Canadian Payroll Compliance Legislation - Chapter 2 Exam -
Questions with Correct Answers/ Latest Version (2024/2025) / 100% Pass General CRA payroll com pliance requirements - ✔✔Withhold the statutory deductions from employees' pay for income tax, CPP contributions and EI premiums and remit to CRA as required by legislation. CRA payroll compliance requirements for CPP - ✔✔Deduct CPP contributions from emp loyee's pensionable earnings and remit these amounts, along with the employer's portion, to the CRA. CRA payroll compliance requirements for income tax (except Quebec employees) - ✔✔Deduct the combined federal and provincial/territorial income tax from th e employee's gross pay and remit these amounts to the CRA. CRA payroll compliance requirements for income tax for Quebec employees. - ✔✔Deduct the federal income tax from the employee's gross pay and remit these amounts to the CRA. Quebec provincial incom e tax is paid directly to Revenu Quebec. CRA payroll compliance requirements for EI - ✔✔Deduct EI premiums from employee's insurable earnings and remit these amounts, along with the employer's portion, to the CRA. Employer CPP contribution amount - ✔✔Equal to the employee's contribution amount. Employer EI premium amount - ✔✔1.4 times the employee's premium amount. Statutory deductions - ✔✔Deductions required under legislative statute. The first deductions withheld from an employee's gross pay. Non -com pliance penalties on late remittances over $500. - ✔✔-3% plus interest for 1 to 3 days late. -5% plus interest for 4 to 5 days late. -7% plus interest for 6 to 7 days late. -10% plus interest for 8 or more days late. Non -compliance penalties on amounts du e for failure to withhold and/or remit statutory deductions over $500 - ✔✔-10% plus interest on the first occurrence. -20% plus interest for each subsequent occurrences in the same calendar year if failure was made knowingly or due to gross negligence. Reason to incur penalties on amounts less than $500 - ✔✔Willful delay or deficiency. CRA responsibilities under the Canadian Pension Plan Act - ✔✔-Determine if an individual's type of employment is pensionable. -Determine types of earnings considered pens ionable. -Ensure payroll contributions are deducted, remitted and reported as required by legislation. -Collect amounts owed from overpayments of CPP and Old Age Security benefits. CRA responsibilities under the Employment Insurance Act - ✔✔-Determine if an individual's type of employment is insurable -Determine types of earnings considered insurable. -Ensure payroll contributions are deducted, remitted and reported as required by legislation. -Determine how many insurable hours an individual has. -Collect amounts owed from overpayments of EI benefits. ESDC - ✔✔Employment and Social Development Canada ESDC responsibilities under the Canadian Pension Plan Act - ✔✔-Amend regulations made under the Canada Pension Plan Act. -Keep records of each individual's CPP contributions and pensionable earnings
Questions with Correct Answers/ Latest Version (2024/2025) / 100% Pass General CRA payroll com pliance requirements - ✔✔Withhold the statutory deductions from employees' pay for income tax, CPP contributions and EI premiums and remit to CRA as required by legislation. CRA payroll compliance requirements for CPP - ✔✔Deduct CPP contributions from emp loyee's pensionable earnings and remit these amounts, along with the employer's portion, to the CRA. CRA payroll compliance requirements for income tax (except Quebec employees) - ✔✔Deduct the combined federal and provincial/territorial income tax from th e employee's gross pay and remit these amounts to the CRA. CRA payroll compliance requirements for income tax for Quebec employees. - ✔✔Deduct the federal income tax from the employee's gross pay and remit these amounts to the CRA. Quebec provincial incom e tax is paid directly to Revenu Quebec. CRA payroll compliance requirements for EI - ✔✔Deduct EI premiums from employee's insurable earnings and remit these amounts, along with the employer's portion, to the CRA. Employer CPP contribution amount - ✔✔Equal to the employee's contribution amount. Employer EI premium amount - ✔✔1.4 times the employee's premium amount. Statutory deductions - ✔✔Deductions required under legislative statute. The first deductions withheld from an employee's gross pay. Non -com pliance penalties on late remittances over $500. - ✔✔-3% plus interest for 1 to 3 days late. -5% plus interest for 4 to 5 days late. -7% plus interest for 6 to 7 days late. -10% plus interest for 8 or more days late. Non -compliance penalties on amounts du e for failure to withhold and/or remit statutory deductions over $500 - ✔✔-10% plus interest on the first occurrence. -20% plus interest for each subsequent occurrences in the same calendar year if failure was made knowingly or due to gross negligence. Reason to incur penalties on amounts less than $500 - ✔✔Willful delay or deficiency. CRA responsibilities under the Canadian Pension Plan Act - ✔✔-Determine if an individual's type of employment is pensionable. -Determine types of earnings considered pens ionable. -Ensure payroll contributions are deducted, remitted and reported as required by legislation. -Collect amounts owed from overpayments of CPP and Old Age Security benefits. CRA responsibilities under the Employment Insurance Act - ✔✔-Determine if an individual's type of employment is insurable -Determine types of earnings considered insurable. -Ensure payroll contributions are deducted, remitted and reported as required by legislation. -Determine how many insurable hours an individual has. -Collect amounts owed from overpayments of EI benefits. ESDC - ✔✔Employment and Social Development Canada ESDC responsibilities under the Canadian Pension Plan Act - ✔✔-Amend regulations made under the Canada Pension Plan Act. -Keep records of each individual's CPP contributions and pensionable earnings
