Question 1

The cost of payroll is simply the total wages paid to employees.

Accepted Answer

The cost of payroll includes not only the total wages paid to employees but also encompasses other expenses such as employer-paid taxes (e.g., Social Security, Medicare), benefits (e.g., health insurance, retirement contributions), and sometimes costs related to payroll processing.

Question 2

Prior to 2019 the following province did not assess an Employer Health Tax:
A) British Columbia
B) Ontario
C) Manitoba
D) Quebec
E) Newfoundland

Accepted Answer

British Columbia did not assess an Employer Health Tax prior to 2019; it was introduced in that year to replace the revenue from the Medical Services Plan premiums.

Question 3

Calculate the Workers' Compensation premium owing for an employer in Ontario with assessable earnings equal to $295,000 annually in the agricultural Industry rate category (assume no employees exceed the maximum assessable earnings for the year).

Accepted Answer

Agriculture is a rate category with a premium charge of $2.88 per $100 of assessable earnings.
 Total premium owing = $295,000/100 *2.88 = $8,496

Question 4

Employees in provinces other than Quebec must contribute additional premiums on insurable earnings over and above the Employment Insurance rate of 1.58% for their provincial Parental Insurance Plans.

Accepted Answer

Only employees in Quebec are required to contribute to the Quebec Parental Insurance Plan (QPIP) at a different rate, while employees in other provinces contribute to the Employment Insurance (EI) program at the standard rate without additional premiums for parental benefits.

Question 5

The rate of 1.58% for Employment Insurance Premiums will never change.

Accepted Answer

The rate for Employment Insurance Premiums can change based on decisions made by the government or relevant governing bodies, reflecting economic conditions, policy changes, or adjustments to the insurance program's needs.

Question 6

Employees in Quebec contribute to the Quebec Pension Plan at a rate of ____.
A) 5.70%
B) 4.95%
C) 0.559%
D) 1.54%
E) 1.88%

Accepted Answer

Employees in Quebec contribute to the Quebec Pension Plan (QPP) at a rate of 5.70%.

Question 7

Employees in Quebec contribute Employment Insurance premiums at a rate of ____.
A) 5.25%
B) 4.95%
C) 0.559%
D) 1.20%
E) 1.88%

Accepted Answer

The answer of Employees in Quebec contribute Employment Insurance premiums...

Question 8

Employees in Quebec must also contribute an additional premium of ____ on insurable earnings to the Quebec Parental Insurance Plan.
A) 5.25%
B) 4.95%
C) 0.494%
D) 1.54%
E) 1.88%

Accepted Answer

Employees in Quebec contribute an additional premium of 0.494% on insurable earnings to the Quebec Parental Insurance Plan.

Question 9

An employee earns $55,000 per year and is paid on a semi-monthly pay schedule. The employee enjoys the benefit of a company paid cell phone for personal use (cost is $150 per month) and receives 6% vacation pay on each payment. This pay cycle included 15 hours of approved overtime worked over the normal 40 hour work week and a reimbursement for travel expenses in the amount of $434.20. The employee contributes 5% of their regular wages to a Registered Retirement Savings Plan each pay cycle.
-Calculate the Gross Earnings.

Accepted Answer