PAYROLL PROCESSING FINAL EXAM PRL2 - Payroll Processing Final Examination Student Name: ___________________________________________ Student Number: _________________________________________ Instructor: ______________________________________________ Date: ______________________________________________ Instructions 1. 2. 3. 4. 5. Read all questions CAREFULLY! Attempt ALL questions CHOOSE THE BEST POSSIBLE ANSWER!!!!! Total time allotted is 240 minutes Only the following aids permitted:  The Student Information Guide (with no added written or inserted documentation)  Blank scrap paper  A non-programmable calculator  A ruler Results Total /70 1 PAYROLL PROCESSING FINAL EXAM 1. Macy's life insurance coverage through her employer's group plan is 2 times her annual salary of $33,000.00. Her employer pays the insurer 100% of the cost of her life insurance coverage at a premium rate of $2.00 per $1,000.00 of coverage per month. Calculate Macy's monthly taxable benefit. (2) Your answer: 2. Square One Invitations has its head office in downtown Regina, Saskatchewan. The employees at this location have their $200.00 monthly parking fee, plus taxes, paid for by the company. Calculate the bi-weekly parking taxable benefit for the employees. Your answer: (2) 3. Sally Chapel works for Adams Photography in Alberta and earns an annual salary of $53,500.00 paid on a bi-weekly basis. The company’s benefit package includes group term life insurance coverage of two times annual salary; the group term life insurance premium rate is $0.74 per $1,000.00 of coverage. Helen receives a taxable car allowance of $25.00 every pay for using her own car to go to client appointments. Her federal and provincial TD1 claim codes are 3. Helen will not reach the Canada Pension Plan or Employment Insurance annual maximums this pay period. Calculate the employee’s net pay, following the order of the steps in the net pay template. Calculate Helen's net pay. (5) 2 PAYROLL PROCESSING FINAL EXAM 4. Simone works for Successful Business Inc. in Québec and earns an annual salary of $30,500.00 paid on a semi-monthly basis. In addition to her regular salary, Simone's employer provides group term life insurance coverage through a third party of two times her annual salary. The monthly group term life insurance premiums are $0.48 per $1,000.00 of coverage, excluding taxes. Her employer also provides private health insurance benefits with a monthly premium of $260.00, excluding taxes. The tax on insurance premiums in Québec is 9%. Her federal TD1 claim code is 2 and her provincial TP-1015.3-V deduction code is B. Simone will not reach the Québec Pension Plan, Employment Insurance or Québec Parental Insurance Plan annual maximums this pay period. (5) Calculate the employee’s net pay, following the order of the steps in the net pay template. 5. Claire Chen works for Gibson Catering in Alberta and is provided with a companyowned automobile. The automobile was in Claire’s possession for 365 days. Of the 46,629 kilometres driven, 24,143 kilometres were for business purposes. The purchase price of the vehicle was $28,760.00, excluding the GST calculated at 5%. Claire requested in writing that Gibson Catering use the optional operating cost method if all the conditions apply. She did not reimburse the company for any of the expenses associated with the automobile. Calculate the taxable income. (3) . 3 PAYROLL PROCESSING FINAL EXAM 6. Joseph works for Northwest Gaskets in Alberta. He earns $33,800.00 per year and is paid biweekly. His TD1 federal and provincial claim codes are 3. In March 2016, Joseph receives a production bonus for meeting his 2015 targets. The bonus of $4,940.00 is paid separately from his regular pay. Calculate the income tax on Joseph's bonus payment. (3) 7. Fred has worked for an advertising company in British Columbia since May 5, 1986. His employment was terminated on August 31, 2013, and he was paid a $47,000.00 retiring allowance. His company did not have a pension plan, a pension fund or a deferred profit sharing plan. Calculate the eligible portion of the retiring allowance based on Fred's service. Your answer: (3) 8. Jean-Claude is receiving a retroactive adjustment on his monthly pay due to paperwork being delayed. Jean-Claude's total retroactive adjustment is $832.40 that will be paid together on the same cheque with his new monthly salary of $3,221.24. Calculate JeanClaude's Québec Employment