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Quiz: What must be withheld

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1 A caller asks what this year's CPP contribution rate and maximum pensionable earnings are. What is the right handling? Quote the figures from the guide you last read Take both from CRA's published figures for the year, since the rate and every ceiling are set annually Refer the caller to their payroll software vendor Explain that the rate is fixed in the Canada Pension Plan and does not change

Answer key unconfirmed — rests on 4 unverified claims.

2 Which of these correctly describe how the employer's share compares with the employee's? Select all that apply.

Select all that apply.

The employer's EI premium is a multiple of the employee's rather than an equal match The employer matches the employee's CPP contribution The employer matches the employee's EI premium The employer's CPP contribution is a multiple of the employee's

Answer key unconfirmed — rests on 3 unverified claims.

3 Is there a basic exemption for EI premiums, as there is for CPP? Yes, set annually alongside the CPP basic exemption Yes, applied annually rather than per pay period Yes, but only for employees under a specified age No — there is no EI equivalent of the CPP basic exemption

Answer key unconfirmed — rests on 1 unverified claim.

4 An employee aged 67 who is receiving a CPP retirement pension asks whether he must keep contributing. An employee aged 65 to 70 receiving a CPP retirement pension may elect on the prescribed form to stop contributing He must continue contributing until he turns 70 Contributions ceased automatically when he began receiving the pension He may stop contributing at his own discretion without notifying anyone

Answer key unconfirmed — rests on 2 unverified claims.

5 An employee lives in Ontario and reports for work at the employer's Manitoba establishment. Which province governs withholding? Manitoba — the province of employment is determined by the employer's establishment at which the employee reports for work Ontario, the employee's province of residence Whichever the employee elects on the TD1 Both, apportioned by days worked

Answer key unconfirmed — rests on 1 unverified claim.

6 An employee asks the employer to withhold less income tax than the tables produce, because he has large deductions coming. The employer may reduce it on the employee's written request The employer may reduce it if the employee files a revised TD1 No reduction is possible in any circumstances A reduction below the calculated amount requires authorisation from CRA and cannot be granted by the employer

Answer key unconfirmed — rests on 2 unverified claims.

7 Which of these employments have a special CPP or EI position? Select all that apply.

Select all that apply.

Employment by a corporation controlled by a person related to the employee is generally not insurable for EI Employment of a household worker is exempt from both CPP and EI Employment in Quebec is subject to the Quebec Pension Plan rather than the CPP Part-time employment is exempt from EI premiums

Answer key unconfirmed — rests on 2 unverified claims.

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