Reference no: EM132750987
Questions -
Q1. Macy's life insurance coverage through her employer's group plan is 2 times her annual salary of $33,000.00. Her employer pays the insurer 100% of the cost of her life insurance coverage at a premium rate of $2.00 per $1,000.00 of coverage per month. Calculate Macy's monthly taxable benefit.
a. $132.00
b. $66.00
c. $198.00
d. Coverage is not a taxable benefit
Q2. Square One Invitations has its head office in downtown Regina, Saskatchewan. The employees at this location have their $200.00 monthly parking fee, including taxes, paid for by the company. Calculate the bi-weekly parking taxable benefit for the employees.
a. $46.15
b. $433.33
c. $92.31
d. $100
Q3. Sally Chapel works for Adams Photography in Alberta and earns an annual salary of $53,500.00 paid on a bi-weekly basis. The company's benefit package includes monthly group term life insurance coverage of two time's annual salary; the group term life insurance premium rate is $0.74 per $1,000.00 of coverage. Sally receives a taxable car allowance of $25.00 every pay for using her own car to go to client appointments. Her federal and provincial TD1 claim codes are 3. Helen will not reach the Canada Pension Plan or Employment Insurance annual maximums this pay period. Calculate Helen's net pay.
Q4. Simone works for Successful Business Inc. in Québec and earns an annual salary of $30,500.00 paid on a semi-monthly basis. In addition to her regular salary, Simone's employer provides group term life insurance coverage through a third party of two times her annual salary. The monthly group term life insurance premiums are $0.48 per $1,000.00 of coverage, excluding taxes. Her employer also provides private health insurance benefits with a monthly premium of $260.00, excluding taxes. The tax on insurances in Québec is 9%. Her federal TD1 claim code is 2 and her provincial TP-1015.3-V deduction code is B. Simone will not reach the Québec Pension Plan, Employment Insurance or Québec Parental Insurance Plan annual maximums this pay period. Calculate the employee's net pay.
Q5. Claire Chen works for Gibson Catering in Alberta and is provided with a company owned automobile. The automobile was in Claire's possession for 365 days. Of the 46,629 kilometres driven, 24,143 kilometres were for business purposes. The purchase price of the vehicle was $28,760.00, excluding the GST calculated at 5%. Claire requested in writing that Gibson Catering use the optional operating cost method if all the conditions apply. She did not reimburse the company for any of the expenses associated with the automobile. Calculate the taxable benefit.
a. Taxable Benefit=$10,871.28
b. Taxable Benefit=$3,623.76
c. Taxable Benefit=$7,247.52
d. Taxable Benefit=$10,623.76
Q6. Joseph works for Northwest Gaskets in Alberta. He earns $33,800.00 per year and is paid biweekly. His TD1 federal and provincial claim codes are 3. In March 2019, Joseph receives a production bonus for meeting his 2018 targets. The bonus of $4,940.00 is paid separately from his regular pay. Calculate the income tax on Joseph's bonus payment.
a. Income tax on bonus = $1,291.37
b. Income tax on bonus = $1,054.37
c. Income tax on bonus = $1,154.40
d. Income tax on bonus = $1,223.73
Q7. Fred has worked for an advertising company in British Columbia since May 5, 1986. His employment was terminated on August 31, 2019, and he was paid a $47,000.00 retiring allowance. His company did not have a pension plan, a pension fund or a deferred profit sharing plan. Calculate the eligible portion of the retiring allowance based on Fred's service.
a. Eligible portion =$22,500.00
b. Eligible portion =$26,500.00
c. Eligible portion =$28,500.00
d. Eligible portion =$24,500.00
Q8. Jean-Claude is receiving a retroactive adjustment on his monthly pay due to paperwork being delayed. Jean-Claude's total retroactive adjustment is $832.40 that will be paid together on the same cheque with his new monthly salary of $3,221.24. Calculate JeanClaude's Québec Employment Insurance premium for this pay. He will not reach the annual maximum premium with this payment.
a. EI contribution for this pay = $59.13
b. EI contribution for this pay = $50.67
c. EI contribution for this pay = $69.19
d. EI contribution for this pay = $49.13
Q9. Fred's Québec employer gave him a stereo worth $300.00 including taxes as a Christmas gift. He also received a camera for his birthday worth $200.00 including taxes within the same year. What is the provincial taxable benefit?
a. $0.00
b. $200.00
c. $300.00
d. $400.00
Q10. Erica is a commissioned salesperson. Her commission plan pays her 5% on the first $25,000.00 in monthly sales, 7% on monthly sales of $25,000.01 to $80,000.00 and 10% on monthly sales in excess of $80,000.00. In May she sold $125,000.00 of products. Calculate Erica's commissions for May.
a. $9,600.00
b. $8,600.00
c. $10,600.00
d. $9,000.00
Q11. David Brown was dismissed from his job after working for the company for five years. On termination, he was paid his regular semi-monthly pay of $2,000.00, $440.00 outstanding vacation pay, $10,000.00 legislated wages in lieu of notice and $5,000.00 retiring allowance. Calculate the amount to be reported in Block 15B of the Record of Employment.
a. $29,440.00
b. $32,440.00
c. $36,440.00
d. $41,440.00
Q12. Calculate the Québec Parental Insurance Plan premium on a retiring allowance of $12,000.00 paid to an employee in Québec.
a. $244.85
b. $294.87
c. $325.90
d. Not subject to Quebec Parental Insurance Plan premiums
Q13. An error was made on Ivan's pay. Overtime of $143.00 is to be paid on a separate cheque from his regular weekly pay. Calculate the Canada Pension Plan contribution on the overtime payment.
a. $7.29
b. $72.90
c. $8.87
d. $88.70
Q14. The Government of Nunavut imposes a tax on employee's remuneration. What is the percentage of this tax?
a. 2%
b. 5%
c. 6.5%
d. 7%
Q15. How many weeks of insurable earnings are required to be reported in Block 15C for employers with a weekly pay frequency issuing paper Records of Employment?
a. 12
b. 24
c. 27
d. 53