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32 Cards in this Set
- Front
- Back
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Objective of the Payroll Function?
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in every company is to pay employees accurately and on time, in compliance with legislative requirments for a full annual payroll cycle.
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What are the terms to identify "payroll"
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the department that administers the payroll, the total # of people employed by an organization, wages and salaries paid out in a year and a list of persons to be paid and the amount due to each
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What is compliance?
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peforming payroll functins according to federal and provincial/territorial legislative and non governmental stakeholders requirments.
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What are the requirments of a payroll praticioner?
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Information-Payroll Compliance, Payroll Processes, Payroll Reporting.
Skills-Technical Skills, Personal Skills, Professional Skills. |
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List the stakeholders of the payroll function?
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Government Stakeholders-Federal, Provincial.
Internal Stakeholders-Employers, Employees, Other Depts. External Stakeholders-Benefit Carriers, Courts, Unions, Pension Providers, Charities, Other. |
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Explain the role of Government stakeholders?
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Federal has the power to make laws for peace, order and good government of Canada.
Provincial/Territorial have power over direct taxation in the provice for natural resources, prisons, charitable institutions, hospital etc |
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What is CPP Rate/$ Max contribution? How much does the employer contribute?
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4.95% and $1910.70. Employer sends employee's amount and Employer must match dollar for dollar.
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What is the difference between a contract OF service and contract FOR service?
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A contract OF service is an arrangment whereby an individual agrees to work on a full/part time basis for an employer for a specified/undeterminate period of time. A contract FOR service is a business relationship where one party agrees to perform certain specific work stipulated in the contract for antoher party.
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Criteria used to determine the type of contract?
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Control-contract OF service.
Ownership of tools Chance of profit and risk of loss Intergration |
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What is the CRA's mission?
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Is to promote compliance with Canada's tax legislation and regulations through Communication, Quality service and Responsible enforcement, thereby contributing to the economic and social well being of Canadians.
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What are statutory deductions and in what order?
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CPP, EI and federal and provincial/territorial income tax.
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What does the CPP plan offer supplementary benefits for?
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Surviving spouse pensions, disability benefits, benefits for orphans and children of diabled contributors and death benefits payable upon the death of a contributor.
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What is EI Rate/$ Max contribution? How much does the employer contribute?
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EI rate is 1.87% and Max is $729.30. Employer must send 1.4times the employees' portion.
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What are non-compliance penalties?
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3% for 3 days late or less.
5% for 4 to 5 days late 7% for 6 to 7 days late. 10% for 8 or more days late. |
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What is the purpose of HRSDC?
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to be repsonsible for providing all Canadians with thte tools they need to thrive and prosper in the workplace and community. Some of the programs include, EI, Labour programs, Youth Employment Strategies, CESG, CSLP.
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Social Development Canada is responsible for what?
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Entilement, determination and payment of benefits under the CPP, Old Age Security, Guaranteed Income Supplement and adminstration of SIN
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What are The Ten Fair Principles?
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Acccountability, Identifying Purpose, Consent, Limiting Collection, Limiting use, disclosure and retention, accuracy, Safeguards, Openness, Individual Access, Challenging Compliance.
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What is express and implied consent?
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Express consent means the employee provides their consent either verbally or in writing. Implied consent means the employee is considered to have consented indirectly.
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Purpose of an ROE?
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To determine individuals qualifications, how much the benefi will be, how long they will collect.
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Who must CPP be withheld from?
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Employees who have reached the age of 18 to under 70.
Employees who are in pensionable employment Employees who are not receiving benefits from Canada or Quebec. |
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Employment that is not subject to CPP?
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Employment by an employer in agriculture, horticulture, fishing, hunting. Unless the worker is paid $250 or more in a year or 25 days has been reached.
Employment of a casual nature other than for the purpose of the employer's usual trade or business. Employment of a person in connection with a circus, fair, parade or carnival. but must be employed for less than 7 days. Employment of a person by a government body as an election worker but must work less than 35hr. |
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Employment that is subject to CPP?
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Income from employment, taxable benefits, fees for service, controlled tips, paid leave, profit sharing
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Give examples of situations where special consideration is need to calculate CPP?
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1. prorating the annual CPP max contribution and basic CPP exemption.(turns 18, turns 70, starts receiving benefits, dies)
2. Employees hired during the year. 3. company mergers and acquisitions. |
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What is T4001?
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Is is the Employers' Guide o Payroll Deductions and Remittances.
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What is a TD1?
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Personal Tax Credits Return.
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What is a TD1-WS?
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This is a worksheet for teh personal tax credit return. It is used to claim partial amounts.
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What is Form T2201?
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Disability Tax Credit Certificate.
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What is Form T2222?
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Northern Residents Deduction.
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What is form T1213?
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Request to reduce tax deductions at Source.
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What is T4032?
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CRA publishes the Payroll Deductions Tables.
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What is T4127?
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Guide Payroll Deductions Formulas for Computer Programs.
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When do you use manual method?
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When report of claim code X to indicate the total claim amount is greater than the forms.
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