Insurance premium for this pay. He will not reach the annual maximum premium with this payment. Your answer: (2) 4 PAYROLL PROCESSING FINAL EXAM 9. The employer will contract with an insurer to provide employees with coverage for various benefits that may include: accidental death and dismemberment insurance (1) employee assistance programs short/long term disability all of the above 10. Fred's Québec employer gave him a stereo worth $300.00 including taxes as a Christmas gift. He also received a camera for his birthday worth $200.00 including taxes within the same year. What is the provincial taxable benefit? $0.00 $200.00 $300.00 (1) $500.00 11. Erica is a commissioned salesperson. Her commission plan pays her 5% on the first $25,000.00 in monthly sales, 7% on monthly sales of $25,000.01 to $80,000.00 and 10% on monthly sales in excess of $80,000.00. In May she sold $125,000.00 of products. Calculate Erica's commissions for May. Your answer: (2) 12. Fred White is given a credit card by the organization to buy gas for his car at Sunny Fuels. This is considered a(n): taxable benefit taxable allowance non-taxable allowance expense reimbursement (1) 13. The method for calculating income taxes on commissions varies according to: the regularity with which the payments are made whether the payments are paid separately, or in combination with a salary or advance whether or not the employee is claiming the expenses they incurred to earn the commission income all of the above (1) 5 PAYROLL PROCESSING FINAL EXAM 14. David Brown was dismissed from his job after working for the company for five years. On termination, he was paid his regular semi-monthly pay of $2,000.00, $440.00 outstanding vacation pay, $10,000.00 legislated wages in lieu of notice and $5,000.00 retiring allowance. Calculate the amount to be reported in Block 15B of the Record of Employment. $29,440.00 $32,440.00 (1) $36,440.00 $41,440.00 15. Martin requested reimbursement from his employer for $100.00 for safety boots that he purchased to wear at his construction job. He is unable to locate his receipt for the purchase. The reimbursement is considered: taxable because they would not be considered required on a construction site non-taxable because they are required for safety, purchased by Martin and the amount is reasonable fully taxable because the amount is not considered reasonable (1) taxable because he did not provide a receipt for the purchase 16. The total of an employee's earnings, taxable allowances, cash taxable benefits is included in: gross pensionable/taxable income gross insurable earnings gross earnings all of the above (1) 17. Maria receives $0.25 per kilometre for the first 2,500 business kilometres she drives using her own vehicle and $0.35 for each business kilometre after. She does not receive any other compensation for the use of the car. This is considered a(n): non-cash taxable benefit taxable allowance earning non-taxable allowance (1) 18. Calculate the Québec Parental Insurance Plan premium on a retiring allowance of $12,000.00 paid to an employee in Québec. $65.76 $182.40 $225.60 Not subject to Québec Parental Insurance Plan premiums (1) 6 PAYROLL PROCESSING FINAL EXAM 19. An error was made on Ivan's pay. Overtime of $143.00 is to be paid on a separate cheque from his regular weekly pay. Calculate the Canada Pension Plan contribution on the overtime payment. $0.42 $3.75 $7.08 $7.61 (1) 20. Under the Canada Labour Code, Part III where the employee's wages vary, severance pay is calculated using an average of the employee's earnings, exclusive of overtime, for how many of the last completed weeks of employment? Two Three Four Five (1) 21. An employer can provide tax exempt parking to an employee with a physical disability under which circumstances? Only if the employee is required to travel away from their normal place of business Only if there is a distinct and regular requirement to use their vehicle to perform their job Only when an employer provides scramble parking Under any circumstances (1) 22. An interruption of earnings occurs when an employee: earns less than 60% of their normal weekly earnings due to illness has seven consecutive calendar days without work or insurable earnings quits their job all of the above (1) 23. The Government of Nunavut imposes a tax on employee's remuneration. What is the percentage of this tax? 1% 1.88% 2% 4.95% (1) 7 PAYROLL PROCESSING FINAL EXAM 24. How many weeks of insurable earnings are required to be reported in Block 15C for employers with a weekly pay frequency issuing paper Records of Employment? 