SOLUTIONS MANUAL
An Introduction to Payroll Administration
6th Edition By Alan Dryden
TABLE OF CONTENTS:
Chapter 1: Introduction to Canadian Payroll
Chapter 2: Labour and Employment Standards
Chapter 3: Calculation of Gross Earnings
Chapter 4: Pensionable, Insurable, and Taxable Earnings
Chapter 5: Non-Statutory Withholdings from Payroll
Chapter 6: Calculation of Net Pay
Chapter 7: Employer Payroll Taxes and Premiums
Chapter 8: Accounting for Payroll
Chapter 9: Payroll Information Systems
Chapter 10: Payroll Remittances
Chapter 11: Termination of Employment
Chapter 12: Year-end Payroll Reporting
,Chapter 1
Dryden: An Introduction to Canadian Payroll
Administration, 6e
Solutions to Questions
Review Questions:
1-1 The criteria are:
What was the intent of the parties in entering the contract.
The degree of control that the payer exerts over the worker
Who provides the necessary tools for the work to be performed
Whether the worker can sub-contract work to others or hire
assistants
Whether or not the worker has financial investment in a business to
perform the work
The degree of financial risk that the worker has
If there is opportunity for additional profit, or risk of financial loss in
performing the contract
The degree of integration of the worker into the payer’s organization
1-2 The employer must receive a Social Insurance Number from the
employee within three days of commencing the employment contract, or
terminated employment.
The Social Insurance Number should be kept confidential and only used
in communicating employee information to the government.
If the Social Insurance Number starts with the number 9 then it is a
temporary number. The employer need to know the expiry date and if
the employee cannot provide a permanent number, or evidence of expiry
extension then the employment contract needs to be terminated by the
expiry date.
1-3 Industries covered by federal legislation include:
banks
Dryden 6e: Solutions Manual Chapter 1
©2022 McGraw Hill. All Rights Reserved.
1
, inter-provincial marine shipping, ferry and port services
air transportation, including airports and airlines
railway and road transportation that involves crossing provincial or
international borders
canals, pipelines, tunnels and bridges (crossing provincial borders)
telephone, telegraph and cable systems
radio and television broadcasting
grain elevators, feed and seed mills
uranium mining and processing
businesses dealing with the protection of fisheries as a natural resource
many First Nation activities
most federal Crown corporations
private businesses necessary to the operation of a federal act
1-4 Stakeholders for payroll administration within the company are all employees,
as well as accounting, human resources and management.
1-5 External stakeholders for payroll administration include the Canada
Revenue Agency, Revenue Quebec, provincial/territorial agencies,
courts, unions, pension administrators, group benefit insurance carriers,
charities and any other party for which there are deductions from the
employees’ wages.
Suggested Exercises:
1-1 The seven criteria should be discussed with the class, depending on what
personal information the instructor is willing to share. In most situations
the instructor will be an employee.
1-2 The different criteria used in Quebec should be compared to the Canada
Revenue Agency. Discussions should lead to students to understand that
the differences are more semantic than substantive and either set of
criteria will likely lead to the same determination.
1-3 The exercise is expected to entice a variety of different opinions to be
expressed as to why each industry is of the “national interest”.
Responses will vary by class.
Dryden 6e: Solutions Manual Chapter 1
©2022 McGraw Hill. All Rights Reserved.
2
, 1-4 As education is provincial responsibility it is expected that all schools
will fall under provincial or territorial jurisdiction.
1-5 The employer challenges in administering the Social Insurance Number
identified by students will vary widely based on individual experience
and work knowledge. Emphasis should be placed on the initial request,
monitoring temporary numbers and maintaining confidentiality.
1-6 This exercise will provide for discussion of internal and external
stakeholders for the payroll process. Internal parties should include
employees, business owners and managers, as well as departments such
as accounting, human resources and information technology. External
stakeholders list should include the Canada Revenue Agency, Service
Canada, courts, unions and benefit providers.
Assessment Questions:
1-1 d) All of the above
1-2 b) The worker can hire assistants
1-3 d) Contact the Canada Revenue Agency for a ruling.
1-4 a) Three days
1-5 c) Request the employee provide card expiry date
1-6 a) Banking
1-7 c) Credit Unions
1-8 d) National retailer
1-9 c) Human resources
1-10 a) Canada Revenue Agency
Dryden 6e: Solutions Manual Chapter 1
©2022 McGraw Hill. All Rights Reserved.
