Payroll Fundamentals 1

True or False. When calculating the Canada/Qubec Pension Plan contribution on a non- regular payment, paid separately from the employees regular salary or wages, the pay period exemption must be applied to the payment.

True or False. Lump-sum tax rates are applied based on the amount of each individual payment during the taxation year. 1 Point

Death benefits are subject to: a) Canada/Qubec Pension Plan contributions

b) Employment Insurance premiums

c) Income Taxes

d) All of the above

True or False. If an employer charges a loan interest rate that is lower than the government-prescribed rate, the employee has received a taxable benefit from employment.

Natalie Robinson works for Drury Builders in Spencerville, Alberta. Natalie claims code 2 on her federal and provincial TD1s. Her regular bi-weekly salary is $1,538.26 and she has a group term life insurance non-cash taxable benefit of $12.74 per pay. She will not reach the annual maximums for CPP contributions or EI premiums with this payment. Calculate Natalies net pay.