intro

docs/build/html/_sources/introduction.rst.txt

@@ -1,27 +1,178 @@
-############
+####################################
-INTRODUCTION
+INTRODUCTION TO CANADIAN PAYROLL
-############
+####################################
 
-Outcomes
+Payroll is a necessary function in every organization that has employees, 
-========
+as each employee expects to be paid for the work they perform. While the 
+amount of maximum remuneration that an employee receives for their work is 
+not legislated by any government (unless the employee is a federal or 
+provincial/territorial civil servant), there is legislation in place at
+both the federal and provincial/territorial levels that governs many 
+aspects of processing employees' pay, their taxable benefits and observing 
+their rights as employees.
 
-Applying federal and provincial payroll legislation, regulations, and policies to ensure compliance with the legal framework governing payroll in Canada.
+t is important to note that this course deals with payroll, the function of paying employees
+for work performed for employers. Self-employed workers or contractors, who submit
+invoices for the work they perform and receive payment through accounts payable and not
+payroll, are not employees.
 
-  - CPP/QPP
+Both the federal and the Québec governments provide factors that can be used to determine
-  - EI
+whether an employee-employer relationship exists. It is crucial to know how to determine the
-  - Income Tax (Federal, ON and QC)
+type of relationship that exists between the worker and the organization and to ensure that
+any payments made comply with legislation.
 
-Calculating regular individual pay
+Payroll Objectives and Definitions
+------------------------------------
 
-Calculating non-regular individual pay
+The **primary objective of the payroll function** in every organization is to 
+pay employees accurately and on time, in compliance with legislative 
+requirements, for a full annual payroll cycle.
 
-Calculating termination pay
+Every employee expects to receive their pay on the day it is due in the 
+manner arranged with their employer, either by cheque or direct deposit. 
+In addition to ensuring that employees have been paid, payroll 
+practitioners must also be able to communicate payroll information to
+all stakeholders.
 
-Completing a Record of Employment (ROE)
+- **Payroll** is the process of paying employees in exchange for the services 
+they perform.
 
-***********************
+- **Legislation** refers to laws enacted by a legislative body. In Canada 
-Payroll Legal Framework
+there are many legislative sources that payroll practitioners must comply 
-***********************
+with at two separate levels ─ the federal and the provincial/territorial 
+governments. Later in the chapter we will explore the compliance
+requirements for the various pieces of legislation from these sources.
 
-The Canadian Payroll Administration system is designed to ensure compliance with the legal framework governing payroll in Canada. This includes adherence to federal and provincial regulations regarding employee compensation, deductions, and reporting requirements.
+- **Compliance** is the observance of official requirements. For payroll 
-The system is built to handle various payroll scenarios, including different employment types, tax calculations, and benefit deductions, while ensuring that all transactions are accurately recorded and reported in accordance with the law.
+practitioners, this means performing payroll functions according to 
+federal and provincial/territorial legislative and non-governmental 
+stakeholder requirements.
+
+The legislative requirements are termed **statutory**. This means they are 
+enacted, created, or regulated by statute, a law enacted by the legislative 
+branch of a government. Fines and penalties can be imposed if an organization 
+is not in compliance with the legislative requirements in each jurisdiction.
+
+When dealing with federal and provincial/territorial government agencies, 
+payroll administrator must know the many pieces of legislation that 
+regulate their work and the compliance requirements associated with each. 
+Payroll administrators are responsible for ensuring their organization is 
+compliant with all payroll related legislation, thus eliminating the 
+potential for any fines or penalties.
+
+In payroll, there are also compliance requirements from other non-government stakeholders,
+for example, union collective agreements or group insurance policies. Payroll administrator
+must therefore ensure the organization is compliant with all stakeholder requirements.
+
+The responsibilities of the payroll administrator will differ depending on 
+the size of the organization, the number of jurisdictions in which they pay, 
+the reporting structure under which they work, and whether there are other 
+related departments, such as human resources, finance and administration in 
+the organization.
+
+Small and medium-sized organizations may have payroll administrators whose 
+positions include other functions that, in a larger organization, would 
+fall under other departments. This payroll practitioner may be required to 
+handle multiple tasks, such as employee recruitment, human resource policy 
+development, benefits administration, accounts payable, accounts receivable, 
+budgets and/or administration. 
+
+Larger organizations may have a distinct payroll department with specific 
+payroll positions, in addition to separate human resources, accounting and 
+administration groups. Even in a multi-departmental organization, payroll 
+administrators must have knowledge of the various stages of the life cycle 
+of an employee. From hiring through termination of employment, many of 
+these stages will impact how to produce the employee's pay and prepare 
+required reports.
+
+The payroll department in a large organization may have:
+  - payroll administrators who are responsible for entering payroll data into the system
+and making required payroll remittances
+  - payroll coordinators who are responsible for preparing the payroll journal entries and
+reconciling the payroll related accounts
+  - payroll managers who manage the payroll function, the payroll staff and represent
+payroll at the management level
+
+Payroll Content Knowledge
+--------------------------
+
+Payroll administrators should know the following to effectively perform 
+their duties:
+  - **Payroll Compliance Legislation:** the Income Tax Act, the Employment 
+  Insurance Act, the Canada Pension Plan Act, Employment/Labour Standards, 
+  privacy legislation, Workers' Compensation and provincial/territorial 
+  payroll-specific legislation
+  - **Payroll Processes**: the remuneration and deduction components of 
+  payroll and how to use these components to calculate a net pay in both 
+  regular and non-regular circumstances
+  - **Payroll Reporting**: how to calculate and remit amounts due to 
+  government agencies, insurance companies, unions and other third parties. 
+  In addition, payroll reporting includes accounting for payroll expenses 
+  and accruals to internal financial systems and federal and 
+  provincial/territorial year-end reporting.
+
+Technical Skills
+----------------
+
+The technical skills required by payroll professionals include proficiency in 
+computer programs such as payroll software and financial systems, 
+spreadsheets, databases and word processing.
+
+Organizations often change their payroll and business systems to meet new 
+technology requirements and corporate reporting needs. It is important for 
+payroll personnel to have the ability to be adaptable to changing systems. 
+As a payroll practitioner, you must be prepared and willing to embrace 
+continuous learning.
+
+Personal and Professional Skills
+----------------------------------------
+
+The following personal and professional skills will assist payroll 
+administrators in dealing with the various stakeholders involved in the 
+payroll process:
+  - written communication skills, such as preparing employee emails and 
+  memos, management reports, policies and procedures and correspondence 
+  with various levels of government
+  - verbal communication skills, to be able to respond to internal and 
+  external stakeholder inquiries
+  - the ability to read, understand and interpret legal terminology found 
+  in documents such as collective agreements, benefit contracts and 
+  government regulations
+  - excellent mathematical skills to perform various calculations
+  - problem solving, decision-making, time management and organizational skills
+
+Behavioural and Ethical Standards
+----------------------------------
+
+Behaviour and ethics are two areas that build on the skills that an effective payroll practitioner
+must have. Effective payroll professionals should be:
+  - trustworthy, as the potential for fraud is ever present
+  - conscientious, with a keen attention to detail
+  - discreet, due to the confidential nature of information being handled
+  - tactful in dealing with employees who can be very sensitive when 
+  discussing their financial issues
+  - perceptive, able to understand all sides of an issue
+  - able to work under the pressures of absolute deadlines
+  - able to use common sense in order to recognize problems quickly and 
+  apply sound solutions
+  - able to remain objective and maintain a factual perspective when 
+  dealing with questions and inquiries
+
+Content Review
+-----------------
+
+  - The primary objective of the payroll function in every organization is to pay
+employees accurately and on time, in compliance with legislative requirements, for a
+full annual payroll cycle.
+
+  - Payroll is the process of paying employees in exchange for the services they perform.
+  - Legislation refers to laws enacted by a legislative body.
+  - Compliance is the observance of official requirements.
+  - Payroll practitioner knowledge consists of information on payroll compliance
+legislation, payroll processes and payroll reporting as well as technical, personal and
+professional skills.
+
+Review Questions
+-----------------
+
+1. What is the primary objective of the payroll department?

