Question 1

The Canada Revenue Agency acts as the agent to collect Canada Pension, Employment Insurance and Income Tax contributions for all provinces and territories.

Accepted Answer

False

Question 2

Canada Pension Plan contributions must be deducted from severance pay.

Accepted Answer

Severance pay is not subject to Canada Pension Plan (CPP) contributions because it is not considered pensionable earnings. CPP contributions are deducted from employment income, and severance pay is paid in recognition of service after employment has ended.

Question 3

Pensionable earnings include the value of gifts and awards, including trips.

Accepted Answer

Pensionable earnings include all forms of remuneration, including gifts, awards, and trips.

Question 4

Pensionable earnings include allowances paid to purchase safety shoes required on the job for health and safety.

Accepted Answer

Allowances for safety shoes are typically considered a reimbursement for work-related expenses, not pensionable earnings.

Question 5

What is the amount of the exemption for Canada Pension Plan applied to a semi-monthly pay cycle?
A) $67.30
B) $3500.00
C) $145.83
D) $134.61
E) $66.03

Accepted Answer

The exemption amount for the Canada Pension Plan (CPP) on a semi-monthly pay cycle is calculated based on the basic exemption of $3,500 annually. When this is divided by the 24 pay periods in a year (for semi-monthly pay), it results in approximately $145.83 per pay period.

Question 6

What is the amount of the exemption for Canada Pension Plan applied to a weekly pay cycle?
A) $66.03
B) $67.30
C) $145.83
D) $3500.00
E) $134.61

Accepted Answer

The answer of What is the amount of the exemption...

Question 7

What is the amount of the exemption for Employment Insurance applied to a semi-monthly pay cycle?
A) $0.00
B) $67.30
C) $145.83
D) $134.61
E) $66.03

Accepted Answer

The answer of What is the amount of the exemption...

Question 8

Freida Too is 52 years old and earns $13.50 per hour. This pay schedule she worked 9 hours. She is paid bi-weekly in the Province of Manitoba. How much is her CPP deduction?
A) $121.50
B) $6.01
C) $0.00
D) $2.68
E) $0.65

Accepted Answer

Freida's earnings for this pay period are $13.50 * 9 = $121.50. The CPP deduction is calculated based on annual earnings above the basic exemption amount. Since her earnings for this period are below the basic exemption threshold, her CPP deduction is $0.00.

Question 9

Susan Stark is 17 years old, earns $18 per hour, worked 30 hours in the pay cycle and is paid weekly in the Province of Ontario. How much is her CPP deduction?
A) $26.73
B) $24.82
C) $540.00
D) $23.40
E) $0.00

Accepted Answer

Since Susan Stark is 17 years old, she is under 18 and therefore not required to contribute to the Canada Pension Plan (CPP). CPP contributions are mandatory for all employees over the age of 18 in Canada.

Question 10

Shannon Fiord is 27 years old, earns $18 per hour, worked 30 hours in the pay cycle and is paid weekly in the Province of Ontario. How much is her CPP deduction?
A) $24.82
B) $23.40
C) $0.00
D) $540.00
E) $26.73

Accepted Answer

The answer of Shannon Fiord is 27 years old, earns...

Question 11

Shannon Fiord is 27 years old, earns $18 per hour, worked 30 hours in the pay cycle and is paid weekly in the Province of Ontario. How much must the employer contribute for CPP on her behalf?
A) $23.40
B) $46.80
C) $0.00
D) $540.00
E) $26.73

Accepted Answer

The Canada Pension Plan (CPP) contribution rate for employees in 2023 is 5.7%. Shannon's gross earnings for the pay cycle are $540 (30 hours * $18/hour). The employer's contribution is equal to the employee's contribution, which is calculated as 5.7% of $540 = $30.78. However, there is a basic exemption of $3,500 annually, prorated weekly for pay periods, which is approximately $67.31 per week ($3,500/52 weeks). Since Shannon's weekly earnings are less than this exemption when calculated on a pay-period basis, there would be no CPP contributions required. However, this exemption is applied annually, not per pay period, meaning contributions start once the annual exemption is exceeded. Given the information and typical calculation methods, the correct calculation for the employer's contribution based on the provided earnings would indeed be $30.78, but since none of the options accurately reflect this and considering the misunderstanding in the explanation, the initial choice of A) $23.40 was incorrect based on the correct calculation method for CPP contributions. The correct answer should reflect the calculation based on the provided earnings and the CPP rate, but given the options and the explanation provided, there was a mistake in the initial calculation and explanation process.

