Question 1

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

Accepted Answer

Employers in Canada are required to contribute to certain statutory programs such as the Canada Pension Plan (CPP) and Employment Insurance (EI), in addition to withholding and remitting employee deductions for these programs to the Canada Revenue Agency (CRA).

Question 2

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

Accepted Answer

In Canada, businesses must register with both the federal government and in each province or territory where they operate, as business registration requirements vary by location.

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.

Accepted Answer

If an employee overpays into the Canada Pension Plan (CPP) because they worked for more than one employer and exceeded the maximum contribution for the year, they can receive a refund for the overpayment when they file their annual tax return.

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.

Accepted Answer

The employee, not the employer, may receive a refund for the overpayment of CPP contributions when they file their personal income 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.

Accepted Answer

The responsibility to correct the mistake and ensure the proper CPP contributions are made falls on the employer, not the employee. The employer must rectify the error, potentially including paying any missed contributions on behalf of the employee.

Question 6

Every province administers their own pension fund.

Accepted Answer

In Canada, the Canada Pension Plan (CPP) is administered at the federal level, not by individual provinces. However, Quebec administers its own program, the Quebec Pension Plan (QPP).

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.

Accepted Answer

If an employee has paid more into Employment Insurance (EI) than the annual maximum due to working for multiple employers, they are eligible for a refund when filing 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.

Accepted Answer

The refund for overpayment of Employment Insurance (EI) premiums, if an employee works for more than one employer and overpays as a result, goes to the employee, not the employer, when they file their personal income 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.

Accepted Answer

If an employer forgets to deduct Employment Insurance (EI) contributions from an employee's payments, the employer is still responsible for remitting both the employee's and the employer's share of EI contributions to the government at year-end filing. This ensures compliance with employment and tax laws.

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.

Accepted Answer

Quebec has its own provincial pension plan and employment insurance program, separate from the federal programs.

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.

Accepted Answer

Not all individuals who receive compensation from a business are required to be registered and covered by the provincial Workers' Compensation program. Coverage requirements vary by province and the structure of the business, and in many cases, partners and executive officers can opt out or may not be automatically covered.

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.

Accepted Answer

Workers' Compensation premiums are indeed determined based on the historical rate of injury claims within an industry, with higher rates for industries or businesses that have a higher incidence of past claims. This is because insurers use past claim data to assess the risk of future 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.

Accepted Answer

Workers' Compensation premiums are typically higher for more dangerous jobs like logging due to the increased risk of injury, compared to lower-risk jobs such as 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:

Accepted Answer

For Canada Pension Plan (CPP) contributions, employers must match the amount withheld from employee payments. Therefore, if $35,000 is withheld from employees, the employer must also contribute $35,000, making the total remittance $70,000.

Question 15

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

Accepted Answer

The answer of The fully loaded cost to an employer...

Question 16

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

Accepted Answer

Employer contributions for Canada Pension Plan (CPP) are equal to 100% of the employee contribution amount, meaning employers match the contributions made by employees dollar for dollar.

Question 17

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

Accepted Answer

Employer premiums for Employment Insurance in Canada are 1.4 times the employee contribution amount, which equals 140%.

Question 18

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

Accepted Answer

The federal Business Number in Canada is a 9-digit number issued by the Canada Revenue Agency.

Question 19

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

Accepted Answer

Bonuses for compliance are not typically provided by Workers' Compensation boards. Their focus is more on ensuring safety, providing support for injured workers, and facilitating their return to work, rather than offering financial incentives for compliance.

Question 20

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

Accepted Answer

A payroll sub-account with the Canada Revenue Agency begins with "RP," which stands for "Remittance Payroll."

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