at the establishment or are paid from the
establishment in Manitoba
2.Tax levy is calculated on the employer's annual gross payroll in the province
(including taxable benefits and allowances)
Page 2 of 57
,Question 8
What are conciliation and mediation?
Correct Answer
Conciliation - informal labour dispute and conflict resolution procedure involving a
subject matter expert who will use their knowledge of the issues at hand to help the
parties come to an agreement
Mediation - information labour dispute and conflict resolutions procedure involving
an impartial mediator who seeks to guide the parties into finding their own
resolution to disagreements
- Mediation complements conciliation, and is only used after conciliation efforts
have failed
Question 9
What role might Payroll play in the administration of the collective agreement?
Correct Answer
1. Ensuring the provisions regarding hours of work, overtime, vacation and holiday
pay, leaves, etc are administered according to the terms of the collective agreement
2. Deducting and remitting union fees
Page 3 of 57
, Question 10
What types of employment are not considered pensionable?
Correct Answer
1.Employment:
Of a worker in agriculture, fishing, logging, etc when the employee is paid less than
$250 cash remuneration for the year, or is paid for less than 25 working days in the
year
Of a teacher on an exchange program from another country
Of the employer's child or dependent if no cash remuneration is paid
Conferring the right to a pension plan under several Statutes of Canada
In the Canadian Forces or RCMP
By a QPP exempt employer
In Québec by another government or international organization
Of a member of a religious order who has taken a vow of poverty and whose
remuneration is paid to the order
Of a casual or short-term nature with a circus or show (excluding performance)
During an election or referendum of fewer than 35 hours in the year, of a casual
nature
Of a casual or short-term nature to help with disaster relief or rescue operations
By an employer who does not have an establishment in Québec (with exceptions)
Of a status Indian, if the income gives entitlement to the deduction for employment
income situation on a reserve or premises
Question 11
What are the standards with respect to weddings?
Correct Answer
In Québec, employers are required to allow employees a day off with pay should
their wedding occur on a working day (also applies to weddings of immediate
family members of the employee and their partners, although without pay)
Question 12
What are the standards with respect to temporary layoffs?
Correct Answer
1. Temporary layoffs are allowed in most jurisdictions
2. If the layoff lasts longer than the jurisdiction's threshold, then termination
standards apply
Page 4 of 57