3
An Introduction to Payroll Administration
6th Edition By Alan Dryden
TABLE OF CONTENTS:
Chapter 1: Introduction to Canadian Payroll
Chapter 2: Labour and Employment Standards
Chapter 3: Calculation of Gross Earnings
Chapter 4: Pensionable, Insurable, and Taxable Earnings
Chapter 5: Non-Statutory Withholdings from Payroll
Chapter 6: Calculation of Net Pay
Chapter 7: Employer Payroll Taxes and Premiums
Chapter 8: Accounting for Payroll
Chapter 9: Payroll Information Systems
Chapter 10: Payroll Remittances
Chapter 11: Termination of Employment
Chapter 12: Year-end Payroll Reporting
,Chapter 1
Dryden: An Introduction to Canadian Payroll
Administration, 6e
Solutions to Questions
Review Questions:
1-1 The criteria are:
What was the intent of the parties in entering the contract.
The degree of control that the payer exerts over the worker
Who provides the necessary tools for the work to be performed
Whether the worker can sub-contract work to others or hire
assistants
Whether or not the worker has financial investment in a business to
perform the work
The degree of financial risk that the worker has
If there is opportunity for additional profit, or risk of financial loss in
performing the contract
The degree of integration of the worker into the payer’s organization
1-2 The employer must receive a Social Insurance Number from the
employee within three days of commencing the employment contract, or
terminated employment.
The Social Insurance Number should be kept confidential and only used
in communicating employee information to the government.
If the Social Insurance Number starts with the number 9 then it is a
temporary number. The employer need to know the expiry date and if
the employee cannot provide a permanent number, or evidence of expiry
extension then the employment contract needs to be terminated by the
expiry date.
1-3 Industries covered by federal legislation include:
banks
Dryden 6e: Solutions Manual Chapter 1
©2022 McGraw Hill. All Rights Reserved.
1
, inter-provincial marine shipping, ferry and port services
air transportation, including airports and airlines
railway and road transportation that involves crossing provincial or
international borders
canals, pipelines, tunnels and bridges (crossing provincial borders)
telephone, telegraph and cable systems
radio and television broadcasting
grain elevators, feed and seed mills
uranium mining and processing
businesses dealing with the protection of fisheries as a natural resource
many First Nation activities
most federal Crown corporations
private businesses necessary to the operation of a federal act
1-4 Stakeholders for payroll administration within the company are all employees,
as well as accounting, human resources and management.
1-5 External stakeholders for payroll administration include the Canada
Revenue Agency, Revenue Quebec, provincial/territorial agencies,
courts, unions, pension administrators, group benefit insurance carriers,
charities and any other party for which there are deductions from the
employees’ wages.
Suggested Exercises:
1-1 The seven criteria should be discussed with the class, depending on what
personal information the instructor is willing to share. In most situations
the instructor will be an employee.
1-2 The different criteria used in Quebec should be compared to the Canada
Revenue Agency. Discussions should lead to students to understand that
the differences are more semantic than substantive and either set of
criteria will likely lead to the same determination.
1-3 The exercise is expected to entice a variety of different opinions to be
expressed as to why each industry is of the “national interest”.
Responses will vary by class.
Dryden 6e: Solutions Manual Chapter 1
©2022 McGraw Hill. All Rights Reserved.
2
, 1-4 As education is provincial responsibility it is expected that all schools
will fall under provincial or territorial jurisdiction.
1-5 The employer challenges in administering the Social Insurance Number
identified by students will vary widely based on individual experience
and work knowledge. Emphasis should be placed on the initial request,
monitoring temporary numbers and maintaining confidentiality.
1-6 This exercise will provide for discussion of internal and external
stakeholders for the payroll process. Internal parties should include
employees, business owners and managers, as well as departments such
as accounting, human resources and information technology. External
stakeholders list should include the Canada Revenue Agency, Service
Canada, courts, unions and benefit providers.
Assessment Questions:
1-1 d) All of the above
1-2 b) The worker can hire assistants
1-3 d) Contact the Canada Revenue Agency for a ruling.
1-4 a) Three days
1-5 c) Request the employee provide card expiry date
1-6 a) Banking
1-7 c) Credit Unions
1-8 d) National retailer
1-9 c) Human resources
1-10 a) Canada Revenue Agency
Dryden 6e: Solutions Manual Chapter 1
©2022 McGraw Hill. All Rights Reserved.
3