12 24 27 53 (1) 25. A sale of business occurs and all employees leave work one day and return to work the next day to assume their regular duties for the new owner who also is given all the payroll records from the previous employer. When must the Records of Employment be issued? Not required Within seven calendar days of the change of ownership Within five calendar days of the change of ownership (1) Within five business days of the change of ownership 26. Calculate the tax on a death benefit payable to the widower of an employee for $25,000.00 in Prince Edward Island. Your answer: (1) 27. In order to receive a reduction in federal income tax deductions and provincial income tax deductions outside of Québec, employees must apply to the Canada Revenue Agency for a reduction using form: T2201 TD1 TP-1015.3-V T1213 (1) 28. A non-cash taxable benefit is applied when free or subsidized parking is provided: when an employer pays for parking costs incurred by an employee who is travelling away from the normal place of business scramble parking to an employee in the downtown of a city where a parking fee is normally charged to a physically disabled employee (1) 8 PAYROLL PROCESSING FINAL EXAM 29. Net taxable income is the total of: an employee's earnings, taxable allowances and taxable benefits, less any deductions allowed by Canada Revenue Agency and Revenu Québec an employee's earnings, taxable allowances and taxable benefits an employee's earnings and taxable benefits, less any deductions allowed by Canada Revenue Agency and Revenu Québec an employee's earnings, less any deductions allowed by Canada Revenue Agency and Revenu Québec (1) 30. Terminations of employment are: employer-initiated employee-initiated employer- or employee-initiated none of the above (1) 31. In most cases, if there is not an employee-employer relationship in existence, payments made would: be subject to Canada/Québec Pension Plan contributions be subject to Employment Insurance premiums not be subject to either Canada/Québec Pension Plan contributions or Employment Insurance premiums (1) be subject to Canada Pension Plan contributions and Employment Insurance premiums 32. Employer paid private health insurance is a taxable benefit in which province(s) Saskatchewan Québec Ontario and Alberta (1) British Columbia and Québec 33. Etienne was employed from July 15, 1988 through January 10, 2007. He was fully vested in the organization's pension plan at the time he received the retiring allowance. Calculate the number of years eligible for the $2,000.00 portion of a retiring allowance. 1 (1) 2 8 18 9 PAYROLL PROCESSING FINAL EXAM 34. Which of the following types of earnings are subject to the Employer Health Tax in Ontario? Legislated wages in lieu of notice Retiring allowances Pension payments All of the above (1) 35. Trucking Company has employees who report to work at and are paid from the company's location in Newfoundland and Labrador. The employer also has employees who report to work at and are paid from their location in British Columbia. What remuneration is subject to the Health and Post-Secondary Education Tax? Taxable remuneration for employees working in British Columbia Taxable remuneration for employees working in Newfoundland and Labrador Taxable remuneration for employees working in both Newfoundland and Labrador and British Columbia None of the above (1) 36. Which of the following earnings in Newfoundland and Labrador would be excluded from taxable remuneration with respect to the Health and Post-Secondary Education Tax? Taxable benefits provided to an employee Commissions paid to an employee Pension paid after an employee retires (1) Shift differentials paid to an employee 37. Which of the following provinces has introduced its own privacy bill? Prince Edward Island Ontario British Columbia New Brunswick 38. Earnings from employment are: insurable pensionable taxable all of the above (1) (1) 10 PAYROLL PROCESSING FINAL EXAM 39. When completing Block 15C on the electronic Record of Employment, what is recorded in the pay period (PP) 1 field? The insurable earnings for the smallest amount paid The insurable earnings for the most recent pay (1) The insurable earnings for the largest amount paid The insurable earnings for