Deck 7: Employer Obligations and Requirements: A Comprehensive Guide to Statutory Deductions and Registrations in Canada

Question 1

In addition to with-holding and remitting statutory deductions to the Canada Revenue Agency, employers must also contribute to these programs.

Answer 1

True

Question 2

In addition to registering with the federal government, a business must register in each province or territory where they have an operation.

Answer 2

True

Question 3

If an employee works for more than one employer in the year and pays more than the annual maximum for CPP as a result, they will receive a refund on their annual tax return.

Answer 3

True

Question 4

If an employee works for more than one employer in the year and pays more than the annual maximum for CPP as a result, the employer will receive a refund on their annual tax return.

Question 5

If an employer forgets to deduct Canada Pension Plan contributions from employee payments, the employee will be forced to make up the difference when they file their annual personal tax return.

Question 6

Every province administers their own pension fund.

Question 7

If an employee works for more than one employer in the year and pays more than the annual maximum for EI as a result, they will receive a refund on their annual tax return.

Question 8

If an employee works for more than one employer in the year and pays more than the annual maximum for EI as a result, the employer will receive a refund on their annual tax return.

Question 9

If an employer forgets to deduct Employment Insurance contributions from employee payments, the employer will still have to remit both the employee and employer contributions at year end filing.

Question 10

Quebec administers a separate program for both Employment Insurance and Pension that requires remittances be made direct to the Province of Quebec rather than remitting to the federal Canada Revenue Agency.

Question 11

All individuals who receive compensation from a business must be registered and covered by the provincial Workers' Compensation program, including partners and executive officers.

Question 12

Industry rates for Workers' Compensation premiums are determined based on the historical rate of injury claims from the industry and may be higher depending on incidence of past claims.

Question 13

Industry rates for Workers' Compensation premiums are likely to be lower for workers in dangerous jobs such as logging than they are for office work.

Question 14

If an employer with-holds a total of $35,000 annually from employee payments for Canada Pension Plan contributions, the total required remittance amount to CRA for the year will be:

A) $84,000
B) $49,000
C) $35,000
D) $0
E) $70,000

Question 15

The fully loaded cost to an employer of hiring staff is equal to the employee gross wages plus approximately --------------%.

A) 15%
B) 10%
C) 25%
D) 5%
E) 20%

Question 16

Employer contributions for Canada Pension Plan equal -----------% of the employee contribution amount.

A) 4.95%
B) 100%
C) 140%
D) 1.88%
E) 50%

Question 17

Employer premiums for Employment Insurance equal ----------% of the employee contribution amount.

A) 100%
B) 50%
C) 4.95%
D) 1.88%
E) 140%

Question 18

Employers must register with the Canada Revenue Agency to receive a ----------------digit federal Business Number

A) 3
B) 11
C) 9
D) 4
E) 7

Question 19

Each province and territory provides the administration of Workers' Compensation including all but the following:

A) Bonuses for compliance
B) Programs to facilitate return to work
C) Rates and classifications for application of rates
D) Benefit amounts for workers
E) Registration processes

Question 20

A payroll sub-account with the Canada Revenue Agency begins with:

A) 9
B) RP
C) BN
D) ID
E) 0

Question 21

The following province does not assess an Employer Health Tax:

A) Newfoundland
B) Ontario
C) British Columbia
D) Manitoba
E) Quebec

Question 22

The actual premium for an employer must be submitted to the Worker Safety Insurance Board by:

A) February 28 of the following year
B) December 31 of the current year
C) December 31 of the following year
D) March 30 of the following year
E) March 15 of the following year

Question 23

The actual premium for the Ontario Employer Health tax must be submitted by:

A) December 31 of the current year
B) March 15 of the following year
C) February 28 of the following year
D) March 30 of the following year
E) December 31 of the following year

Question 24

When is an employer required to register a payroll sub-account under the Business Number?

A) After the first year of payroll is complete.
B) Prior to terminating an employee.
C) After the first sale is made.
D) Prior to a sale being made.
E) Prior to the first remittance of statutory deductions.

Question 25

In Ontario the administration of the worker insurance program is under the management of the:

A) Worker Safety and Insurance Board
B) Worker Compensation Board
C) Services Canada
D) Health Canada
E) Canada Revenue Agency

Question 26

Under which scenario could permission be granted to the employer to reduce the amount of Employment Insurance premiums due to the Canada Revenue Agency?

A) The employer has a short term disability plan that could reduce potential claims
B) The employer has a resume service to former employees that could reduce potential claims
C) The employer has not laid off any employees in the past 10 years
D) The employer has limited funds available due to being new in the industry
E) The employer has less than 10 employees

Question 27

A federal Business Number with the Canada Revenue Agency is not required for the following:

A) To advertise products online.
B) To register for the Harmonized Sales Tax.
C) To register for the Goods and Services tax.
D) To file tax returns.
E) To import or export goods.

Question 28

Employment Insurance is administered by:

A) Unemployment Insurance Board
B) Employment Insurance Board
C) Workers Compensation and Insurance Board
D) Canada Revenue Agency
E) Service Canada

Question 29

Name and describe the principles regarding insurance for injured workers common in all jurisdictions as recommended by Sir William Ralph Meredith.

Question 30

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

Question 31

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