PAYROLL COMPLIANCE LEGISLATION
TEST BANK QUESTIONS WITH COMPLETE
ANSWERS ACCURATE REVIEW MATERIAL
⩥ 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
TEST BANK QUESTIONS WITH COMPLETE
ANSWERS ACCURATE REVIEW MATERIAL
⩥ 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
