Trivia Questions On Payroll Compliance And Canada Labour Code! Quiz
What we have here are some trivia questions on payroll compliance and Canada Labor code. It is important for businesses to take care of their human resources, and labor codes are put in place to protect employee’s lives. As a human resource manager, how well do you understand the labor codes and the importance of payroll compliance? Do take the quiz and get to find out!
Questions and Answers
- 1.
What is the possible result of payroll non-compliance?
- A.
Where legislation requires employer compliance, there are financial penalties or the possibility of legal action.
- B.
Fines, penalties and interest charges
- C.
Visit from a government officer
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
Non-compliance with payroll regulations can lead to various consequences. Financial penalties can be imposed on the employer for not adhering to the legislation. Legal action can also be taken against the employer for non-compliance. Additionally, the company may face fines, penalties, and interest charges for not following the payroll regulations. Furthermore, there is a possibility of a visit from a government officer to assess the situation and ensure compliance. Therefore, all of the options mentioned (fines, penalties and interest charges, visit from a government officer) can be possible results of payroll non-compliance.Rate this question:
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- 2.
An organization is required to comply with:
- A.
Provincial/territorial and federal government legislation
- B.
An organization must be compliant with legislation at both the federal and provincial/territorial level.
- C.
Provincial/territorial
- D.
Federal government legislation
Correct Answer
A. Provincial/territorial and federal government legislationExplanation
An organization is required to comply with both provincial/territorial and federal government legislation. This means that they must adhere to laws and regulations set by both levels of government. Failure to comply with either provincial/territorial or federal legislation can result in legal consequences for the organization.Rate this question:
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- 3.
An objective of the payroll function is to:
- A.
Pay employees accurately
- B.
Provide pay stubs
- C.
Provide direct deposit
- D.
Provide cheques
Correct Answer
A. Pay employees accuratelyExplanation
The objective of the payroll function is to pay employees accurately. This means ensuring that employees receive the correct amount of compensation for their work, including wages, salaries, bonuses, and any other forms of payment. Accuracy in payroll is crucial to maintain employee satisfaction, comply with legal requirements, and uphold the organization's financial integrity. Providing pay stubs, direct deposit, or cheques are methods or tools used to achieve the objective of paying employees accurately, but they are not the primary objective themselves.Rate this question:
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- 4.
Where an employee-employer relationship exists, the employer must withhold:
- A.
Canada Pension Plan contributions
- B.
Employment Insurance premiums
- C.
Income tax
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
In an employee-employer relationship, the employer is responsible for withholding certain deductions from the employee's wages. This includes Canada Pension Plan contributions, Employment Insurance premiums, and income tax. These deductions are mandatory and required by law. Therefore, the correct answer is all of the above.Rate this question:
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- 5.
Pension providers and charities are considered to be what type of stakeholder of the payroll department?
- A.
External
- B.
Internal
- C.
Union
- D.
All above
Correct Answer
A. ExternalExplanation
Pension providers and charities are considered external stakeholders of the payroll department because they are not directly involved in the day-to-day operations of the department. They have an interest in the department's activities and outcomes, but they are not part of the internal structure of the organization. Instead, they are external entities that interact with the payroll department to provide or receive services related to pensions or charitable contributions.Rate this question:
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- 6.
An employee reports to work at an automotive dealership located in Alberta. What jurisdiction would the employee fall under for employment standards purposes?
- A.
Alberta
- B.
Federal
- C.
National
- D.
None of the above
Correct Answer
A. AlbertaExplanation
The employee would fall under the jurisdiction of Alberta for employment standards purposes because they are reporting to work at an automotive dealership located in Alberta. Each province in Canada has its own set of employment standards legislation, and in this case, since the workplace is in Alberta, the employee would be subject to the employment standards laws and regulations of that province.Rate this question:
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- 7.
The process or function of paying employees in exchange for the services they perform is referred to as:
- A.
Payroll
- B.
contract for service
- C.
Government legislation
- D.
Canada Labour Code
Correct Answer
A. PayrollExplanation
The process or function of paying employees in exchange for the services they perform is referred to as payroll. This involves calculating and disbursing wages or salaries to employees, deducting taxes and other withholdings, and keeping records of all financial transactions related to employee compensation.Rate this question:
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- 8.
An objective of the payroll function is to:
- A.
