PAYROLL FUNDAMENTALS EOC STUDY EXAM QUESTIONS
WITH ANSWERS 2025/2026 GRADED A+
Reasonableness test - Requires an individual to examine the General Ledger account in
detail to ensure that all postings are in balance and seem reasonable
Year-over-year comparison - Compare each expense account for a certain time frame
to determine if there have been material changes
An organization's remittance frequency depends on: - Its average monthly withholding
amount for the second preceding calendar year
Four remitter types for source deductions - - Quarterly
- Regular
- Accelerated threshold 1
- Accelerated threshold 2
Quarterly remitter for source deductios - For new employers who have a monthly
remittance of less than $1,000.00 or for employers whose average monthly withholding
amount is less than $3,000.00
Regular remitter for source deductions - For employers whose average monthly
withholding amount is from $3,000 to $24,999.99 and for new employers who have not
been notified that they qualify for quarterly remittance
Accelerated threshold 1 remitter for source deductios - For employers whose average
monthly withholding amount is from $25,000 to $99,999.99
Accelerated threshold 2 remitter for source deductions - For employers whose average
monthly withholding amount is $100,000 or more
Due date for PR cheques dated Jan 1 - Mar 31 for quarterly remitters - April 15
Due date for PR cheques dated April 1 - June 30 for quarterly remitters - July 15
Due date for PR cheques dated July 1 - September 30 for quarterly remitters - October
15
Due date for PR cheques dated October 1 - December 31 for quarterly remitters -
January 15
Due date for regular remitters - The 15th of the following month
Due date for threshold 1 remitters for PR cheques dated the 1st to the 15th of the month
- The 25th of the same month
, Due date for threshold 1 remitters for PR cheques dated the 16th to the end of the
month - The 10th of the following month
Due dates for threshold 2 remitters - 3 business from the end of the period
4 PR cheque periods for threshold 2 remitters - - 1st to the 7th
- 8th to the 14th
- 15th to the 21st
- 22nd to the end of the month
The penalties for late source deduction remittances - - 3% if the payment is 3 business
days late
- 5% if the payment is 4-5 business days late
- 7% if the payment is 6-7 business days late
- 10% if the payment is 8 or more days late
Source deductions can be remitted via: - - Electronic payments
- Financial institution
- by mail
- by the service provider
If there is no remittance for source deductions employers must: - Notify the CRA via My
Business Account, using TeleReply or sending the remittance form by mail
Benefit Entitlement - The portion of a member's pension that is considered to have
accrued during the year
Pension Adjustments (PA) - The measure of the benefit that an individual earns in a
year in a regular registered pension plan (RPP)or a deferred profit sharing plan (DPSP)
Maximum Annual Benefit Limit - $3,025.56 for 2019 and $3,092.22 for 2020
Pension Credit - Reflects the value of the benefit that a member earns under a deferred
profit sharing plan, a defined contribution plan, or a defined benefit provision of a RPP
plan
Pension Adjustment formula - Used to calculate a pension credit for a deferred profit
sharing plan
(9 x benefit entitlement) - 600
Limit on contributions for retirement savings is set at - 18%
Under a defined benefit pension plan, a member may earn benefits at a maximum rate
of - 2% of compensation
WITH ANSWERS 2025/2026 GRADED A+
Reasonableness test - Requires an individual to examine the General Ledger account in
detail to ensure that all postings are in balance and seem reasonable
Year-over-year comparison - Compare each expense account for a certain time frame
to determine if there have been material changes
An organization's remittance frequency depends on: - Its average monthly withholding
amount for the second preceding calendar year
Four remitter types for source deductions - - Quarterly
- Regular
- Accelerated threshold 1
- Accelerated threshold 2
Quarterly remitter for source deductios - For new employers who have a monthly
remittance of less than $1,000.00 or for employers whose average monthly withholding
amount is less than $3,000.00
Regular remitter for source deductions - For employers whose average monthly
withholding amount is from $3,000 to $24,999.99 and for new employers who have not
been notified that they qualify for quarterly remittance
Accelerated threshold 1 remitter for source deductios - For employers whose average
monthly withholding amount is from $25,000 to $99,999.99
Accelerated threshold 2 remitter for source deductions - For employers whose average
monthly withholding amount is $100,000 or more
Due date for PR cheques dated Jan 1 - Mar 31 for quarterly remitters - April 15
Due date for PR cheques dated April 1 - June 30 for quarterly remitters - July 15
Due date for PR cheques dated July 1 - September 30 for quarterly remitters - October
15
Due date for PR cheques dated October 1 - December 31 for quarterly remitters -
January 15
Due date for regular remitters - The 15th of the following month
Due date for threshold 1 remitters for PR cheques dated the 1st to the 15th of the month
- The 25th of the same month
, Due date for threshold 1 remitters for PR cheques dated the 16th to the end of the
month - The 10th of the following month
Due dates for threshold 2 remitters - 3 business from the end of the period
4 PR cheque periods for threshold 2 remitters - - 1st to the 7th
- 8th to the 14th
- 15th to the 21st
- 22nd to the end of the month
The penalties for late source deduction remittances - - 3% if the payment is 3 business
days late
- 5% if the payment is 4-5 business days late
- 7% if the payment is 6-7 business days late
- 10% if the payment is 8 or more days late
Source deductions can be remitted via: - - Electronic payments
- Financial institution
- by mail
- by the service provider
If there is no remittance for source deductions employers must: - Notify the CRA via My
Business Account, using TeleReply or sending the remittance form by mail
Benefit Entitlement - The portion of a member's pension that is considered to have
accrued during the year
Pension Adjustments (PA) - The measure of the benefit that an individual earns in a
year in a regular registered pension plan (RPP)or a deferred profit sharing plan (DPSP)
Maximum Annual Benefit Limit - $3,025.56 for 2019 and $3,092.22 for 2020
Pension Credit - Reflects the value of the benefit that a member earns under a deferred
profit sharing plan, a defined contribution plan, or a defined benefit provision of a RPP
plan
Pension Adjustment formula - Used to calculate a pension credit for a deferred profit
sharing plan
(9 x benefit entitlement) - 600
Limit on contributions for retirement savings is set at - 18%
Under a defined benefit pension plan, a member may earn benefits at a maximum rate
of - 2% of compensation
