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Multiple Choice Quiz
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1.
A company deducts $230 in Employment Insurance and $195 in Canada Pension from the weekly payroll of its employees. Calculate the company's expense for these items for the week?
A)$517
B)$195
C)$425
D)$503
2.
Which of the following statements is false?
A)CPP is a national contributory retirement pension scheme
B)EI is an employee financed employment insurance plan
C)Gross pay is the amount of earnings before any deductions for taxes
D)Personal tax credits determine the amount of income taxes withheld
3.
An employee's Individual Earnings Record provides a(n) ___________ summary of the employee's working time, gross earnings, deductions, and net pay.
A)monthly
B)hourly
C)yearly
D)weekly
4.
Which of the following statements is true?
A)CPP is a national contributory retirement pension for employees
B)A payroll bank account is used for paying amounts withheld for taxes
C)A payroll deduction is based on the amount of an employee's net pay
D)Withholding table shows withholdings at various times of the year
5.
Which item is not an amount statutorily withheld from employees' wages?
A)Life insurance premium
B)Workers' compensation
C)Employment Insurance
D)Income tax
6.
The employer must remit an Employment Insurance tax ______________the amount withheld from all employees.
A)equal to
B)of 1.5 times
C)of 1.4 times
D)of one-half
7.
Which of the following statements is false regarding Employment Insurance coverage?
A)Coverage excludes teachers, hospital workers, and top level executives
B)The collection function is carried on by Revenue Canada
C)The employer pays 1.4 times the amount withheld from all employees
D)The weekly Employment benefits are uniform throughout the regions
8.
Which of the following statements is true?
A)Revenue Canada performs the collection function for EI.
B)The employer's CPP liability is recorded at the time of payment.
C)Worker's compensation legislation insures employees' while off the job
D)CPP contributions are based on net earnings
9.
Sally works 48 hours in a week in June. She is paid $10 per hour for regular hours and double-time for overtime. Employees are expected to work a standard 40-hour week. Her gross pay is:
A)$560
B)$480
C)$620
D)$960
10.
Anne is paid a salary of $500 per week. Withholdings include CPP of $20, EI of $15 and tax of $100. The journal entry to record her payroll will include
A)a debit to salary expense for $500
B)a debit to wage expense for $500
C)a credit of $500 to wages and salary payable
D)a debit to CPP expense of $20.
11.
Workers' compensation premium is calculated based on:
A)the accident experience of the industrial classification
B)The employers' total payroll.
C)The employer's total CPP contributions and EI deductions.
D)a and b
12.
Which of the following is true regarding the T-4 form:
A)It reports total wages for the preceding year.
B)It reports income taxes withheld.
C)It reports CPP contributions and EI deductions.
D)All of the above.
13.
An employee is entitled to a two-week vacation. This increases the employer's payroll expenses by
A)1.96%
B)4%
C)6.12%
D)8.33%





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