Industry
- B.
Contract
- C.
Service
- D.
Pay employees accurately
Correct Answer
D. Pay employees accuratelyExplanation
The objective of the payroll function is to ensure that employees are paid accurately. This includes calculating and processing wages, salaries, and deductions, as well as ensuring that the correct amount is paid to each employee on time. Payroll also involves keeping accurate records of employee hours worked and maintaining compliance with tax regulations and labor laws. By paying employees accurately, the payroll function helps to maintain employee satisfaction and trust, and ensures that the organization remains in compliance with legal requirements.Rate this question:
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- 9.
As a payroll practitioner you must:
- A.
Ensure the organization is compliant with all stakeholder requirements
- B.
Pay employees accurately
- C.
Pay employees on time
- D.
Ensure all of the above
Correct Answer
D. Ensure all of the aboveExplanation
The correct answer is "ensure all of the above". As a payroll practitioner, it is essential to ensure that the organization is compliant with all stakeholder requirements, including legal and regulatory obligations. Additionally, it is important to pay employees accurately, ensuring that they receive the correct amount of compensation for their work. Timely payment is also crucial to maintain employee satisfaction and meet contractual obligations. Therefore, the payroll practitioner should ensure all of these requirements are met.Rate this question:
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- 10.
Effective payroll practitioners should be:
- A.
Conscientious
- B.
Discreet
- C.
Trustworthy
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
Effective payroll practitioners should possess all of the mentioned qualities - conscientiousness, discretion, and trustworthiness. Being conscientious means being diligent and thorough in their work, ensuring accuracy and attention to detail in payroll processing. Discretion is important as payroll practitioners handle sensitive employee information and must maintain confidentiality. Trustworthiness is crucial as they are responsible for handling payroll funds and ensuring that employees are paid accurately and on time. Therefore, all these qualities are essential for effective payroll practitioners.Rate this question:
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- 11.
All provinces and territories have exclusive authority over the laws regarding:
- A.
Civil rights
- B.
Property rights
- C.
Employment standards
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
All provinces and territories in Canada have exclusive authority over the laws regarding civil rights, property rights, and employment standards. This means that each province and territory can establish and enforce its own laws in these areas, without interference from the federal government. Therefore, the correct answer is "all of the above" because all of these areas fall under the jurisdiction of the provinces and territories.Rate this question:
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- 12.
A payroll practitioner's knowledge consists of:
- A.
Information on payroll compliance legislation
- B.
Information on payroll processes and payroll reporting
- C.
Technical, professional and personal skills
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
A payroll practitioner's knowledge consists of information on payroll compliance legislation, information on payroll processes and payroll reporting, as well as technical, professional, and personal skills. This means that a payroll practitioner needs to have a comprehensive understanding of payroll laws and regulations, be familiar with the various processes and reporting requirements involved in payroll management, and possess the necessary technical skills to effectively carry out their duties. Additionally, they should also possess professional and personal skills such as attention to detail, organization, communication, and problem-solving abilities to excel in their role. Therefore, the correct answer is "all of the above."Rate this question:
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- 13.
In a contract of service (employee-employer relationship), the employer would generally:
- A.
Assume the risk of financial loss alone
- B.
Reimburse employees for expenses incurred in the performance of their job
- C.
Supply the tools and equipment required
- D.
Meet all of the above factors
Correct Answer
D. Meet all of the above factorsExplanation
In a contract of service (employee-employer relationship), the employer would generally meet all of the above factors. This means that the employer would assume the risk of financial loss alone, reimburse employees for expenses incurred in the performance of their job, and supply the tools and equipment required. This indicates that the employer takes responsibility for the financial aspects, provides necessary resources, and supports the employees in their job performance.Rate this question:
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- 14.
An organization that is not classified as a federal employer under the Canada Labour Code and has divisions in all provinces and territories of Canada must comply with the employment labour standards legislated by the:
- A.
Province/territory in which each individual employee works
- B.
Federal jurisdiction
- C.
Province/territory in which the head office is situated
- D.
Province/territory in which the payroll is processed
Correct Answer
A. Province/territory in which each individual employee worksExplanation
An organization that is not classified as a federal employer under the Canada Labour Code and has divisions in all provinces and territories of Canada must comply with the employment labour standards legislated by the province/territory in which each individual employee works. This is because employment labour standards are determined by the jurisdiction in which the employee is located and working. Therefore, the organization must adhere to the specific regulations and standards set by each province or territory for their respective employees.Rate this question:
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- 15.
