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Quiz: The payroll program account

6 questions

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1 A family hires a nanny and asks whether payroll rules apply to a household. Yes — an individual who employs a person in their household is an employer for payroll purposes Only where the employee works full-time hours No — payroll obligations apply only to businesses Only where the household employs more than one person

Answer key unconfirmed — rests on 2 unverified claims.

2 A business with an existing business number is hiring its first employee. What does it need? A payroll program account added to the existing business number Nothing — the existing business number covers payroll A second business number for payroll A separate registration with Service Canada

Answer key unconfirmed — rests on 3 unverified claims.

3 An employee has not completed a TD1. What does the employer do? Withhold nothing until a TD1 is received Calculate income tax withholding using the basic claim amounts Ask CRA to determine the claim amounts Withhold at the highest rate until a TD1 is received

Answer key unconfirmed — rests on 2 unverified claims.

4 An employee's social insurance number begins with a specified digit. What does that signify? The holder is exempt from CPP contributions The number is temporary and expires annually The holder is authorised to work only for a designated employer The holder is a non-resident for tax purposes

Answer key unconfirmed — rests on 2 unverified claims.

5 A sole proprietor draws money from her business monthly and asks how to withhold on it. A separate caller is the sole shareholder of his corporation, paid a salary. Both must withhold source deductions on the amounts Neither withholds, since both are owner-operators The sole proprietor does not pay herself employment income and does not withhold; the corporation can employ its shareholder, so ordinary payroll obligations apply there The sole proprietor withholds; the corporation does not, since a shareholder is not an employee

Answer key unconfirmed — rests on 2 unverified claims.

6 An employer needs to run two separate payrolls with different remittance cycles. Is that possible? No — one payroll program account per business number Yes, but only by obtaining a second business number Yes — an employer may hold more than one payroll program account, distinguished by the four-digit reference number Yes, but both must follow the same remittance cycle

Answer key unconfirmed — rests on 1 unverified claim.

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