1
Payroll Fundamentals 1
RQ and CRA define a car allowance as reasonable if: - -Correct Answer-- The allowance
is based solely on business kilometres driven in a calendar year
- the amount provided is based on the following government-prescribed reasonable
guidelines
- $0.58 per km for the first 5,000 business km's in the year ($0,62 in the Yukon, NWT &
Nunavut)
- $0.51 thereafter ($0.56 for YK, NWT, NT)
- the employer does not reimburse the employee for expenses related to the same use
of the vehicle
Personal Driving includes: - -Correct Answer-- vacation travel
- driving to conduct personal business
- travel between home and work, even if the employer insists the employee drive the
vehicle home
Business driving includes: - -Correct Answer-- driving to existing and prospective clients,
points of call, and other office locations of the employer
- when an employee travels directly from home to a point of call, which is not the
employer's place of business where the employee regularly reports for work
- when the employees travels home directly from a point of call
Availability (automobiles) - -Correct Answer-The number of thirty-day periods that the
automobile is available to the employee for the current taxation year. The employee has
access to or control over the vehicle.
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Automobile - -Correct Answer-A motor vehicle that is designed or adapted to primarily
carry individuals on highways and streets, and has seating capacity of not more than the
driver and eight passengers
If a gift or award is given to an employee in cash - -Correct Answer-The amount is
considered pensionable, insurable and taxable to the employee, subject to all statutory
deductions
Overtime meal allowance is considered non-taxable if (RQ): - -Correct Answer-- overtime
is done at the employer's request and is expected to last for at least two consecutive
hours
- overtime is done rarely or on an occasional basis
- the meal expenses are reimbursed upon presentation of receipts
- the meal expenses reimbursed or the value of the meal provided is reasonable
The four categories of employment income - -Correct Answer-- Earnings
- Allowances
- Benefits
- Taxable expense reimbursement
Earnings - -Correct Answer-Dollar amounts the employer pays an employee for the work
they perform
Types of earnings - -Correct Answer-- a salary
- a rate for each hour worked
- a rate per piece of goods produced or picked
- a disability payment for time off work due to illness
- a payment for vacation time
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- a premium payment for overtime hours worked
- a premium payment for hours worked on shift
Allowances - -Correct Answer-Additional dollar amounts paid to employees for the use,
or anticipated use, of their personal property for business purposes
Benefits - -Correct Answer-Dollar values attributed to something the employer has either
provided to an employee or paid for on an employee's behalf
Expense Reimbursements - -Correct Answer-Dollar amounts paid to employees to cover
expenses that they incur while performing their job.
Regular payments - -Correct Answer-Have an established frequency, such as weekly-
paid salary or wages
Non-regular payments - -Correct Answer-payments that do not occur each pay period,
for example, a bonus or a retroactive adjustment
Salary - -Correct Answer-A fixed amount of money paid to an employee for each pay
period.
Salary per pay period - -Correct Answer-Annual salary / number of pay periods per year
Wages - -Correct Answer-Earnings which are based on the amount of time worked,
usually at a rate per hour or per day
Regular earnings - -Correct Answer-Hourly rate x pay period regular hours worked
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Payroll Fundamentals 1
RQ and CRA define a car allowance as reasonable if: - -Correct Answer-- The allowance
is based solely on business kilometres driven in a calendar year
- the amount provided is based on the following government-prescribed reasonable
guidelines
- $0.58 per km for the first 5,000 business km's in the year ($0,62 in the Yukon, NWT &
Nunavut)
- $0.51 thereafter ($0.56 for YK, NWT, NT)
- the employer does not reimburse the employee for expenses related to the same use
of the vehicle
Personal Driving includes: - -Correct Answer-- vacation travel
- driving to conduct personal business
- travel between home and work, even if the employer insists the employee drive the
vehicle home
Business driving includes: - -Correct Answer-- driving to existing and prospective clients,
points of call, and other office locations of the employer
- when an employee travels directly from home to a point of call, which is not the
employer's place of business where the employee regularly reports for work
- when the employees travels home directly from a point of call
Availability (automobiles) - -Correct Answer-The number of thirty-day periods that the
automobile is available to the employee for the current taxation year. The employee has
access to or control over the vehicle.
1
, 2
Automobile - -Correct Answer-A motor vehicle that is designed or adapted to primarily
carry individuals on highways and streets, and has seating capacity of not more than the
driver and eight passengers
If a gift or award is given to an employee in cash - -Correct Answer-The amount is
considered pensionable, insurable and taxable to the employee, subject to all statutory
deductions
Overtime meal allowance is considered non-taxable if (RQ): - -Correct Answer-- overtime
is done at the employer's request and is expected to last for at least two consecutive
hours
- overtime is done rarely or on an occasional basis
- the meal expenses are reimbursed upon presentation of receipts
- the meal expenses reimbursed or the value of the meal provided is reasonable
The four categories of employment income - -Correct Answer-- Earnings
- Allowances
- Benefits
- Taxable expense reimbursement
Earnings - -Correct Answer-Dollar amounts the employer pays an employee for the work
they perform
Types of earnings - -Correct Answer-- a salary
- a rate for each hour worked
- a rate per piece of goods produced or picked
- a disability payment for time off work due to illness
- a payment for vacation time
2
, 3
- a premium payment for overtime hours worked
- a premium payment for hours worked on shift
Allowances - -Correct Answer-Additional dollar amounts paid to employees for the use,
or anticipated use, of their personal property for business purposes
Benefits - -Correct Answer-Dollar values attributed to something the employer has either
provided to an employee or paid for on an employee's behalf
Expense Reimbursements - -Correct Answer-Dollar amounts paid to employees to cover
expenses that they incur while performing their job.
Regular payments - -Correct Answer-Have an established frequency, such as weekly-
paid salary or wages
Non-regular payments - -Correct Answer-payments that do not occur each pay period,
for example, a bonus or a retroactive adjustment
Salary - -Correct Answer-A fixed amount of money paid to an employee for each pay
period.
Salary per pay period - -Correct Answer-Annual salary / number of pay periods per year
Wages - -Correct Answer-Earnings which are based on the amount of time worked,
usually at a rate per hour or per day
Regular earnings - -Correct Answer-Hourly rate x pay period regular hours worked
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