You are the payroll administrator for Sunshine Delivery Services, a national private sector organization that has employees in Alberta, British Columbia, Ontario, Nova Scotia and Newfoundland and Labrador. The organization is exploring the possibility of opening an office in Montreal, Québec.
The payroll manager has asked you to research and explain the employer contributions that are required in Québec,
not
including those for the Québec Pension Plan and the Québec Parental Insurance Plan.
In your own words, prepare a memo explaining the Québec employer contributions required. In your memo provide the following information:
• the name of the contribution
• if it would apply to your organization
• how the contribution is calculated
• when and how the contribution is remitted
Ministry of Revenue for Quebec © The Canadian Payroll Association – Payroll Compliance Practitioner – Vs 7.0 1 Payroll Compliance Legislation Assignment No. 2 Student Name: ___________________________ CPA Member #: ___________________________ Date: ___________________________ Instructions 1. You should have completed Chapter 8: Québec Legislation before completing this assignment. Assignment questions are designed to test your comprehension of CPA course material and might not reflect working methods or conditions in an actual payroll office. Only use information from the course material to answer questions in this assignment. 2. Assignments should be completed in ink. Before handing in your assignment, make a photocopy for your records. 3. Answer each question in the space provided. If extra space is needed, continue your answer on the back of the question page. 4. For answers requiring calculations, show your work so that the marker can follow the method used. Set your calculator to three decimal places and round to two places. 5. Before handing in your assignment, complete the required information on this page and staple all the assignment sheets together. Put your name on each page in case pages become detached. Assignment 2 Assignment 2 Payroll Compliance Legislation © The Canadian Payroll Association – Payroll Compliance Practitioner – Vs 7.0 2 1. True or False – 10 marks (1 mark for each) 1) Minimum age legislation is governed by youth employment legislation in every jurisdiction. 2) Call-in pay provisions in Nunavut provide that a person who should receive call-in pay receives at least three hours of pay at their regular rate of pay. 3) In jurisdictions with both daily and weekly overtime thresholds, overtime will be paid on the hours worked beyond the daily or weekly overtime threshold, whichever is greater. 4) Family responsibility leave is legislated in all jurisdictions. 5) Québec is the most generous province in terms of the length of maternity/parental leave. 6) An employee going on maternity leave in Alberta must provide four (4) weeks notice. 7) Family Day is a legislated statutory holiday in Alberta, British Columbia and Ontario. 8) The following jurisdictions provide for two weeks of vacation time, with a one week increase after eight (8) consecutive years of service: New Brunswick, Nova Scotia and Prince Edward Island. 9) Sick leave is legislated in all jurisdictions. 10) Employers are allowed to provide electronic pay statements in all jurisdictions as long as access and confidentiality exist and copies may be printed. Assignment 2 Payroll Compliance Legislation © The Canadian Payroll Association – Payroll Compliance Practitioner – Vs 7.0 3 2. List two types of remuneration that are not subject to the Newfoundland and Labrador Health and Post-Secondary Education Tax. (2 marks) 3. To which employers does the Manitoba Health and Post-Secondary Education Tax Levy apply? (2 marks) 4. What is the Commission des normes du travail contribution for an employee who earns $66,000.00 in 2013? (2 marks) Assignment 2 Payroll Compliance Legislation © The Canadian Payroll Association – Payroll Compliance Practitioner – Vs 7.0 4 5. An employee receives a quarterly bonus of $12,500.00 paid separately from her regular earnings. Calculate the Québec Pension Plan contribution to deduct from this payment assuming she has already been deducted $550.00 in contributions year-to-date. (2 marks) 6. Explain how Revenu Québec and the Canada Revenue Agency treat the deductibility of union dues from an employee’s pay. (2 marks) 7. When an individual is having their employment terminated, an employer must give a period of working notice or pay wages in lieu of notice. On what two criteria will the length of the notice period depend? (2 marks) Assignment 2 Payroll Compliance Legislation © The Canadian Payroll Association – Payroll Compliance Practitioner – Vs 7.0 5 8. Answer the following questions about the Manitoba Health and Post-Secondary Education Tax Levy. (3 marks) a) What is the Levy rate for an organization with a gross annual payroll of $3,750,000.00? b) What is the tax calculated on (be specific)? c) Who pays the tax? 9. Indicate in the chart below which of the following funding methods is used