the first pay 40. Marilyn has worked in insurable employment for 36 weeks prior to her termination. Her employer produces paper Records of Employment. What is her employer encouraged to do to reduce the need for follow-up after the Record of Employment is submitted to Service Canada? Attach a worksheet to the Record of Employment with the detail of weeks 28 to 53 Provide comments in Block 18 Attach a worksheet to the Record of Employment with the details of weeks 28 to 36 No action required (1) 41. The Record of Employment is used by: Canada Revenue Agency Workers' Compensation Board Service Canada none of the above (1) 42. Prince Manufacturing is located in Winnipeg, Manitoba and is preparing its Manitoba Health and Post-Secondary Education Tax Levy filing. The total amount of its annual gross Manitoba payroll is $1,682,759.00. Calculate the company’s tax levy owing. Your answer: (2) 43. Carol is a salesperson paid solely by commission and is paid monthly. In September, Carol earned a total of $7,500.00 in commissions and received a mid-month advance of $2,000.00. What amount would be used at the end of September to calculate statutory deductions? Your answer: (2) 11 PAYROLL PROCESSING FINAL EXAM 44. Marek is employed in Manitoba and has received a $750.00 set of golf clubs (including taxes) from his employer in recognition of his 50th birthday. What is the value of the non-cash taxable benefit that will be included in Marek's income? Your answer: (1) 45. What do employment/labour standards legislate? a. Length of any notice period that must be given to the employee b. Any payments due on termination c. a & b d. None of the above (1) 46. Which of the following types of income would be excluded when calculating Employer Health Tax in Ontario? Retiring allowance Salary Legislated wages in lieu of notice (1) Vacation pay 47. Calculate the Québec Parental Insurance Plan Insurance premium on a semimonthly director's fee of $10,000.00. Your answer: 48. (1) Sandra works in Manitoba for an employer who provides all employees with an option to purchase additional life insurance coverage at a monthly rate (including taxes) of $0.29 per $1,000.00 of insurance coverage. Sandra has enrolled for $175,000.00 of coverage. Calculate Sandra's weekly payroll deduction. Your answer: (2) 49. The information that is not required to appear on the statement of wages in all jurisdictions is: itemized deductions employee name job title rate of pay and hours of work at each rate (1) 50. Jean-Michel has worked for an advertising company in British Columbia since May 5, 1985. His employment was terminated on August 31, 2011, and he was paid a $58,000.00 retiring allowance. His company did not have a pension plan, a pension fund or a 12 PAYROLL PROCESSING FINAL EXAM deferred profit sharing plan. Calculate the eligible portion of the retiring allowance based on Jean-Michel's service. Your answer: (4) 51. Pat works in British Columbia and is paid a bi-weekly commission payment of $5,200.00. Calculate her Employment Insurance premium on this commission. Your answer: (1) 52. In Block 18 of the Record of Employment, what comments should be entered for employees who are paid solely by commission or are paid salary plus irregularly paid commission? Commissioned employee Commission paid Commission averaged No comments are entered (1) 53. Stephanie is paid regular bi-weekly earnings of $1,125.00. This pay she will also receive her commission payment of $345.00. Calculate Stephanie's Canada Pension Plan contribution for this pay. Your answer: (1) 54. Charlotte works for Bonanza Sales in Québec where she is a commissioned salesperson. Bonanza Sales pays their commissioned salespeople on a straight commission of sales method at 0.5%. Charlotte is owed her monthly commission payment based on $815,000.00 of products sold. She did not receive an advance. Charlotte's federal TD1 claim code is 2 and provincial TP-1015.3-V claim code is B. She will not reach the Québec Pension Plan, Employment Insurance or Québec Parental Insurance Plan annual maximums this pay period. (5) Calculate the employee’s net commission pay, following the order of the steps in the net pay template. 