Payroll practitioners must be compliant with:
- A.
Federal and provincial/territorial legislation
- B.
Federal
- C.
provincial/territorial legislation
- D.
Non
Correct Answer
A. Federal and provincial/territorial legislationExplanation
Payroll practitioners are responsible for managing and processing employee salaries and benefits. In order to ensure compliance with the law, they must adhere to both federal and provincial/territorial legislation. This includes following regulations related to minimum wage, overtime pay, tax withholdings, employment standards, and other relevant laws. By being knowledgeable and compliant with these laws, payroll practitioners can ensure that employees are paid accurately and in accordance with legal requirements.Rate this question:
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- 16.
The Canada Labour Code consists of:
- A.
Employment Standards
- B.
Industrial Relations
- C.
Occupational Health and Safety
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
The Canada Labour Code is a comprehensive legislation that governs various aspects of labor relations in Canada. It includes provisions related to employment standards, industrial relations, and occupational health and safety. Employment standards cover areas such as minimum wage, hours of work, and leave entitlements. Industrial relations deal with the rights and responsibilities of employers and employees, including collective bargaining and dispute resolution. Occupational health and safety regulations aim to ensure a safe and healthy work environment for employees. Therefore, the correct answer is "All of the above" as all these areas are covered under the Canada Labour Code.Rate this question:
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- 17.
In which of the following places of employment would the employees fall under federal jurisdiction?
- A.
Canada Post Corporation
- B.
Federal
- C.
Shipping
- D.
Union
Correct Answer
A. Canada Post CorporationExplanation
Employees of Canada Post Corporation would fall under federal jurisdiction because Canada Post is a federal crown corporation. As a federal entity, it is subject to federal laws and regulations, including those related to employment. This means that the employees of Canada Post would be governed by federal employment standards, labor laws, and other federal regulations.Rate this question:
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- 18.
A request for a ruling as to the status of a worker under the Canada Pension Plan Act or the Employment Insurance Act might be required in which of the following situations?
- A.
To determine if a worker's employment is insurable
- B.
To determine if a worker's employment is pensionable
- C.
To determine if an individual is an employee or a contractor
- D.
In all of the above situations
Correct Answer
D. In all of the above situationsExplanation
In all of the above situations, a request for a ruling as to the status of a worker under the Canada Pension Plan Act or the Employment Insurance Act might be required. This is because all three situations involve determining the status or classification of a worker, whether it is to determine if their employment is insurable, pensionable, or if they are an employee or a contractor. Therefore, in each of these scenarios, it would be necessary to request a ruling to clarify the worker's status under these acts.Rate this question:
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- 19.
Canada Pension Plan rates generally change on the first of January of each year. The rates are changed by:
- A.
Federal Government
- B.
Minister of Finance
- C.
Provincial Legislature
- D.
Revenu Québec
Correct Answer
A. Federal GovernmentExplanation
The correct answer is the Federal Government. The Canada Pension Plan rates are generally changed on the first of January each year, and this change is implemented by the Federal Government. The Federal Government has the authority to make adjustments to the rates of the Canada Pension Plan, which is a social insurance program that provides retirement, disability, and survivor benefits to eligible individuals. The Minister of Finance and the Provincial Legislature do not have the power to change the rates, and Revenu Québec is not responsible for this task.Rate this question:
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- 20.
What type of stakeholder of the payroll department are unions and courts considered to be?
- A.
External
- B.
Government
- C.
Internal
- D.
Both external and internal
Correct Answer
A. ExternalExplanation
Unions and courts are considered external stakeholders of the payroll department because they are not directly involved in the day-to-day operations of the department. Unions represent the interests of the employees and negotiate with the department on their behalf, while courts may be involved in legal disputes related to payroll. Both unions and courts have an external influence on the department's operations and decisions.Rate this question:
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- 21.
Legislation determines:
- A.
How the rules change
- B.
How the rules are to be applied
- C.
What the rules are
- D.
All of the above
Correct Answer
C. What the rules areExplanation
Legislation determines what the rules are. This means that legislation is responsible for creating and establishing the rules that govern a particular system or situation. It sets out the specific guidelines and regulations that individuals and organizations must follow. Legislation is the foundation upon which the rules are built, and it provides the framework for how the rules are to be understood and interpreted. Therefore, the correct answer is "what the rules are."Rate this question:
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- 22.
An organization that is not classified as a federal employer under the Canada Labour Code and has divisions in all provinces and territories of Canada must comply with the employment labour standards legislated by the:
- A.
Province/territory in which each individual employee works
- B.
Federal
- C.
Alberta
- D.
Non
Correct Answer
A. Province/territory in which each individual employee worksExplanation
An organization that is not classified as a federal employer under the Canada Labour Code and has divisions in all provinces and territories of Canada must comply with the employment labour standards legislated by the province/territory in which each individual employee works. This means that the organization must adhere to the specific employment laws and regulations of each province or territory where their employees are located, rather than following federal standards.Rate this question:
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- 23.
Employers, employees, and other departments of an organization are examples of:
- A.
Internal stakeholders
- B.
External stakeholders
- C.
Government stakeholders
- D.
All above
Correct Answer
A. Internal stakeholdersExplanation
The question is asking for examples of employers, employees, and other departments of an organization. These are all individuals or groups that are directly involved in the organization and have a stake in its success. Therefore, they can be classified as internal stakeholders.Rate this question:
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- 24.
Federal and provincial/territorial tax systems are based on the principle of
- A.
Self-assessment
- B.
Internal stakeholders
- C.
External stakeholders
- D.
stakeholders
Correct Answer
A. Self-assessmentExplanation
The correct answer is self-assessment. Federal and provincial/territorial tax systems operate on the principle of self-assessment, where taxpayers are responsible for accurately reporting their income and calculating their own tax liability. This means that individuals and businesses are expected to honestly assess and report their income, deductions, and credits to determine the amount of tax they owe.Rate this question:
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- 25.
A contract for service requires that an employer:
- A.
Does not control how the work is done
- B.
Withholds federal and provincial income taxes
- C.
Withholds Canada Pension Plan contributions
- D.
Has a degree of financial risk for the work
Correct Answer
A. Does not control how the work is doneExplanation
The correct answer is "does not control how the work is done." This is because a contract for service is typically used when the worker is considered self-employed and not an employee. In this type of contract, the employer does not have control over how the work is performed, allowing the worker to have more autonomy in their work. The other options, such as withholding taxes and contributions, are not necessarily requirements for a contract for service, as they can vary depending on the specific circumstances and legal requirements.Rate this question:
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- 26.
Which jurisdiction would the dockworkers of a shipping company in Newfoundland and Labrador fall under for employment standards?
- A.
Federal
- B.
Newfoundland and Labrador
- C.
None of the above
- D.
Employers choice
Correct Answer
A. FederalExplanation
The dockworkers of a shipping company in Newfoundland and Labrador would fall under the jurisdiction of the federal government for employment standards. This is because employment standards, such as minimum wage, hours of work, and overtime, are typically regulated by federal laws in Canada.Rate this question:
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- 27.
An arrangement whereby an individual agrees to work on a full-time or part-time basis for an organization for a specified or indeterminate period of time is:
- A.
a contract of service
- B.
A contract for service
- C.
Not a contract
- D.
None of the above
Correct Answer
A. a contract of serviceExplanation
A contract of service refers to an arrangement where an individual agrees to work for an organization on a full-time or part-time basis for a specified or indeterminate period of time. This implies that the individual is an employee of the organization and is subject to the terms and conditions of employment set out in the contract. On the other hand, a contract for service refers to an arrangement where an individual provides services to an organization as an independent contractor, rather than as an employee. Therefore, the correct answer is "a contract of service" as it accurately describes the given arrangement.Rate this question:
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- 28.
The rates for calculating Canada Pension Plan (CPP) contributions are changed by the:
- A.
Federal government through regulations
- B.
Provincial government through legislation
- C.
Provincial government through regulations
- D.
Federal government through legislation
Correct Answer
A. Federal government through regulationsExplanation
The correct answer is "federal government through regulations." The rates for calculating Canada Pension Plan (CPP) contributions are changed by the federal government through regulations. This means that the federal government has the authority to adjust the rates for CPP contributions as they see fit, without needing to pass new legislation. This allows for more flexibility in adjusting the rates to meet changing economic conditions or other factors.Rate this question:
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- 29.
An employee works in a bookstore in Vancouver, British Columbia. What jurisdiction would the employee fall under for Employment Standards?
- A.
Canada Labour Code
- B.
Federal
- C.
British Columbia
- D.
Both b & c
Correct Answer
C. British ColumbiaExplanation
The employee would fall under the jurisdiction of British Columbia for Employment Standards because they work in Vancouver, British Columbia.Rate this question:
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- 30.
Provincial labour/employment standards legislate:
- A.
Minimum wage
- B.
Shift start times
- C.
Minimum hours per week
- D.
Maximum wage
Correct Answer
A. Minimum wageExplanation
Provincial labour/employment standards legislate the minimum wage, which is the lowest amount that employers are legally required to pay their employees. This ensures that workers are paid a fair and reasonable wage for their work. Shift start times and minimum hours per week may be regulated by other laws or policies, but they are not specifically legislated by provincial labour/employment standards. The maximum wage is not typically regulated by any legislation and is determined by market forces and individual employment agreements.Rate this question:
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- 31.
Effective payroll practitioners should be:
- A.
Conscientious
- B.
Discreet
- C.
Trustworthy
- D.
all of the above
Correct Answer
D. all of the aboveExplanation
Effective payroll practitioners should possess all of the mentioned qualities. Being conscientious means being diligent and thorough in their work, ensuring accuracy and attention to detail. Being discreet implies maintaining confidentiality and handling sensitive information with care. Lastly, being trustworthy is crucial as payroll practitioners deal with financial matters and must be reliable and honest in their actions. Therefore, all of these qualities are essential for effective payroll practitioners.Rate this question:
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- 32.
Individuals, groups and agencies who share an interest in the function and output of the payroll department, are referred to as:
- A.
Stakeholders
- B.
Government
- C.
Unions
- D.
Employers
Correct Answer
A. StakeholdersExplanation
The term "stakeholders" refers to individuals, groups, and agencies who have a vested interest in the function and output of the payroll department. This includes employees, managers, shareholders, suppliers, customers, and any other parties who may be affected by or have an interest in the payroll processes and outcomes. These stakeholders may have varying levels of influence and involvement in the department, but they all have a stake in its success and outcomes.Rate this question:
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- 33.
An employee working in the telecommunication industry and living in Nova Scotia is subject to the labour/employment standards of which jurisdiction?
- A.
Federal
- B.
Ontario
- C.
Nova Scotia
- D.
Québec
Correct Answer
A. FederalExplanation
An employee working in the telecommunication industry and living in Nova Scotia is subject to the labour/employment standards of the federal jurisdiction because the telecommunication industry falls under federal regulation.Rate this question:
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- 34.
Regulations determine:
- A.
How the rules are to be applied
- B.
What is the rule
- C.
Rules
- D.
All above
Correct Answer
A. How the rules are to be appliedExplanation
Regulations determine how the rules are to be applied. This means that regulations provide guidance and instructions on how to interpret and enforce the rules. Regulations specify the procedures, standards, and criteria that need to be followed when applying the rules in different situations. They ensure consistency and fairness in the application of rules and help to ensure that the intended outcomes of the rules are achieved. Regulations play a crucial role in ensuring compliance and maintaining order in various fields such as law, finance, and healthcare.Rate this question:
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- 35.
A payroll practitioner's knowledge consists of:
- A.
Information on payroll compliance legislation
- B.
Information on payroll processes and payroll reporting
- C.
Technical, professional and personal skills
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
The correct answer is "all of the above" because a payroll practitioner's knowledge encompasses all the mentioned areas. They need to have knowledge of payroll compliance legislation to ensure that they are following all the necessary legal requirements. They also need to be familiar with payroll processes and reporting to accurately manage and report on employee compensation. Additionally, they require technical, professional, and personal skills to effectively perform their job duties and interact with others in the workplace.Rate this question:
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- 36.
Internal stakeholders do not include
- A.
Unions
- B.
Other departments
- C.
Employees
- D.
Employers
Correct Answer
A. UnionsExplanation
Internal stakeholders are individuals or groups within an organization who have a direct interest in its operations and outcomes. They typically include employees, employers, and other departments within the organization. However, unions are external stakeholders as they represent the interests of employees but are not part of the organization itself. Therefore, unions are not considered internal stakeholders.Rate this question:
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- 37.
In a contract of service (employee-employer relationship), the employer would generally
- A.
Assume the risk of financial loss alone
- B.
Reimburse employees for expenses incurred in the performance of their job
- C.
Supply the tools and equipment required
- D.
Meet all of the above factors
Correct Answer
D. Meet all of the above factorsExplanation
In a contract of service, the employer would generally meet all of the above factors. This means that the employer would assume the risk of financial loss alone, reimburse employees for expenses incurred in the performance of their job, and supply the tools and equipment required. This indicates that the employer takes on the responsibility for providing the necessary resources and support for the employee to carry out their job effectively, while also bearing the financial risks associated with the employment relationship.Rate this question:
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- 38.
An arrangement whereby an individual agrees to work on a full-time or part-time basis for an organization for a specified or indeterminate period of time is:
- A.
A contract of service
- B.
A contract for service
- C.
Contract
- D.
Non
Correct Answer
A. A contract of serviceExplanation
A contract of service refers to an arrangement where an individual agrees to work for an organization either on a full-time or part-time basis, for a specified or indeterminate period of time. This implies that the individual is an employee of the organization and is subject to the terms and conditions of employment. On the other hand, a contract for service typically refers to an arrangement where an individual provides services to an organization as an independent contractor or freelancer, rather than as an employee.Rate this question:
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- 39.
The Pensionable and Insurable Earnings Review identifies remittance deficiencies of:
- A.
Canada Pension Plan contributions and Employment Insurance premiums
- B.
Canada Pension Plan contributions and federal income tax deductions
- C.
Federal income tax deductions and Employment Insurance premiums
- D.
All of the above
Correct Answer
A. Canada Pension Plan contributions and Employment Insurance premiumsExplanation
The Pensionable and Insurable Earnings Review identifies remittance deficiencies of Canada Pension Plan contributions and Employment Insurance premiums. This means that if there are any issues or discrepancies in the remittance of these two types of payments, they will be identified and addressed through the review process.Rate this question:
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- 40.
Employment Standards are rules legislated by each provincial/territorial or federal jurisdiction that dictate such issues as:
- A.
Hours of work
- B.
Minimum wage
- C.
Overtime
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
The correct answer is "all of the above" because employment standards encompass all the issues mentioned in the question. These standards are laws and regulations set by the government to protect workers' rights and ensure fair and safe working conditions. They cover various aspects of employment, including the number of hours an employee can work, the minimum wage they should be paid, and the rules regarding overtime work. Therefore, "all of the above" accurately represents the scope of employment standards.Rate this question:
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- 41.
Regulations determine
- A.
How the rules are to be applied
- B.
rules
- C.
What tare the rules
- D.
All above
Correct Answer
A. How the rules are to be appliedExplanation
Regulations determine how the rules are to be applied. Regulations provide guidelines and instructions on how the rules should be implemented and enforced. They specify the procedures, requirements, and limitations that should be followed when applying the rules. Regulations ensure consistency and fairness in the application of rules and help prevent any misuse or misinterpretation of the rules. By determining how the rules are to be applied, regulations play a crucial role in maintaining order and ensuring that the rules are effectively and consistently enforced.Rate this question:
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- 42.
- Which of the following is not one of the factors that the Canada Revenue Agency (CRA) uses to distinguish a contract of service from a contract for service?
- A.
Level of control the payer has over the worker
- B.
The amount of remuneration paid
- C.
Degree of financial risk taken by the worker
- D.
Worker's opportunity for profit
Correct Answer
B. The amount of remuneration paidExplanation
The Canada Revenue Agency (CRA) uses several factors to distinguish a contract of service from a contract for service. These factors include the level of control the payer has over the worker, the degree of financial risk taken by the worker, and the worker's opportunity for profit. The amount of remuneration paid is not one of the factors used by the CRA to make this distinction.Rate this question:
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- 43.
A self-employed individual assumes a degree of financial risk under a(n):
- A.
Contract for service
- B.
Contract of service
- C.
Employment contract
- D.
Union contract
Correct Answer
A. Contract for serviceExplanation
A self-employed individual assumes a degree of financial risk under a contract for service because they are responsible for their own expenses and liabilities. They are not entitled to benefits or protections that are typically provided under an employment contract or union contract. A contract for service typically involves a self-employed person providing a service to a client or customer, and they are responsible for managing their own finances and assuming any financial risks associated with their work.Rate this question:
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- 44.
Which of the following is not one of the factors used by The Canada Revenue Agency (CRA) to determine a contract of service?
- A.
Level of control the payer has over the worker
- B.
The degree of financial risk taken by the worker
- C.
Submission of an invoice to accounts payable
- D.
Whether or not the worker provides the tools and equipment
Correct Answer
C. Submission of an invoice to accounts payableExplanation
The Canada Revenue Agency (CRA) uses several factors to determine a contract of service. These factors include the level of control the payer has over the worker, the degree of financial risk taken by the worker, and whether or not the worker provides the tools and equipment. However, the submission of an invoice to accounts payable is not one of the factors used by the CRA.Rate this question:
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- 45.
Canada Pension Plan rates generally change on the first of January of each year. This is an example of:
- A.
A regulation
- B.
Government policy
- C.
Legislation
- D.
A Pensionable and Insurable Earnings Review
Correct Answer
A. A regulationExplanation
The given statement suggests that Canada Pension Plan rates change on the first of January each year. This indicates that the change in rates is governed by a set of rules or guidelines, which is typically referred to as a regulation. Regulations are specific rules or requirements set by a governing body, such as a government agency, to ensure compliance and control in a particular area. Therefore, the statement aligns with the concept of a regulation.Rate this question:
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- 46.
A person who carries out a contract of service is considered a(n):
- A.
Employee
- B.
Contract worker
- C.
Self-employed person
- D.
Independent contractor
Correct Answer
A. EmployeeExplanation
A person who carries out a contract of service is considered an employee. This means that they work under an employer and are subject to their control and direction in terms of their work tasks and schedule. The employer also has the responsibility to provide benefits such as paid leave and insurance for the employee. This is different from a contract worker, self-employed person, or independent contractor who may have more autonomy and control over their work.Rate this question:
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- 47.
What type of stakeholder of the payroll department are unions and courts considered to be?
- A.
External
- B.
Both external and internal
- C.
Government
- D.
Internal
Correct Answer
A. ExternalExplanation
Unions and courts are considered external stakeholders of the payroll department because they are not directly part of the organization's internal structure. Unions represent the interests of the employees and negotiate with the organization on their behalf, while courts can be involved in legal disputes related to payroll matters. As external stakeholders, they have an influence on the payroll department's operations and decision-making processes.Rate this question:
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- 48.
A payroll practitioner must ensure the organization is compliant with:
- A.
All stakeholder requirements
- B.
Union collective agreements
- C.
Group insurance policies
- D.
Government legislation
Correct Answer
A. All stakeholder requirementsExplanation
A payroll practitioner must ensure that the organization is compliant with all stakeholder requirements. This includes meeting the demands and expectations of various stakeholders such as employees, management, shareholders, and customers. By ensuring compliance with these requirements, the payroll practitioner can contribute to the overall success and satisfaction of the organization's stakeholders. This encompasses not only legal and regulatory obligations but also any specific requests or standards set by the stakeholders.Rate this question:
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- 49.
The main stakeholders of the payroll function are
- A.
External stakeholders
- B.
Federal and provincial/territorial governments
- C.
Internal stakeholders
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
The correct answer is "all of the above" because the main stakeholders of the payroll function include external stakeholders such as employees, vendors, and customers who are impacted by the payroll process. Additionally, federal and provincial/territorial governments are also stakeholders as they have regulations and requirements that need to be followed in payroll processing. Lastly, internal stakeholders such as managers, HR departments, and finance teams are also involved in the payroll function as they rely on accurate and timely payroll information for decision-making and financial reporting purposes.Rate this question:
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- 50.
Where an employee-employer relationship exists, the employer must withhold:
- A.
Canada Pension Plan contributions
- B.
Employment Insurance premiums
- C.
Income tax
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
In an employee-employer relationship, the employer is responsible for withholding certain deductions from the employee's salary. This includes Canada Pension Plan contributions, Employment Insurance premiums, and income tax. The correct answer, "all of the above," indicates that all three of these deductions must be withheld by the employer.Rate this question:
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