PAYROLL COMPLIANCE LEGISLATION
STUDY GUIDE PRACTICE QUESTIONS AND
COMPLETE SOLUTIONS GRADED A+
⩥ Objective of Payroll
Answer: To pay employees on time and accurately in compliance with
the legislative requirements, for a full annual payroll cycle.
⩥ Main purpose of the payroll department
Answer: The department administers the payroll
⩥ Payroll refers to many things
Answer: The department administers the payroll.
The total number of people employed by an org.
The wages and salaries paid out in a year.
A list of persons to be paid and the amount due to each.
⩥ The three stakeholders (each stakeholders examples)
Answer: Government Stakeholder - Federal, Provincial & Territorial
Internal Stakeholder - Employers, Employees, Other departments
External Stakeholder - Benefit Carriers, Courts, Unions, Pension
providers, Charities, Third Party Admin, Outsource/Software vendors
,⩥ What is Legislation?
Answer: To laws enacted by a legislative body. What the rules are.
Payroll pros follow laws from two different levels (Federal and
Provincial/Territorial)
⩥ What is statutory?
Answer: Legislative requirements. Specific parts coming from the
legislation laws. They are enacted, created, or regulated by statute, a law
enacted by the legislative branch of a government.
⩥ Legislative
Answer: Having the power to create laws.
⩥ What is Regulation?
Answer: How the rules are to be applied
⩥ What is Compliance?
Answer: The observance of official requirements. Payroll pros follow
the two levels of laws (Federal and Provincial/Territorial) and the rules
from non-government groups (unions or company policies).
⩥ Employees would see two things deducted from their pay
Answer: Federal and provincial Taxes
,⩥ 3 Canada Labour Code
Answer: Part 1: Industrial Relations
Part 2: Occupational Health and Safety
Part 3: Labour Standards
⩥ What is a Contract of Service?
Answer: Employee relationship, a person agrees to work for an
employer full-time or part-time for a specified or indeterminate period of
time.
⩥ What is a Contract for Service?
Answer: Business relationship, a person is hired to do specific tasks and
do the work their way.
⩥ Factors for Contracts
Answer: CRA uses two steps to figure out the relationship between the
workers and payers (outside of Quebec)
Step 1: CRA checks what both worker and the employer intended when
they agreed to work together
Step 2: CRA checks specific factors to find that relationship like control,
tool, subcontracting, financial risks, responsibility for
, investment/management, opportunity for profit, other factors like written
contracts.
⩥ CRA Form - CPT1
Answer: If a company doesn't know whether they are employee or self-
employed, they fill out the CPT 1 form : Request for a CPP/EI ruling -
Employee or Self-employed?
⩥ 4 types of competencies
Answer: Delivers Payroll
Ensures Compliance
Embodying a Service Mindset
Partners Strateggically with the Business
⩥ The rates for calculating CPP contributions are changed by...
Answer: Federal gov through regulations
⩥ Stakeholders
Answer: are the individuals, groups, and agencies, internal and external
to the org, that share interest in function and output of the payroll
department.
⩥ Employee relationships must withhold
STUDY GUIDE PRACTICE QUESTIONS AND
COMPLETE SOLUTIONS GRADED A+
⩥ Objective of Payroll
Answer: To pay employees on time and accurately in compliance with
the legislative requirements, for a full annual payroll cycle.
⩥ Main purpose of the payroll department
Answer: The department administers the payroll
⩥ Payroll refers to many things
Answer: The department administers the payroll.
The total number of people employed by an org.
The wages and salaries paid out in a year.
A list of persons to be paid and the amount due to each.
⩥ The three stakeholders (each stakeholders examples)
Answer: Government Stakeholder - Federal, Provincial & Territorial
Internal Stakeholder - Employers, Employees, Other departments
External Stakeholder - Benefit Carriers, Courts, Unions, Pension
providers, Charities, Third Party Admin, Outsource/Software vendors
,⩥ What is Legislation?
Answer: To laws enacted by a legislative body. What the rules are.
Payroll pros follow laws from two different levels (Federal and
Provincial/Territorial)
⩥ What is statutory?
Answer: Legislative requirements. Specific parts coming from the
legislation laws. They are enacted, created, or regulated by statute, a law
enacted by the legislative branch of a government.
⩥ Legislative
Answer: Having the power to create laws.
⩥ What is Regulation?
Answer: How the rules are to be applied
⩥ What is Compliance?
Answer: The observance of official requirements. Payroll pros follow
the two levels of laws (Federal and Provincial/Territorial) and the rules
from non-government groups (unions or company policies).
⩥ Employees would see two things deducted from their pay
Answer: Federal and provincial Taxes
,⩥ 3 Canada Labour Code
Answer: Part 1: Industrial Relations
Part 2: Occupational Health and Safety
Part 3: Labour Standards
⩥ What is a Contract of Service?
Answer: Employee relationship, a person agrees to work for an
employer full-time or part-time for a specified or indeterminate period of
time.
⩥ What is a Contract for Service?
Answer: Business relationship, a person is hired to do specific tasks and
do the work their way.
⩥ Factors for Contracts
Answer: CRA uses two steps to figure out the relationship between the
workers and payers (outside of Quebec)
Step 1: CRA checks what both worker and the employer intended when
they agreed to work together
Step 2: CRA checks specific factors to find that relationship like control,
tool, subcontracting, financial risks, responsibility for
, investment/management, opportunity for profit, other factors like written
contracts.
⩥ CRA Form - CPT1
Answer: If a company doesn't know whether they are employee or self-
employed, they fill out the CPT 1 form : Request for a CPP/EI ruling -
Employee or Self-employed?
⩥ 4 types of competencies
Answer: Delivers Payroll
Ensures Compliance
Embodying a Service Mindset
Partners Strateggically with the Business
⩥ The rates for calculating CPP contributions are changed by...
Answer: Federal gov through regulations
⩥ Stakeholders
Answer: are the individuals, groups, and agencies, internal and external
to the org, that share interest in function and output of the payroll
department.
⩥ Employee relationships must withhold