13 PAYROLL PROCESSING FINAL EXAM 55. Freehold Foods, an Ontario organization, will be terminating the employment of Annette Rose on January 30, 2015, the last day of the pay period. Annette started with Freehold Foods on March 15, 2007. Complete the paper Record of Employment for Annette based on the information provided in the following chart. The company is not providing the equivalent of 53 weeks of pay information as part of the Variable Best Weeks initiative. All dates must be entered in the format DDMMYYYY. Item Information Pay period type bi-weekly Social Insurance Number 685175235 First day worked March 15, 2007 Last day for which paid January 30, 2015 (10) Final pay period ending date January 30, 2015 Hours worked per pay 80.00 Pay period earnings 2,071.15 Vacation pay rate 10% Vacationable earnings 56,500.00 Pay in lieu of notice weeks 8 weeks Severance weeks 10 weeks 14 PAYROLL PROCESSING FINAL EXAM 56. Mali works in Ontario, earns an annual salary of $36,400.00 and is paid semi-monthly . She was advised on September 14 of the current year that her employment was being terminated effective immediately, due to downsizing and restructuring. Mali has been employed by the company for 5.50 year(s). Calculate Mali's wages in lieu of notice payment. Your answer: (4) 15 PAYROLL PROCESSING FINAL EXAM 57. Jean-Michel has worked for an advertising company in British Columbia since May 5, 1985. His employment was terminated on August 31, 2013, and he was paid a $36,000.00 retiring allowance. His company did not have a pension plan, a pension fund or a deferred profit sharing plan. Calculate the eligible portion of the retiring allowance based on Jean-Michel's service. Your answer: (4) 16 Mid-Term Exam Module - Payroll Processing NAME_______________ ID_____________________ MARKS__________________ 1 1. Prince Manufacturing is located in Winnipeg, Manitoba and is preparing its Manitoba Health and Post-Secondary Education Tax Levy filing. The total amount of its annual gross Manitoba payroll is $1,682,759.00. Calculate the company’s tax levy owing (1) 2. Kim parks her car downtown in Québec City where the head office is located. The employees who work downtown have their monthly parking fees of $250.00 including taxes paid by their organization directly to the parking lot. What is Kim's semi‐monthly non‐cash taxable benefit? A. $125.00 (1) B. $132.74 C. $143.78 D. $287.56 3. Jamie is married with three children, works in British Columbia and is paid bi weekly. Her employer pays 50% of her family coverage health care premiums. What amount is included in Julie's taxable income each pay period? (1) 4. The British Columbia provincial health insurance premium rate per month for a family of two is: (1) 5. An employee, who lives in Québec and works at an employer’s permanent establishment in Ontario, will have income tax deducted based on _________ tax rates and file their personal income tax return, subject to _________ tax rates. a. . Ontario, Ontario b. . Québec, Ontario c. . Ontario, Québec d. . Québec, Québec (1) 6. True or False. New employees must complete a federal Personal Tax Credits Return –TD1 even if they are only claiming the basic personal amount. (1) 2 7. Which of the following types of earnings are subject to the Employer Health Tax in Ontario? Legislated wages in lieu of notice Retiring allowances Pension payments All of the above (1) 8. Teresa drove a company car 15,000 personal kilometres in 2015. The total kilometres driven for the year were 25,000 kilometres. The actual operating costs for this automobile were $868.00, including taxes. What would Teresa's portion of these operating costs be if she was going to reimburse the organization? (1) 9. Tammy's 2015 total automobile benefit was $4,856.00. This amount included her standby charges of $3,256.00 and operating cost benefit of $1,600.00. Based on these numbers, calculate Tammy's 2015 estimated bi‐weekly automobile non‐cash taxable benefit. (1) 10. Bonavista Manufacturing is located in St. John’s, Newfoundland and Labrador and is preparing its annual filing for the Health and Post-Secondary Education Tax. Its total Newfoundland and Labrador remuneration is $1,652,385.00. Calculate Bonavista Manufacturing’s employer tax owing (1) 3 11. Mary Ann took clients to lunch and submitted the receipt to accounts payable with her expense claim. This is considered a(n): A. taxable expense (1) B. taxable benefit C. cash allowance D. expense reimbursement 12. Trucking Company has employees who report to work at and are paid from the company's location in Newfoundland and Labrador. The employer also has employees who report to work at and are paid from