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Payroll test 2 PRACTICE QUESTIONS, Exams of Business Economics

London Institute of Business and Technology (LIBT)Business Economics

Payroll test 2 PRACTICE QUESTIONS

Typology: Exams

2024/2025

Available from 05/21/2025

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Payroll test 2
T/F In addition to registering with the federal government, a business must register in each
province or territory where they have an operation. correct answer True
T/F 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.
correct answer True
T/F 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. correct answer False
T/F 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. correct answer False
T/F All individuals who receive compensation from a business must be registered and covered
by the provincial Workers' Compensation program, including partners and executive officers.
correct answer False
T/F 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. correct answer True
T/F Employers may register online for a business number and RP sub-account. correct answer
True
If an employer withholds 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:
correct answer 70,000
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Payroll test 2

T/F In addition to registering with the federal government, a business must register in each province or territory where they have an operation. correct answer True T/F 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. correct answer True T/F 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. correct answer False T/F 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. correct answer False T/F All individuals who receive compensation from a business must be registered and covered by the provincial Workers' Compensation program, including partners and executive officers. correct answer False T/F 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. correct answer True T/F Employers may register online for a business number and RP sub-account. correct answer True If an employer withholds 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: correct answer 70,

Employer contributions for Canada Pension Plan equal ___ % of the employee contribution amount. correct answer 100% Employer premiums for Employment Insurance equal ___ % of the employee contribution amount. correct answer 140% A payroll sub-account with the Canada Revenue Agency begins with: correct answer RP The actual premium for an employer with payroll less than $1,200,000 for the Ontario Employer Health tax must be submitted by: correct answer March 15 of the following year The actual premium for the Ontario Employer Health tax must be submitted by: correct answer March 15 of the following year A federal Business Number with the Canada Revenue Agency is not required for the following: correct answer To advertise products online. Employment Insurance is administered by: correct answer Service Canada The 2024 maximum employer cost of CPP (not including CPP2) contributions per employee is: correct answer $3,867. The 2024 maximum employer cost of E.I. premium per employee is: correct answer $1,468. Payroll transactions are first recorded in a: correct answer Register used to "show detailed information by employee paid" and "have summary totals by type of earning and deduction" correct answer Payroll registers:

The advantages of computerized payroll systems do not include: correct answer Minimizing management responsibility An example of a non-recurring payment to employees that would need to be prepared and approved before processing payroll is: correct answer Retroactive wage adjustments What factors should an employer consider when determining their needs for a new computerized payroll system? correct answer The number of employees currently and in the foreseeable future. The complexity of payroll related to; Number of pay cycles. Types of earnings Deductions allowed. Number of provinces with employees. The capability of the payroll administrator. The degree of integration desired to other company systems, if any. The in-house support capability for the computer system. The extent to which privacy is a concern. T/F In addition to calculating earnings, deductions and employer obligations arising from payroll, payroll administrators must ensure that all liabilities resulting from the payroll process are paid on time. correct answer True T/F Newfoundland and Labrador require monthly Health Tax payments within 20 calendar days of the end of the month, regardless of the size of the annual payroll. correct answer True T/F Late payment to employees can lead to negative morale. correct answer True T/F The schedule of payment to courts for garnishment orders is set by the employer. correct answer False

T/F Normally payments to courts for garnishment orders will be required on the same date as payment to employee's pay. correct answer True T/F The CRA will only accept payment by electronic funds transfer. correct answer False How can you determine the due dates for court ordered deductions? correct answer Review the terms of the order Missing a scheduled pay date: correct answer Can result in fines and grievance costs All payroll remittance payments made to the Canada Revenue Agency must have ___ attached. correct answer The employer's payroll business number If your average monthly remittance in the 2nd preceding year was $2,500 your remittance for amounts deducted on the January 14th pay is due on: correct answer April 15 If your average monthly remittance in the 2nd preceding year was $24,500 your remittance for amounts deducted on the January 14th pay is due on: correct answer February 15 If your average monthly remittance in the 2nd preceding year was $45,720 your remittance for amounts deducted on the January 14th pay is due on: correct answer January 25 If your average monthly remittance in the 2nd preceding year was $103,117 your remittance for amounts deducted on the January 14th pay is due on: correct answer The 3rd business day following January 14 If your average monthly remittance in the 2nd preceding year was $45,720 you must remit amounts owed to the Canada Revenue Agency correct answer Semi-monthly (Accelerated 1)

When must the T4 slip be submitted to the Canada Revenue Agency by? correct answer By the last day of February of the subsequent year What do you do if you do not have the SIN when completing a T4? correct answer Enter nine 0's If an employee worked in more than one province or territory during the year the employer should: correct answer Create a separate T4 slip for the earnings and deductions that apply to each province or territoryCorrect What are the possible penalties for failing to file T4s and the T4 summary by the due date? correct answer Monetary penalties What is a T4 Summary? Who completes it? When must it be filed? Short Answer correct answer A T4 summary is a form required to be sent to the Canada Revenue Agency by the last day of February. It provides a summary of the amounts printed on all the individual T4s and also provides a summary of the amounts remitted to the CRA. Any amount due or over-remitted will be noted on the summary and if an amount is due, payment must accompany the form.