Question 1

The EI premium rate is currently 1.88% of gross earnings.

Accepted Answer

A) True 
 B)False

Question 2

The T4 contains information about the employee's earnings, statutory deductions and social insurance number.

Accepted Answer

A) True 
 B)False

Question 3

Given the following payroll summary for January, 2019, make the necessary journal entry to record it:
$$\begin{array} { l c l l c l l r } 
& \text { Gross } & \text { Income } & &&& { \text { Department } } \
\text { Employee } & \text { Pay } & \text { Tax } & \text { CPP } & \text { EI } & \text { Net } & \text { Office } & \text { Sales } \
\text { Sara W. } & 400 & 60.00 & 16.47 & 7.52 & 316.01 & 400 & \
\text { Howard R. } & 300 & 45.00 & 11.52 & 5.64 & 237.84 & & 300 \
\text { Pinder C. } & 500 & 75.00 & 21.42 & 9.40 & 394.18 & & 500 \
 {  } & 1,200 & 180.00 & 49.41 & 22.56 & 948.03 & 400 & 800
\end{array}$$

Accepted Answer

Office Salaries Expense 400.00

Question 4

Like CPP, Employment Insurance has a cut-off point where there is no longer Employment Insurance withheld.

Accepted Answer

A) True 
 B)False

Question 5

All employees must contribute to provincial and federal income tax.

Accepted Answer

A) True 
 B)False

Question 6

Gross Earnings are the same as

Accepted Answer

A)  regular earnings only. 
B)  regular earnings + overtime earnings. 
C)  net earnings. 
D)  net earnings + overtime earnings. 
A)  regular earnings only. 
B)  regular earnings + overtime earnings. 
C)  net earnings. 
D)  net earnings + overtime earnings.

Question 7

Income Taxes have no maximum amount.

Accepted Answer

A) True 
 B)False

Question 8

The employee's individual earnings record contains the information about an employee's gross earnings, deductions, and net pay for each payroll period.

Accepted Answer

A) True 
 B)False

Question 9

CRA stands for

Accepted Answer

A)  Canada Revenue Agency. 
B)  Civil Revenue Agency. 
C)  Canadian Revenue and Affiliates. 
D)  Canadian Revenue Association. 
A)  Canada Revenue Agency. 
B)  Civil Revenue Agency. 
C)  Canadian Revenue and Affiliates. 
D)  Canadian Revenue Association.

Question 10

The payroll register does NOT contain

Accepted Answer

A)  gross pay. 
B)  deductions. 
C)  net pay. 
D)  ledger accounts for payroll. 
A)  gross pay. 
B)  deductions. 
C)  net pay. 
D)  ledger accounts for payroll.

Question 11

The individual employee earnings record provides a summary of all of the following for a single employee EXCEPT

Accepted Answer

A)  earnings. 
B)  withholding taxes. 
C)  net pay. 
D)  allowances. 
A)  earnings. 
B)  withholding taxes. 
C)  net pay. 
D)  allowances.

Question 12

If the employee has $200 withheld from their cheque for federal income tax, what is the amount that the employer would need to pay for their portion of the federal income tax?

Accepted Answer

A)  $200 
B)  $100 
C)  $0 
D)  $400 
A)  $200 
B)  $100 
C)  $0 
D)  $400

Question 13

CPP, EI and Income Tax are statutory deductions.

Accepted Answer

A) True 
 B)False

Question 14

The amount deducted for CPP is reported at the end of the year to the employee on a(n)

Accepted Answer

A)  TD1. 
B)  Record of Employment. 
C)  Payroll Register. 
D)  T4. 
A)  TD1. 
B)  Record of Employment. 
C)  Payroll Register. 
D)  T4.

Question 15

Payroll Tax Payable is credited for the amount of net pay.

Accepted Answer

A) True 
 B)False

Question 16

Gross pay is the amount that the employee takes home.

Accepted Answer

A) True 
 B)False

Question 17

The Income Tax, EI and CPP tables are found on the Canada Revenue Agency website.

Accepted Answer

A) True 
 B)False

Question 18

The payroll register

Accepted Answer

A)  is a worksheet. 
B)  shows all employee information related to an entire pay period. 
C)  keeps track of an individual employee's payroll history for a calendar year. 
D)  Both A and B are correct. 
A)  is a worksheet. 
B)  shows all employee information related to an entire pay period. 
C)  keeps track of an individual employee's payroll history for a calendar year. 
D)  Both A and B are correct.

Question 19

The automatic increase of claim amounts that account for inflation is called

Accepted Answer

A)  cost of living increases. 
B)  indexing. 
C)  increments. 
D)  deductions. 
A)  cost of living increases. 
B)  indexing. 
C)  increments. 
D)  deductions.

Question 20

The formula for computing EI Premiums to be deducted from an employee's weekly pay is Gross Pay × 1.88%, maximum $67.30.

Accepted Answer

A) True 
 B)False

The EI premium rate is currently 1.88% of gross earnings.

The T4 contains information about the employee's earnings, statutory deductions and social insurance number.

Like CPP, Employment Insurance has a cut-off point where there is no longer Employment Insurance withheld.

All employees must contribute to provincial and federal income tax.

Gross Earnings are the same as

Income Taxes have no maximum amount.

The employee's individual earnings record contains the information about an employee's gross earnings, deductions, and net pay for each payroll period.

CRA stands for

The payroll register does NOT contain

The individual employee earnings record provides a summary of all of the following for a single employee EXCEPT

If the employee has $200 withheld from their cheque for federal income tax, what is the amount that the employer would need to pay for their portion of the federal income tax?

CPP, EI and Income Tax are statutory deductions.

The amount deducted for CPP is reported at the end of the year to the employee on a(n)

Payroll Tax Payable is credited for the amount of net pay.

Gross pay is the amount that the employee takes home.

The Income Tax, EI and CPP tables are found on the Canada Revenue Agency website.

The payroll register

The automatic increase of claim amounts that account for inflation is called

The formula for computing EI Premiums to be deducted from an employee's weekly pay is Gross Pay × 1.88%, maximum $67.30.

Accounting Concepts and Procedures: an Introduction

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Banking Procedures and Control of Cash

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Completion of the Accounting Cycle for a Merchandising Company

Filters

Exam 9: Payroll Procedures: the Employees Perspective

The EI premium rate is currently 1.88% of gross earnings.

The T4 contains information about the employee's earnings, statutory deductions and social insurance number.

Like CPP, Employment Insurance has a cut-off point where there is no longer Employment Insurance withheld.

All employees must contribute to provincial and federal income tax.

Gross Earnings are the same as

Income Taxes have no maximum amount.

The employee's individual earnings record contains the information about an employee's gross earnings, deductions, and net pay for each payroll period.

CRA stands for

The payroll register does NOT contain

The individual employee earnings record provides a summary of all of the following for a single employee EXCEPT

If the employee has $200 withheld from their cheque for federal income tax, what is the amount that the employer would need to pay for their portion of the federal income tax?

CPP, EI and Income Tax are statutory deductions.

The amount deducted for CPP is reported at the end of the year to the employee on a(n)

Payroll Tax Payable is credited for the amount of net pay.

Gross pay is the amount that the employee takes home.

The Income Tax, EI and CPP tables are found on the Canada Revenue Agency website.

The payroll register

The automatic increase of claim amounts that account for inflation is called

The formula for computing EI Premiums to be deducted from an employee's weekly pay is Gross Pay × 1.88%, maximum $67.30.

Accounting Concepts and Procedures: an Introduction

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Banking Procedures and Control of Cash

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Completion of the Accounting Cycle for a Merchandising Company

Filters