Payroll Fundamentals 1 Exam with
Correct Answers 100%
RQ and CRA define a car allowance as reasonable if: - CORRECT ANSWER-- The
allowance is
... [Show More] based solely on business kilometres driven in a calendar year - the amount provided is based on the following government-prescribed reasonable
guidelines
- $0.58 per km for the first 5,000 business km's in the year ($0,62 in the Yukon, NWT &
Nunavut)
- $0.51 thereafter ($0.56 for YK, NWT, NT) - the employer does not reimburse the employee for expenses related to the same use
of the vehicle
Personal Driving includes: - CORRECT ANSWER-- vacation travel - driving to conduct personal business - travel between home and work, even if the employer insists the employee drive the
vehicle home
Business driving includes: - CORRECT ANSWER-- driving to existing and prospective
clients, points of call, and other office locations of the employer - when an employee travels directly from home to a point of call, which is not the
employer's place of business where the employee regularly reports for work - when the employees travels home directly from a point of call
Availability (automobiles) - CORRECT ANSWER-The number of thirty-day periods that
the automobile is available to the employee for the current taxation year. The employee
has access to or control over the vehicle.
Automobile - CORRECT ANSWER-A motor vehicle that is designed or adapted to
primarily carry individuals on highways and streets, and has seating capacity of not
more than the driver and eight passengers
If a gift or award is given to an employee in cash - CORRECT ANSWER-The amount is
considered pensionable, insurable and taxable to the employee, subject to all statutory
deductions
Overtime meal allowance is considered non-taxable if (RQ): - CORRECT ANSWER--
overtime is done at the employer's request and is expected to last for at least two
consecutive hours - overtime is done rarely or on an occasional basis - the meal expenses are reimbursed upon presentation of receipts - the meal expenses reimbursed or the value of the meal provided is reasonable
The four categories of employment income - CORRECT ANSWER-- Earnings
- Allowances - Benefits - Taxable expense reimbursement
Earnings - CORRECT ANSWER-Dollar amounts the employer pays an employee for
the work they perform
Types of earnings - CORRECT ANSWER-- a salary - a rate for each hour worked - a rate per piece of goods produced or picked - a disability payment for time off work due to illness - a payment for vacation time - a premium payment for overtime hours worked - a premium payment for hours worked on shift
Allowances - CORRECT ANSWER-Additional dollar amounts paid to employees for the
use, or anticipated use, of their personal property for business purposes
Benefits - CORRECT ANSWER-Dollar values attributed to something the employer has
either provided to an employee or paid for on an employee's behalf
Expense Reimbursements - CORRECT ANSWER-Dollar amounts paid to employees to
cover expenses that they incur while performing their job.
Regular payments - CORRECT ANSWER-Have an established frequency, such as
weekly-paid salary or wages
Non-regular payments - CORRECT ANSWER-payments that do not occur each pay
period, for example, a bonus or a retroactive adjustment
Salary - CORRECT ANSWER-A fixed amount of money paid to an employee for each
pay period.
Salary per pay period - CORRECT ANSWER-Annual sala [Show Less]