Comprehensive Questions
(Frequently Most Tested) with
Verified Answers
The maximum employee and employer combined contribution limit to a Defined Contribution Pension
Plan for 2022 is: - Answer: 30,780.00
Select the order of priority for withholding payroll deductions from an employee's earnings. - Answer:
Statutory deductions, legal deductions, union deductions, company-compulsory deductions, voluntary
deductions
Registered Retirement Savings Plan contribution limits are based on the lesser of: 18% of the employee's
previous year's earned income or the maximum annual Registered Retirement Savings Plan limit less
pension adjustments, less past service pension adjustments, plus any pension adjustment reversals, plus
any unused contribution room carried forward from previous years. - Answer: True
A Requirement to Pay is issued by: - Answer: Canada Revenue Agency and Revenu Québec
Which type of retirement plan would result in a taxable benefit for the employee if the employer made
the contribution? - Answer: Registered Retirement Savings Plan
What type of garnishment is issued when an employee's creditor wins a judgement in small claims court
to collect an outstanding debt? - Answer: Garnishment Order
If the garnishment percentage is not clearly stated in the Third Party Demand document, the employer
must: - Answer: contact Canada Revenue Agency and/or Revenu Québec immediately for a written
response
Which of the following is not correct? - Answer: A Registered Retirement Savings Plan is a pension plan
, If an employee's regular net pay including compulsory and voluntary deductions is not enough to satisfy
a required garnishment, what must the employer do? - Answer: Arrange with the employee to reduce or
suspend voluntary deductions
Severance Pay - Answer: Under the Canada Labour Code, Part III, employees who have 12 months of
continuous service are entitled to the greater of 2 days' wages at the regular rate, excluding overtime,
for each completed year of employment or 5 days' wages at the regular rate, excluding overtime.
$1,985.00 multiplied by 24 pay periods equals an annual salary of $47,640.00. The annual salary divided
by 260 days equals a daily salary of $183.23. The daily salary multiplied by 8 days of entitlement equals a
severance pay of $1,465.84.
The eligible portion of a retiring allowance is: - Answer: the portion of a retiring allowance eligible to be
transferred to a Registered Retirement Savings Plan or registered pension plan with no income tax
withholding at source
What is the maximum number of weeks in severance an employee in Ontario can receive? - Answer: 26
weeks of regular wages
Except for legislated severance pay, when are retiring allowances paid? - Answer: At the discretion of
the employer
A retiring allowance does not include: - Answer: accumulated overtime
Calculate the Employment Insurance premium on legislated wages in lieu of notice of $1,670.00, paid to
an employee in Québec who is paid on a weekly basis. - Answer: $20.04
Veronica is employed in Ontario at a national airline, which is governed under the Canada Labour Code,
Part III. Her employment is being terminated after 7 years and 2 months of service. She was paid
$900.00 weekly. Her employer's annual payroll is 5.5 million. Calculate the number of days Veronica is
entitled to for severance pay. - Answer: 14
Kyla worked for Electronic Charts from September 15, 1985 until her employment was terminated on
March 20, 2006. Kyla was not a member of the organization's pension plan. Kyla's employer paid her a
$68,000.00 retiring allowance. Calculate the non-eligible portion of the retiring allowance. - Answer:
$40,000.00