Question 12

Freida Too is 52 years old and earns $13.50 per hour. This pay schedule she worked 9 hours. She is paid weekly in the Province of Manitoba. How much is her EI deduction?
A) $3.20
B) $0.00
C) $2.28
D) $121.50
E) $1.02

Accepted Answer

In Canada, Employment Insurance (EI) premiums are calculated as a percentage of insurable earnings. As of my last update, the EI rate for employees in Manitoba is 1.58% for 2021. Freida Too's weekly earnings would be 9 hours * $13.50/hour = $121.50. The EI deduction would be 1.58% of $121.50, which equals approximately $1.92. However, since none of the provided options exactly match this calculation and considering possible rounding or slight changes in rates or calculation methods not accounted for, the closest provided option is C) $2.28, assuming a minor discrepancy in the rate or a typo in the question's details.

Question 13

Freida Too is 52 years old and earns $13.50 per hour. This pay schedule she worked 9 hours. She is paid weekly in the Province of Manitoba. How much must the employer contribute for EI on her behalf?
A) $0.00
B) $121.50
C) $2.28
D) $3.20
E) $1.02

Accepted Answer

The answer of Freida Too is 52 years old and...

Question 14

John Legglet is 42 years old, earns $4000 per week and is paid semi-monthly in the Province of Ontario. How much is his CPP deduction?
A) $194.67
B) $198.00
C) $388.78
D) $392.67
E) $396.00

Accepted Answer

The answer of John Legglet is 42 years old, earns...

Question 15

If the Canada Pension Plan deduction for an employee is $57.45 for the pay cycle, how much must the employer pay for the same period?
A) $80.43
B) $28.73
C) $57.45
D) $0.00
E) $114.90

Accepted Answer

Employers must match the Canada Pension Plan (CPP) contributions made by their employees, so if an employee's deduction is $57.45 for the pay cycle, the employer must also pay $57.45 for the same period.

Question 16

If the Employment Insurance deduction for an employee is $57.45 for the pay cycle, how much must the employer pay for the same period?
A) $114.90
B) $0.00
C) $28.73
D) $80.43
E) $57.45

Accepted Answer

The answer of If the Employment Insurance deduction for an...

Question 17

Sally Shy is 72 years old and currently collecting Canada Pension Plan benefits. She works part time and earns $13.50 per hour. This pay schedule she worked 19 hours. She is paid bi-weekly in the Province of Alberta. How much is her EI deduction?
A) $6.75
B) $256.50
C) $4.82
D) $0.00
E) $12.70

Accepted Answer

The answer of Sally Shy is 72 years old and...

Question 18

Sally Shy is 72 years old and currently collecting Canada Pension Plan benefits. She works part time and earns $13.50 per hour. This pay schedule she worked 19 hours. She is paid bi-weekly in the Province of Alberta. How much is her CPP deduction?
A) $256.50
B) $12.70
C) $6.03
D) $0.00
E) $9.37

Accepted Answer

Canada Pension Plan (CPP) contributions are not required for individuals who are 70 years old or older, regardless of their employment status or income. Since Sally Shy is 72 years old, she would not have any CPP deductions from her pay.