their location in British Columbia. What remuneration is subject to the Health and Post-Secondary Education Tax? Taxable remuneration for employees working in British Columbia Taxable remuneration for employees working in Newfoundland and Labrador Taxable remuneration for employees working in both Newfoundland and Labrador and British Columbia None of the above (1) 13. If a combination allowance of a flat dollar amount and a per kilometre amount is paid for the same use of the automobile, they are considered _____________________(1) 14. A Québec employee has received three non‐cash gifts in the current year worth $150.00, $200.00, and $250.00. What amount is provincially taxable? (1) 15. Reimbursements of meal expenses incurred by an employee when conducting business are ______________________ income. (1) 16. Business driving refers to any driving by an employee for business purposes not including: A. driving to existing and prospective clients B. travel between home and work (1) C. travelling directly from home to a point of call D. when the employee travels home from a point of call 4 17. Player Flooring, located in Pointe Claire, Québec has a weekly pay period. France Lavergne works in the shipping/receiving department, earns $18.50 per hour and works 40 regular hours per week. France works overtime every week; in this pay period she worked 4 hours overtime each day from Monday through Thursday. The organization pays employees 1½ times their regular hourly rate for overtime hours worked and provides a $20.00 meal allowance per day to employees who work overtime. France has a claim code of 3 on her federal TD1 and a deduction code of C on her TP1015.3‐V. Calculate France’s net pay. (7) 18. Out of the following group sickness and accident insurance plans, the non‐cash taxable benefit for all provinces and territories is (1) a. Short term disability b. Long term disability c. Accident insurance plans d. All of the above 19. The insurance levy in Manitoba is ______________.(1) 20. Paramedical service is the _______________________ benefit in Quebec. (1) 21. If the employer pays the cost of an employee’s expenses directly to the provider of the treatment, the amount the employer pays would be considered a ___________________ benefit to the employee (1) 5 22. The salary, employee earns in when working in Nunavut and Northwest territories is subject to a. CPP and EI b. Federal/Territorial taxes c. Payroll taxes d. All of the above (1) 23. The province of British Columbia funds its health care through premiums collected from _________________of the province. a. Employees b. Employers c. Residents d. All of the above (1) 24. Jonny took $20,000 loan from his employer, with an agreement to pay $1000 instalment every month, at 3% interest when the government rate was 5%. Jonny had paid 3 instalments. Calculate the taxable benefit in the 4th month.(1) 25. An Ontario employer pays 50% of their employees' monthly group term life insurance premium. Coverage is $0.90 per $1,000.00 based on two (2) times annual salary of $34,000.00. The premium is subject to 8% sales tax. Calculate the weekly non‐cash taxable benefit. (1) 26. What is the operating cost benefit for a company‐owned or company‐leased automobile which was driven 15,000 personal kilometres? (1) 6 27. Claire Rozon works for Lebrun Ind. in Montréal and has a company‐leased automobile for her use during the year. Given the following information, calculate Claire’s annual taxable benefit. Claire has asked the company to use the optional method of calculating her operating cost benefit. a. Monthly cost of the automobile $400 b. GST on monthly cost (5.00%) $ 20.00 c. QST on monthly cost (9.975%) $ 40 d. Days available (Jan 1 – Dec. 31, of the current year) 365 e. Total kilometres driven 50,000 f. Personal kilometres driven 22,000 (2) g. Employee reimbursement $ 0.00 28. Kenneth works in Manitoba and is paid an annual salary of $41,115.00, which is paid semi‐ monthly. Kenneth is also provided with group term life insurance with a monthly premium of $54.00 including all taxes. The employer pays 50% of this premium. Calculate Kenneth's Employment Insurance premium per pay period. (1) 7 29. Marc is an accounts payable administrator for a large retail clothing chain in Québec. He earns $33,000.00 annually, paid bi‐weekly. Marc’s TD1 claim code is 1 and his TP1015.3‐V deduction code is A. As part of the 100% employer‐paid