by the jurisdiction listed. (4 marks) a) health care tax or levy b) health care premiums c) neither JURISDICTION FUNDING METHOD British Columbia Newfoundland and Labrador Alberta Québec Assignment 2 Payroll Compliance Legislation © The Canadian Payroll Association – Payroll Compliance Practitioner – Vs 7.0 6 10. In the following chart, list the appropriate amount of written working notice or wages in lieu of notice an individual employee would be entitled to on termination of employment. (6 marks) JURISDICTION LENGTH OF SERVICE NOTICE REQUIREMENT Manitoba 25 days British Columbia 3 years, 5 months Nova Scotia 5 years, 6 months New Brunswick 6 months Newfoundland and Labrador 7 years, 1 month Yukon 7 years, 1 month Assignment 2 Payroll Compliance Legislation © The Canadian Payroll Association – Payroll Compliance Practitioner – Vs 7.0 7 11. For the following employee, calculate the amounts indicated showing all calculations. (6 marks) Province of Employment Prince Edward Island Employer Festival Works Inc. Pay Frequency Weekly Pay period ending date Oct. 18, 2013 Employee Data: Name Emily Jones Position Driver Birth Date October 24, 1983 Pay Rate $23.00 per hour TD1 Claim Code 1 Year-to-date Canada Pension Plan contributions $2,302.40 Year-to-date Employment Insurance premiums $867.07 Other Information: For this pay period Emily worked 40.00 hours of straight time and 12.00 hours of overtime at time and one half of her regular pay rate. Emily has no taxable benefits. a) Calculate Emily’s gross earnings. 9 Assignment 2 Payroll Compliance Legislation © The Canadian Payroll Association – Payroll Compliance Practitioner – Vs 7.0 8 b) Calculate Emily’s Canada Pension Plan (CPP) contributions and Employment Insurance (EI) premiums. 12. The following tables list the hours worked by an employee in two provincial jurisdictions over the period of a month. There are no compressed work week rules or averaging hours agreements in place. Complete the last three columns of the tables. (8 marks) HOURS WORKED IN A MONTH BY AN EMPLOYEE IN MANITOBA TOTAL HOURS WORKED REGULAR HOURS OVERTIME HOURS S M T W T F S 10 10 10 8 0 0 8 8 8 8 8 6 10 10 10 0 10 10 8 8 8 8 8 8 Assignment 2 Payroll Compliance Legislation © The Canadian Payroll Association – Payroll Compliance Practitioner – Vs 7.0 9 13. You are the Payroll Manager for a large manufacturing company that has a unionized workforce. The company is entering the collective agreement negotiating process and you would like to participate on the negotiating team. Prepare a memo to the Controller, Paula Renaud, explaining in your own words the advantages of having payroll involved in the negotiating process, both from the employer’s perspective and the Payroll Manager’s perspective. (12 marks) HOURS WORKED IN A MONTH BY AN EMPLOYEE IN ALBERTA TOTAL HOURS WORKED REGULAR HOURS OVERTIME HOURS S M T W T F S 10 10 10 8 0 0 8 8 8 8 8 6 10 10 10 0 10 10 8 8 8 8 8 8 Assignment 2 Payroll Compliance Legislation © The Canadian Payroll Association – Payroll Compliance Practitioner – Vs 7.0 10 Assignment 2 Payroll Compliance Legislation © The Canadian Payroll Association – Payroll Compliance Practitioner – Vs 7.0 11 Assignment 2 Payroll Compliance Legislation © The Canadian Payroll Association – Payroll Compliance Practitioner – Vs 7.0 12 14. Your organization has employees in the following provinces: Manitoba Québec Saskatchewan Yukon The organization is planning to implement a national policy with respect to bereavement leave that provides the same benefits to all employees, regardless of their province of employment and length of employment. (12 marks) a) List four specific items relating to bereavement leave that will have to be addressed in the policy to ensure compliance with the standards in each jurisdiction. (4 marks) b) What recommendations would you make to the Human Resources Manager on how to address each of the issues you have identified above in the policy? Please explain your reasoning. (8 marks) Assignment 2 Payroll Compliance Legislation © The Canadian Payroll Association – Payroll Compliance Practitioner – Vs 7.0 13 Assignment 2 Payroll Compliance Legislation © The Canadian Payroll Association – Payroll Compliance Practitioner – Vs 7.0 14 15. For the following employee, calculate the requested amounts, showing all calculations. (12 marks) Province of Employment Québec Employer Westmount Seniors Drop-in Pay Frequency Bi-weekly Pay period ending date May 10, 2013 Employee Data: Name Robert Descharmes Position Events Co-ordinator Birth Date June 29, 1953 Pay Rate $26.50 per hour TD1 Claim Code 1 TP-1015.3-V Deduction Code A Year-to-date Québec Pension Plan contributions $744.00 Year-to-date Employment Insurance premiums Year-to-date Québec Parental Insurance Plan premiums $247.55 $ 67.31 Other Information: For this pay period Robert worked 75.00 hours of straight time, 5.00 hours of overtime at time and one half of his regular pay rate and 4.00 hours at double his regular pay rate. Robert pays $20.00 per pay in union dues. 9 Assignment 2