Question 19

Freida Too is 52 years old and earns $13.50 per hour. This pay schedule she worked 19 hours. She is paid bi-weekly in the Province of Manitoba. How much is her CPP deduction?
A) $256.50
B) $12.70
C) $6.03
D) $0.00
E) $9.37

Accepted Answer

In Canada, the Canada Pension Plan (CPP) contribution rate for employees in 2023 is 5.70% of the gross earnings, but there is a basic exemption of $3,500 annually. Since Freida is paid bi-weekly, her gross earnings for the period are $13.50/hour * 19 hours = $256.50. However, to calculate the CPP deduction accurately, we need to consider the pay period and the basic exemption. Given the information does not specify the total annual earnings or whether the basic exemption has been exceeded, a precise calculation is challenging. However, assuming the question intends for a straightforward application of the CPP rate to the earnings for this pay period without considering the annual exemption (which is typically accounted for in payroll systems over the course of the year), the CPP deduction would be 5.70% of $256.50, which is approximately $14.62. Since this option is not available and considering the need for a correct answer, it seems there might be a misunderstanding in the application of the CPP calculation or an error in the provided options. Therefore, based on the provided options and the typical approach to CPP deductions, none seem to directly apply under standard calculations. Please review the context or details provided for a potential clarification or correction.

Question 20

The employee claim code is determined by:
A) Employee choice
B) Job tenure
C) The total dollar value of claimed exemptions on the TD1
D) The basic personal amount on the TD1
E) Lottery

Accepted Answer

The employee claim code is determined by the total dollar value of claimed exemptions on the TD1 form, which is used in Canada for tax purposes.

Quiz 4: Canadian Payroll Deductions: CPP and EI Contributions, Exemptions, and Deductions

The Canada Revenue Agency acts as the agent to collect Canada Pension, Employment Insurance and Income Tax contributions for all provinces and territories.

Canada Pension Plan contributions must be deducted from severance pay.

Pensionable earnings include the value of gifts and awards, including trips.

Pensionable earnings include allowances paid to purchase safety shoes required on the job for health and safety.

What is the amount of the exemption for Canada Pension Plan applied to a semi-monthly pay cycle?

What is the amount of the exemption for Canada Pension Plan applied to a weekly pay cycle?

What is the amount of the exemption for Employment Insurance applied to a semi-monthly pay cycle?

Freida Too is 52 years old and earns $13.50 per hour. This pay schedule she worked 9 hours. She is paid bi-weekly in the Province of Manitoba. How much is her CPP deduction?

Susan Stark is 17 years old, earns $18 per hour, worked 30 hours in the pay cycle and is paid weekly in the Province of Ontario. How much is her CPP deduction?

Shannon Fiord is 27 years old, earns $18 per hour, worked 30 hours in the pay cycle and is paid weekly in the Province of Ontario. How much is her CPP deduction?

Shannon Fiord is 27 years old, earns $18 per hour, worked 30 hours in the pay cycle and is paid weekly in the Province of Ontario. How much must the employer contribute for CPP on her behalf?

Freida Too is 52 years old and earns $13.50 per hour. This pay schedule she worked 9 hours. She is paid weekly in the Province of Manitoba. How much is her EI deduction?

Freida Too is 52 years old and earns $13.50 per hour. This pay schedule she worked 9 hours. She is paid weekly in the Province of Manitoba. How much must the employer contribute for EI on her behalf?

John Legglet is 42 years old, earns $4000 per week and is paid semi-monthly in the Province of Ontario. How much is his CPP deduction?

If the Canada Pension Plan deduction for an employee is $57.45 for the pay cycle, how much must the employer pay for the same period?

If the Employment Insurance deduction for an employee is $57.45 for the pay cycle, how much must the employer pay for the same period?

Sally Shy is 72 years old and currently collecting Canada Pension Plan benefits. She works part time and earns $13.50 per hour. This pay schedule she worked 19 hours. She is paid bi-weekly in the Province of Alberta. How much is her EI deduction?

Sally Shy is 72 years old and currently collecting Canada Pension Plan benefits. She works part time and earns $13.50 per hour. This pay schedule she worked 19 hours. She is paid bi-weekly in the Province of Alberta. How much is her CPP deduction?

Freida Too is 52 years old and earns $13.50 per hour. This pay schedule she worked 19 hours. She is paid bi-weekly in the Province of Manitoba. How much is her CPP deduction?

The employee claim code is determined by: