TRUE$/$FALSE $(10$ marks$)$

Write $"$ T $"$ if the statement is true and $"$ F $"$ is the statement is false.

$10$ questions, $1$ mark each

$1$ John is a full time student. He walks dogs for a local pet store outside school

$1$

hours. He needs to wear a standard company work shirt and he is paid by

the hour. John is self$-$employed in this case.

$2$ The Canada Revenue Agency acts as the agent to collect CPP contributions

and El premium on behalf of Service Canada.

$3$ A credit union may issue garnishment orders.

$4$ With very few exceptions, every person over the age of $16$ who works in

Canada outside of Quebec and earns more than a minimum amount $($ $$3,500$

per year$)$ must contribute to Canada Pension Plan $($CPP$).$

$5$ The two largest disbursements of payroll funds is net pay to employees and

$5$

the remittance to the CRA for employee withholdings and employer

matching for CPP contributions, EI premiums, and income taxes.

$6$ For payroll compliance, the banking industry is regulated by the Canada

Labour Code because it is under federal jurisdiction.

$7$ Group term life insurance policies $-$ employer$-$paid premium is a taxable

$7$

benefit.

$8$ It is the employer's responsibility to obtain a completed TD$1$ form from each

$8$

new employee, and the employee's responsibility to provide any updates.

$9$ Allowance, similar to expense reimbursement, is paid through the accounts

$9$

payable administrator.

$10$ Vacation pay must be disbursed each pay cycle in addition to regular

$10$

earnings.

MULTIPLE CHOICE $(20$ marks$)$

Choose the one alternative that best completes the statement or answers the question.

$10$ questions, $2$ marks each

$11$ If the TD$1$ form is not available, the employer should assume the basic

personal tax exemption is being claimed, which is:

A$)$ Claim code $0$

B$)$ Claim code $1$

C$)$ Claim code $2$

D$)$ Claim code X

$12$ Which of the following is one of the major types of computerized processing $12$

systems?

A$)$ Stand$-$alone computer systems

B$)$ Hybrid integrated systems

C$)$ Integrated management systems

D$)$ All of the above

$13$ If an employee's pensionable income is $$3,000$ monthly, his$/$her monthly

contributory income is:

A$)$ $$3,000$

B$)$ $$2,932\mathrm{.}70$

C$)$ $$2,854\mathrm{.}17$

D$)$ $$2,708\mathrm{.}34$