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

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.

Answer 1

False

Question 2

Canada Pension Plan contributions must be deducted from severance pay.

Answer 2

False

Question 3

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

Answer 3

True

Question 4

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Question 21

The following is not an accepted method to calculate the amount of taxes to be with-held.

A) Online tax deduction calculator provided by CRA
B) Use of tax formula tables incorporated into computer software
C) Use of pre-printed tables from CRA
D) Telephone help service provided by CRA
E) Manual Calculations

Question 22

If the TD1 form is not available the employer should assume:

A) The employee is terminated
B) The maximum claim code is applied
C) The employee wants extra taxes taken off
D) Only the basic personal tax exemption is being claimed
E) No tax deductions are required

Question 23

Name the three things a payroll administrator needs to know in order to determine the Canada Pension Plan deduction amount for each employee.

Question 24

Your employee is 27 years old and earned $257.65 of pensionable earnings this pay cycle. He is paid weekly in the Province of British Columbia. Calculate his CPP deduction.

Question 25

Your employee is 27 years old and earned $257.65 of pensionable earnings this pay cycle. He is paid monthly in the Province of British Columbia. Calculate his CPP deduction.

Question 26

Your employee is 71 years old and earned $395.52 of pensionable earnings this pay cycle. He is paid weekly in the Province of British Columbia. Calculate his CPP deduction.

Question 27

Your employee is 16 years old and earned $450.15 of pensionable earnings this pay cycle. He is paid bi-weekly in the Province of Ontario. Calculate his CPP deduction.

Question 28

Your employee is 27 years old and earned $257.65 of insurable earnings this pay cycle. He is paid weekly in the Province of British Columbia. Calculate his EI deduction.

Question 29

Your employee is 27 years old and earned $982.15 of pensionable earnings this pay cycle. He is paid monthly in the Province of British Columbia. Calculate his EI deduction.

Question 30

Your employee is 71 years old and earned $395.52 of pensionable earnings this pay cycle. He is paid weekly in the Province of British Columbia. Calculate his EI deduction.

Question 31

Your employee is 16 years old and earned $450.15 of pensionable earnings this pay cycle. He is paid bi-weekly in the Province of Ontario. Calculate his EI deduction.

Question 32

List the information you need to know in order to calculate the Income Tax deduction for an employee.