Deck 1: Employment and Payroll Regulations

Question 1

Failing to deduct statutory withholdings from employee payments can result in fines, penalties and interest charges.

Answer 1

True

Question 2

Employers who do not deduct statutory withholdings from employee payments have nothing to worry about.

Answer 2

False

Question 3

Employers who fail to deduct proper withholdings from employee payments may be forced to take on the cost of these missed deductions.

Answer 3

True

Question 4

Payments for employees are processed through accounts payable and do not require any statutory payroll deductions.

Question 5

Payments for self-employed workers are processed through accounts payable and do not require any statutory payroll deductions.

Question 6

Employees with a Social Insurance Number beginning with a '9' are free to work in Canada without restrictions.

Question 7

Most payroll software is capable of checking the validity of Social Insurance Numbers.

Question 8

Employers are permitted to use a Social Insurance Number as an employee ID for an internal social club.

Question 9

The province of employment determines if you are regulated by the Canada Labour Code.

Question 10

If the worker has the option to sub-contract their work to others for profit, the worker is likely:

A) An employee
B) Self-employed

Question 11

If the worker is supervised while on the job and required to follow a schedule of hours determined by the supervisor, the worker is likely:

A) An employee
B) Self-employed

Question 12

If the worker is provided with all of the tools required to do the job and are not responsible for maintenance and insurance of these tools, the worker is likely:

A) An employee
B) Self-employed

Question 13

If the worker finishes the job quickly and is able to earn additional profit as a result, the worker is likely:

A) An employee
B) Self-employed

Question 14

If a worker is hired to fix one toilet in a large office building and is required to bring his own tools, can dictate the time the job is done and has the ability to hire an assistant to do the work for him, the worker is likely:

A) An employee
B) Self-employed

Question 15

If a worker is hired by a plumbing company to repair toilets in large office buildings and is required to work a scheduled shift, use company tools and do the work himself, the worker is likely:

A) An employee
B) Self-employed

Question 16

Employees must request the Social Insurance Number within ------------- number of days of an employee starting employment.

A) 1
B) 2
C) 3
D) 4
E) 5

Question 17

How many digits are in a valid Social Insurance Number?

A) 6
B) 7
C) 8
D) 9
E) 10

Question 18

If an employer is unsure which Provincial Employment or Labour Standards apply they should:

A) Contact the Ministry of Labour
B) Refer to the CRA publication RC4110
C) Use the home province of the employee
D) Use the home address of the CEO
E) Contact the Canada Revenue Agency

Question 19

If in doubt of whether or not the worker is an employee or self-employed, the safest choice is to:

A) Ask the worker to determine which scenario they would prefer
B) Treat relationship as employment and withhold deductions
C) Pay through Accounts Payable with no deductions
D) Pay as a lump sum with no deductions
E) Flip a coin and document the results

Question 20

To determine whether a worker is an employee or is self-employed the CRA looks at:

A) The substance of the relationship between the parties
B) The payment amount agreed to between the parties
C) The duration of the friendship between the parties
D) The formal agreement between the parties
E) The familial relationship between the parties

Question 21

Who carries the responsibility to apply for an individual's Social Insurance Number?

A) The employer
B) The payroll administrator
C) CRA
D) The parents of the individual
E) The individual

Question 22

Employees in this industry are generally not considered to be federally regulated.

A) Automotive
B) Air Transportation
C) Banks
D) Uranium Mining
E) Radio Broadcasting

Question 23

List 3 reasons why the efficient and effective administration of the process is very important to managers.

Question 24

Name and describe the 3 steps involved to determine if a worker is an employee or an independent contractor in Quebec.

Question 25

Name 3 stakeholders in the payroll administrative process and explain their interest in the outcomes.