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Quiz: Pensionable and insurable earnings reviews

6 questions

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1 An employer receives a pensionable and insurable earnings review report and assumes it is being audited. It is a preliminary step that always precedes an audit It is generated automatically from the employer's own filed information return and is not an audit It is a random compliance check unrelated to the return It is an audit, limited to payroll

Answer key unconfirmed — rests on 2 unverified claims.

2 An employer ignores the review report. What follows? Nothing — the review lapses if not pursued The employer's payroll account is closed The file is referred for audit automatically The deficiency may be assessed with interest, and penalties may apply

Answer key unconfirmed — rests on 3 unverified claims.

3 From when does interest run on a deficiency identified by a review? From the date of the review report From the date the information return was filed From the date the amounts should have been remitted From the response date given in the report

Answer key unconfirmed — rests on 1 unverified claim.

4 Which of these can legitimately explain figures that do not reconcile? Select all that apply.

Select all that apply.

An employee's age, since CPP contributions begin and cease by reference to it Employment where the employer and employee do not deal at arm's length, which may be excluded from insurable employment The employer having used a different payroll software package during the year An eligible employee having elected to stop contributing on the prescribed form The CPP basic exemption being applied per pay period, so the number of pay periods affects the total exemption Non-cash taxable benefits, which are generally pensionable but not insurable

Answer key unconfirmed — rests on 5 unverified claims.

5 The earnings figures reported on the slips were themselves wrong. Is paying the deficiency enough? No — the whole information return must be refiled No — responding also requires filing an amended slip Yes, provided the employer explains the discrepancy in writing Yes — payment resolves the review

Answer key unconfirmed — rests on 1 unverified claim.

6 An employee's CPP under-contribution is corrected following a review. What is the effect on the employee? None — the correction is between the employer and CRA Their contributions for the year increase, which affects their eventual CPP entitlement They owe the employer their portion of the correction Their income tax for the year is reassessed

Answer key unconfirmed — rests on 1 unverified claim.

Unanswered questions are marked wrong. There is no partial credit.