benefit package, Marc has group term life insurance coverage of two times his annual salary. The company pays $0.85 per $1,000 of coverage for the group term life insurance coverage. Each administrative staff member receives an employer‐paid parking spot at head office, located in downtown Montréal, where the fair market value of parking in the vicinity is $250.00 per month, plus tax. Parking benefits are assessed on a pay period basis. Marc receives a taxable car allowance of $75.00 per pay for using his own automobile for business purposes Calculate Net Pay. (5) 30. Michelle Laframboise sits on the Board of Directors for a Québec organization and receives a quarterly director’s fee of $9,300.00. Michelle’s TD1 and TP‐1015.3‐V codes are 1 and A. Michelle is not an employee of the organization. Calculate her net payment. (3) 8 31. One of the senior lawyers at Corneau & Corneau, a prominent Québec law firm, passed away after a brief illness. The company paid a death benefit to the former employee’s spouse in the amount of $50,000.00. Calculate the net death benefit to be paid. (2) 32. Judy currently earns a bi‐weekly salary of $1,250.00 and the federal and Alberta TD1s on file show claim codes of 2. The union recently negotiated a new contract and Judy's salary has been increased to $1,300.00. There has been a lapse of 5 pay periods since the increase should have taken effect. Calculate Judy's income tax for both the regular payment and the retroactive increase. This will be paid on one check (3) 33. Sena works for S Jay Inc. in Alberta. He earns $36,400.00 per year and is paid bi‐weekly. His federal and provincial claim codes from his TD1 on file are 3. In March 2014, Sena receives a production bonus for meeting all targets in 2013. His production bonus is $5,200.00 and is paid separately from his regular pay. Calculate the income tax on Sena's bonus payment. (3) 9 34. Judy works in Alberta and earns an annual salary of $40,800.00 paid on a weekly basis. She has received an increase in her salary to $41,800.00 annually. The Payroll Department was not notified of the increase immediately, therefore 3 pay periods have elapsed. Judy's regular pay has already been processed so she will be paid her retroactive increase on a separate cheque. Her federal and provincial TD1 claim codes are 1. She will not reach the Canada Pension Plan or Employment Insurance annual maximums this pay period. Calculate net pay on retroactive increase and new salary (4) 35. Which of the following remuneration is not subject to Employer Health Tax in Ontario? Pension (1) Annuity Retiring allowance All of the above 36. Which of the following earnings in Newfoundland and Labrador would be excluded from taxable remuneration with respect to the Health and Post-Secondary Education Tax? Taxable benefits provided to an employee Commissions paid to an employee Pension paid after an employee retires (1) Shift differentials paid to an employee 37. What is an employer levy? Money raised under government authority Money raised from insurance premiums Money raised from donations Money raised through payroll deductions (1) 10 38. Statutory deductions, which are required by legislation, are withheld from employment income in the following order: (1) Canada/Québec Pension Plan contributions, Employment Insurance premiums, Québec Parental Insurance Plan premiums, federal and provincial income taxes, Northwest Territories and Nunavut payroll taxes Canada/Québec Pension Plan contributions, Québec Parental Insurance Plan premiums, Employment Insurance premiums, Northwest Territories and Nunavut payroll taxes, federal and provincial income taxes Québec Parental Insurance Plan premiums, Employment Insurance premiums, Canada/Québec Pension Plan contributions, Northwest Territories and Nunavut payroll taxes, federal and provincial income taxes Employment Insurance premiums, Québec Parental Insurance Plan premiums, Canada/Québec Pension Plan contributions, federal and provincial income taxes, Northwest Territories and Nunavut payroll taxes 39. The aim of the Canada Health Act is to: (1) ensure that all eligible residents of Canada have access to necessary dental services ensure that all eligible residents of Canada have access to cosmetic services ensure that all eligible residents of Canada have access to necessary hospital and physician services all of the above 11
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