True / False 1. ____Employment Insurance is withheld from employees' wages at the rate of 1.58% on only the first $100 earned weekly. 2. ____ An employer incurs a Canada Pension Plan expense equal to the sum of the CPP withheld from the wages of all its employees. 3. ____Canada Pension Plan is levied equally on the employee and the employer. 4. ____Employment Insurance is withheld from wages earned, with the withholding to stop in 2020 as soon as the employee has earned $57,800. 5. ____Since payroll taxes are levied on wages actually paid, there is no legal liability for payroll taxes associated with the accrual of wages. 6. ____ Employers and employees both must pay Employment Insurance based on a percentage of the employees' total wages, up to a yearly maximum. 7. ____Federal income taxes are withheld from wages earned, except the withholding stops each year as soon as the employee has earned more than $200,000. 8. ____Federal income taxes withheld from an employee's wages are expenses of the employee, not the employer, they should not be treated as liabilities of the employer. 9. ____In accounting for payrolls, the Payroll Register is a book of original entry which is used for journalizing payroll information. 10. ____The amount of federal income tax to be withheld from each employee's wages is determined solely by the amount of wages earned. 11. ____According to law, a T-4 form showing wages earned and taxes withheld must be given to each employee within two months after the calendar year-end. 12. ____Canada Pension Plan is withheld from wages earned, except the withholding stops each year as soon as the employee has earned the maximum pensionable earnings for that year. 13. ____ Canada Pension Plan deductions are taxes to provide support to employees during lay off, illness or maternity. 14. ____Employment Insurance is levied equally on the employee and the employer.

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15. ____The same form is used to report both the employer share of payroll taxes and employee income taxes withheld. 16. ____Employee income taxes are paid solely by employers based on a percentage of total wages earned by the employee. 17. ____Payroll taxes levied on employers include Canada Pension and Employment Insurance. 18. ____Workers compensation plans are for the benefit of the employees but are paid for by the employers. 19. ____Vacation pay is not subject to income tax deductions. 20. ____The entries for payroll transactions are recorded in the Payroll Register.