1. Mary has a job as waitress at a small restaurant. Tips are pooled in a jar and distributed back to employees at the end of each shift by the manager. These tips are not considered taxable income because they are funded by the patrons rather than the owner of the business. T or F

2. The employer may choose any pay cycle they like. T or F

3. Salaried employees are paid based on the number of hours worked in a pay cycle. T or F

4. Pay cycles are standardized in Canada. T or F

5. Taxable benefits are cash amounts paid to employees in exchange for working. T or F

6. The employment contract may express payment in any method imagined (for example: per hour, per year, per unit, per dollar sold, per telephone call, per page written, etc.).

7. Tips are considered to be a form of earnings. T or F

8. What are the gross weekly earnings for an individual who earns $26, 000 per year and works 35 hours per week?

a. $400

b. Depends on tax rate

c. $1000

d. $800

e. $500

9. An employer with a one-week pay cycle offers Rob $18 per hour and 3 weeks paid vacation in the summer. Calculate his wages for the period if he worked 20 hours.

a. $381.60

b. $360.00

c. $361.20

d. $339.40

e. $410.40

10. The following is not an example of a taxable allowance:

a. Cash paid to an employee to purchase normal clothing to wear on the job.

b. Cash paid to cover living expenses.

c. Cash paid to cover the cost of personal vehicle which may be used for company business.

d. Cash paid to cover travel expenses such as hotels, airfare, taxis, meals, etc.

e. Cash paid to cover entertainment costs not for the benefit of the company.

11. Cell phone service paid for by the employer for the employee's personal use is:

a. Not taxable

b. Taxable with CPP and EI deductions

c. Taxable with CPP deductions but not EI

d. Taxable with EI deductions but not CPP

e. Not taxable but subject to CPP deductions