Question

You have just joined the payroll department as the newest Payroll Administrator. Everyone else on the team has been there for a number of years, so the Payroll Manager is excited to have a fresh pair of eyes. The Payroll Manager has assigned the following task to you to help you become more familiar with the company.
She would like you to review all the pay codes set up in the payroll system to ensure the correct taxes are being applied.
Enter a Yes or No under each column to determine if it is taxable, pensionable and/or insurable. Each code will be worth 1 mark, there will be no partial marks awarded.
Pay Code   Tax   CPP   EI   Mark
Car allowances ($500 paid each month through payroll to eligible employees)               /1
Partial reimbursement of cell phone bills (employee owned phones used for business)               /1
Taxable benefits for company cars (non-job related vehicles)               /1
Gift valued at $300 awarded for work anniversary gifts               /1
Group term life insurance policies – employer-paid premiums – non-cash               /1
Meals – reimbursements for business travel               /1
Parking – scramble parking available to all staff               /1
Parking allowances ($200 paid each month to eligible employees)               /1
RRSP contributions – (no employer match, employees eligible to withdraw at any time)               /1
Training provided onsite for all employees on policy related issues               /1
Total marks               /10

Answer 1

Solution

Pay Code	Tax	CPP	EI	Mark
Car allowance ($ 500 paid each month through payroll to eligible employees)	YES	NO	NO	1
Partial reinbursement of cell phone bills (employee owned phones used for business)	NO	YES	NO	1
Taxable benefits for company cars (non-job related vehicles)	YES	NO	NO	1
Gift valued at $300 awarded for work anniversary gifts	YES	NO	YES	1
Group term life insurance policies - employer- paid premiums - non-cash	NO	YES	NO	1
Meals - Reimbersements for business travel	NO	YES	YES	1
Parking - scramble parking available to all staff	NO	NO	YES	1
parking allowance ($200 paid each month to eligible employees)	NO	NO	YES	1
RRSP contributions - (no employer match, employees eligible to withdraw at any time)	NO	YES	YES	1
training provided onsite for all employees on policy related issues	NO	NO	YES	1
Total Marks