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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Individual Pay Calculations | 40% | - Regular earnings
|
| Topic 2: Termination and Special Payments | 30% | - Termination payments
|
| Topic 3: Communication and Compliance | 10% | - Stakeholder communication
|
| Topic 4: Record of Employment (ROE) | 20% | - ROE completion requirements
|
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NEW QUESTION # 54
Charlene receives $50.00 each pay for her meals. This is an example of:
Answer: C
Explanation:
A fixed amount paid to an employee for meals each pay period is typically a meal allowance. CRA guidance distinguishes an allowance from a reimbursement: an allowance is usually a set amount paid without the employee having to submit receipts for actual costs, while a reimbursement repays specific expenses and is generally supported by receipts or an expense claim.
Because Charlene "receives $50.00 each pay for her meals," it is a flat amount, which aligns with an allowance rather than a reimbursement. Whether the allowance is taxable or non-taxable depends on the facts (for example, whether it is reasonable and paid under conditions CRA recognizes as non-taxable for certain travel situations). If it's not a reasonable travel allowance under CRA's exceptions, it is generally a taxable allowance and must be included in income with appropriate deductions.
So the correct classification is A (an allowance).
NEW QUESTION # 55
Which statutory deductions is salary continuance subject to?
Answer: D
Explanation:
Salary continuance means the employee continues to receive regular pay (and often benefits) for a period after their job ends. In this arrangement, the payments are treated like regular employment income for payroll purposes, so the usual payroll deductions apply. A Government of Canada guidance page explains that when severance is paid as salary continuance, the employee pays income tax like regular employment income and that the usual deductions apply, including CPP (or QPP), EI premiums, and RPP contributions (where applicable).
This aligns with standard payroll obligations in CRA's payroll remittance framework: employers deduct and remit CPP contributions, EI premiums, and income tax on employment income unless a specific exemption applies.
Therefore, the correct option is B (All deductions)-and in Quebec, that "all deductions" concept includes Quebec-specific programs (for example QPP/QPIP where applicable) based on the employee's province of employment and insurability rules.
NEW QUESTION # 56
Dollar amounts that are paid to an employee to cover expenses that they incurred while performing their job, but are not considered in the calculation of an employee's earnings are:
Answer: C
Explanation:
An expense reimbursement is a repayment to an employee for business costs they already paid personally (for example, meals, mileage, supplies), typically supported by receipts or an expense report. CRA's guidance explains that a reimbursement is a payment made to repay amounts the employee spent while conducting the employer's business, and that a reasonable reimbursement is generally not included in the employee's income.
That's why reimbursements are generally not part of "earnings" for payroll calculations-they are not compensation for work performed; they are repayment of a business expense. This differs from an allowance, which is usually a fixed amount paid without requiring receipts; allowances are often taxable unless a specific CRA exception applies.
So the correct term for "dollar amounts paid to cover job expenses incurred, but not considered earnings" is expense reimbursements (option D). Payroll best practice is to ensure reimbursements are properly documented and reasonable to support non-taxable treatment.
NEW QUESTION # 57
National Hardware, an Ontario organization, will be terminating the employment of Emilie St. Germain on October 28, 2019, the last day of the pay period. Emilie started with National Hardware on September 19,
2007. Complete the paper Record of Employment (ROE) for Emilie based on the information provided in the following chart.
Note: Vacationable earnings already include the pay in lieu of notice.
All dates must be entered in the format DDMMYYYY.
Paper ROE (Form Reference)
Complete the following paper ROE blocks for Emilie:
Block 6 - Pay period type
Block 8 - Social Insurance Number
Block 10 - First day worked
Block 11 - Last day for which paid
Block 12 - Final pay period ending date
Block 15A - Total insurable hours
Block 15B - Total insurable earnings
Block 17A - Vacation pay
Block 17C - Other monies (Pay in lieu of notice)
Block 17C - Other monies (Severance)
Step 1 - Complete Block 6
Enter the pay period type for Emilie.
Step 2 - Complete Block 8
Enter Emilie's Social Insurance Number.
Step 3 - Complete Block 10
Enter Emilie's first day worked in DDMMYYYY format.
Step 4 - Complete Block 11
Enter Emilie's last day for which paid in DDMMYYYY format.
Step 5 - Complete Block 12
Enter the final pay period ending date in DDMMYYYY format.
Step 6 - Complete Block 15A
Calculate and enter total insurable hours.
Given:
Hours worked per pay period = 80.00
Bi-weekly ROE pay period chart captures 27 pay periods
Step 7 - Complete Block 15B
Calculate and enter total insurable earnings.
Given:
Pay period earnings = $1,884.62
Bi-weekly ROE pay period chart captures 27 pay periods
Step 8 - Complete Block 17A
Calculate and enter vacation pay.
Given:
Vacation pay rate = 6%
Vacationable earnings = $52,050.00
(already includes pay in lieu of notice)
Step 9 - Complete Block 17C
Enter the correct amount in 17C for "Other monies" specified as Pay in lieu of notice.
Given:
Pay in lieu of notice = 8 weeks
Use weekly earnings derived from the bi-weekly pay period earnings.
Step 10 - Complete Block 17C
Enter the correct amount in 17C for "Other monies" specified as Severance.
Given:
Severance = 10 weeks
Use the same weekly earnings used in Step 9.
Answer:
Explanation:
See the Below Explanation for complete Solution.
Explanation:
Step 1 - Block 6
Bi-weekly
Step 2 - Block 8
435837159
Step 3 - Block 10
September 19, 2007 # 19092007
Step 4 - Block 11
October 28, 2019 # 28102019
Step 5 - Block 12
October 28, 2019 # 28102019
Step 6 - Block 15A (Total insurable hours)
80.00 × 27 = 2160
Block 15A = 2160
Step 7 - Block 15B (Total insurable earnings)
$1,884.62 × 27 = $50,884.74
Block 15B = 50,884.74
Step 8 - Block 17A (Vacation pay)
$52,050.00 × 6% = $3,123.00
Block 17A = 3,123.00
Step 9 - Block 17C (Pay in lieu of notice)
Weekly earnings = $1,884.62 ÷ 2 = $942.31
Pay in lieu = $942.31 × 8 = $7,538.48
Block 17C (Pay in lieu of notice) = 7,538.48
Step 10 - Block 17C (Severance)
Severance = $942.31 × 10 = $9,423.10
Block 17C (Severance) = 9,423.10
NEW QUESTION # 58
Evangeline earns $1,075.00 weekly plus $154.00 in overtime. Calculate Evangeline's Quebec Parental Insurance Plan (QPIP) premium.
Answer:
Explanation:
$5.28 (employee QPIP premium for the week)
Explanation:
QPIP premiums are calculated on an employee's insurable earnings in Quebec (up to the annual maximum insurable earnings). For 2026, Revenu Quebec shows the employee QPIP premium rate is 0.430% (0.00430) and the maximum insurable earnings are $103,000.
Step 1: Determine Evangeline's weekly insurable earnings (assuming all earnings are QPIP-insurable and the annual maximum will not be exceeded, as the question implies):
Regular earnings $1,075.00 + overtime $154.00 = $1,229.00.
Step 2: Apply the employee QPIP rate:
$1,229.00 × 0.430% = $1,229.00 × 0.00430 = $5.2847.
Step 3: Round to cents (standard payroll practice): $5.28.
Payroll would deduct $5.28 from Evangeline's pay for QPIP for that week and remit it along with other source deductions as required. The deduction continues until the employee reaches the annual QPIP maximum premium (based on the annual insurable earnings limit).
NEW QUESTION # 59
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