Solutions for An Introduction To Payroll Administration, 7th Edition by Alan Dryden.pdf

,ACCESS Test Bank for Introduction to Payroll Administration 6th Canad
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ian Edition Dryden m m




Chapter 1 m



Dryden: An Introduction to Canadian Payroll Administratio
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Solutions to Questions
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Review Questions:
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1-1 The criteria are: m m


• What was the intent of the parties in entering the contract.
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• The degree of control that the payer exerts over the worker
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• Who provides the necessary tools for the work to be performed
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• Whether the worker can sub- m m m m

contract work to others or hire assistants
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• Whether or not the worker has financial investment in a business t
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o perform the work m m m


• The degree of financial risk that the worker has
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• If there is opportunity for additional profit, or risk of financial loss i
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n performing the contract
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• The degree of integration of the worker into the payer’s organization
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1-2 The employer must receive a Social Insurance Number from the empl
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oyee within three days of commencing the employment contract, or ter
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minated employment. m




The Social Insurance Number should be kept confidential and only used
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in communicating employee information to the government.
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If the Social Insurance Number starts with the number 9 then it is a te
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mporary number. The employer need to know the expiry date and if the
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memployee cannot provide a permanent number, or evidence of expiry ex
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tension then the employment contract needs to be terminated by the ex
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piry date. m




1-3 Industries covered by federal legislation include:
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• banks

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,ACCESS Test Bank for Introduction to Payroll Administration 6th Canad
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• inter-provincial marine shipping, ferry and port services
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• air transportation, including airports and airlines
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• railway and road transportation that involves crossing provincial o
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r international borders
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• canals, pipelines, tunnels and bridges (crossing provincial borders)
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• telephone, telegraph and cable systems
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• radio and television broadcasting
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• grain elevators, feed and seed mills
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• uranium mining and processing
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• businesses dealing with the protection of fisheries as a natural resource
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• many First Nation activities
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• most federal Crown corporations
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• private businesses necessary to the operation of a federal act
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1-4 Stakeholders for payroll administration within the company are all employees
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, as well as accounting, human resources and management.
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1-5 External stakeholders for payroll administration include the Canada
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Revenue Agency, Revenue Quebec, provincial/territorial agencies, co
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urts, unions, pension administrators, group benefit insurance carriers, c
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harities and any other party for which there are deductions from the
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employees’ wages. m




Suggested Exercises:
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1-1 The seven criteria should be discussed with the class, depending on wha
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t personal information the instructor is willing to share. In most situatio
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ns the instructor will be an employee.
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1-2 The different criteria used in Quebec should be compared to the Canad
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a Revenue Agency. Discussions should lead to students to understand t
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hat the differences are more semantic than substantive and either set o
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f criteria will likely lead to the same determination.
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1-3 The exercise is expected to entice a variety of different opinions to be
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expressed as to why each industry is of the “national interest”.
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Responses will vary by class. m m m m




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1-4 As education is provincial responsibility it is expected that all school
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s will fall under provincial or territorial jurisdiction.
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1-5 The employer challenges in administering the Social Insurance Numbe
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r identified by students will vary widely based on individual experienc
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e and work knowledge. Emphasis should be placed on the initial reque
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st, monitoring temporary numbers and maintaining confidentiality.
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1-6 This exercise will provide for discussion of internal and external stak
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eholders for the payroll process. Internal parties should include empl
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oyees, business owners and managers, as well as departments such as a
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ccounting, human resources and information technology. External sta
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keholders list should include the Canada Revenue Agency, Service C
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anada, courts, unions and benefit providers.
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Assessment Questions:
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1-1 d) All of the above
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1-2 b) The worker can hire assistants
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1-3 d) Contact the Canada Revenue Agency for a ruling.
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1-4 a) Three days
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1-5 c) Request the employee provide card expiry date
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1-6 a) Banking m


1-7 c) Credit Unions
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1-8 d) National retailer
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1-9 c) Human resources
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1-10 a) Canada Revenue Agency
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