PAYROLL FUNDAMENTALS 1 FINAL EXAM
SCRIPT 2026 QUESTIONS WITH ANSWERS
ALREADY PASSED
◉ Select the order of priority for withholding payroll deductions from an
employee's earnings. Answer: Statutory deductions, legal deductions,
union deductions, company-compulsory deductions, voluntary
deductions
◉ Registered Retirement Savings Plan contribution limits are based on
the lesser of: 18% of the employee's previous year's earned income or
the maximum annual Registered Retirement Savings Plan limit less
pension adjustments, less past service pension adjustments, plus any
pension adjustment reversals, plus any unused contribution room carried
forward from previous years. Answer: True
◉ A Requirement to Pay is issued by: Answer: Canada Revenue Agency
and Revenu Québec
◉ Which type of retirement plan would result in a taxable benefit for the
employee if the employer made the contribution? Answer: Registered
Retirement Savings Plan
, ◉ What type of garnishment is issued when an employee's creditor wins
a judgement in small claims court to collect an outstanding debt?
Answer: Garnishment Order
◉ If the garnishment percentage is not clearly stated in the Third Party
Demand document, the employer must: Answer: contact Canada
Revenue Agency and/or Revenu Québec immediately for a written
response
◉ Which of the following is not correct? Answer: A Registered
Retirement Savings Plan is a pension plan
◉ If an employee's regular net pay including compulsory and voluntary
deductions is not enough to satisfy a required garnishment, what must
the employer do? Answer: Arrange with the employee to reduce or
suspend voluntary deductions
◉ Severance Pay Answer: Under the Canada Labour Code, Part III,
employees who have 12 months of continuous service are entitled to the
greater of 2 days' wages at the regular rate, excluding overtime, for each
completed year of employment or 5 days' wages at the regular rate,
excluding overtime. $1,985.00 multiplied by 24 pay periods equals an
annual salary of $47,640.00. The annual salary divided by 260 days
equals a daily salary of $183.23. The daily salary multiplied by 8 days of
entitlement equals a severance pay of $1,465.84.
SCRIPT 2026 QUESTIONS WITH ANSWERS
ALREADY PASSED
◉ Select the order of priority for withholding payroll deductions from an
employee's earnings. Answer: Statutory deductions, legal deductions,
union deductions, company-compulsory deductions, voluntary
deductions
◉ Registered Retirement Savings Plan contribution limits are based on
the lesser of: 18% of the employee's previous year's earned income or
the maximum annual Registered Retirement Savings Plan limit less
pension adjustments, less past service pension adjustments, plus any
pension adjustment reversals, plus any unused contribution room carried
forward from previous years. Answer: True
◉ A Requirement to Pay is issued by: Answer: Canada Revenue Agency
and Revenu Québec
◉ Which type of retirement plan would result in a taxable benefit for the
employee if the employer made the contribution? Answer: Registered
Retirement Savings Plan
, ◉ What type of garnishment is issued when an employee's creditor wins
a judgement in small claims court to collect an outstanding debt?
Answer: Garnishment Order
◉ If the garnishment percentage is not clearly stated in the Third Party
Demand document, the employer must: Answer: contact Canada
Revenue Agency and/or Revenu Québec immediately for a written
response
◉ Which of the following is not correct? Answer: A Registered
Retirement Savings Plan is a pension plan
◉ If an employee's regular net pay including compulsory and voluntary
deductions is not enough to satisfy a required garnishment, what must
the employer do? Answer: Arrange with the employee to reduce or
suspend voluntary deductions
◉ Severance Pay Answer: Under the Canada Labour Code, Part III,
employees who have 12 months of continuous service are entitled to the
greater of 2 days' wages at the regular rate, excluding overtime, for each
completed year of employment or 5 days' wages at the regular rate,
excluding overtime. $1,985.00 multiplied by 24 pay periods equals an
annual salary of $47,640.00. The annual salary divided by 260 days
equals a daily salary of $183.23. The daily salary multiplied by 8 days of
entitlement equals a severance pay of $1,465.84.
