Payroll Fundamentals 1 Exam Study Guide 2024/2025 with Complete Solutions

Payroll Fundamentals 1 Exam Study Guide 2024/2025 with Complete Solutions 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. 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