docs/build/html/introduction.html

@@ -5,7 +5,7 @@
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-    <title>2. INTRODUCTION &#8212; 🍁 Payroll Administration Fall 2025 documentation</title>
+    <title>INTRODUCTION TO CANADIAN PAYROLL &#8212; 🍁 Payroll Administration Fall 2025 documentation</title>
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@@ -24,14 +22,8 @@
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              accesskey="I">index</a></li>
-        <li class="right" >
-          <a href="payroll_accounting.html" title="3. Payroll Accounting"
-             accesskey="N">next</a> |</li>
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-        <li class="nav-item nav-item-this"><a href=""><span class="section-number">2. </span>INTRODUCTION</a></li> 
+        <li class="nav-item nav-item-this"><a href="">INTRODUCTION TO CANADIAN PAYROLL</a></li> 
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@@ -40,27 +32,195 @@
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-  <section id="introduction">
+  <section id="introduction-to-canadian-payroll">
-<h1><span class="section-number">2. </span>INTRODUCTION<a class="headerlink" href="#introduction" title="Link to this heading">¶</a></h1>
+<h1>INTRODUCTION TO CANADIAN PAYROLL<a class="headerlink" href="#introduction-to-canadian-payroll" title="Link to this heading">¶</a></h1>
-<section id="outcomes">
+<p>Payroll is a necessary function in every organization that has employees,
-<h2><span class="section-number">2.1. </span>Outcomes<a class="headerlink" href="#outcomes" title="Link to this heading">¶</a></h2>
+as each employee expects to be paid for the work they perform. While the
-<p>Applying federal and provincial payroll legislation, regulations, and policies to ensure compliance with the legal framework governing payroll in Canada.</p>
+amount of maximum remuneration that an employee receives for their work is
+not legislated by any government (unless the employee is a federal or
+provincial/territorial civil servant), there is legislation in place at
+both the federal and provincial/territorial levels that governs many
+aspects of processing employees’ pay, their taxable benefits and observing
+their rights as employees.</p>
+<p>t is important to note that this course deals with payroll, the function of paying employees
+for work performed for employers. Self-employed workers or contractors, who submit
+invoices for the work they perform and receive payment through accounts payable and not
+payroll, are not employees.</p>
+<p>Both the federal and the Québec governments provide factors that can be used to determine
+whether an employee-employer relationship exists. It is crucial to know how to determine the
+type of relationship that exists between the worker and the organization and to ensure that
+any payments made comply with legislation.</p>
+<section id="payroll-objectives-and-definitions">
+<h2>Payroll Objectives and Definitions<a class="headerlink" href="#payroll-objectives-and-definitions" title="Link to this heading">¶</a></h2>
+<p>The <strong>primary objective of the payroll function</strong> in every organization is to
+pay employees accurately and on time, in compliance with legislative
+requirements, for a full annual payroll cycle.</p>
+<p>Every employee expects to receive their pay on the day it is due in the
+manner arranged with their employer, either by cheque or direct deposit.
+In addition to ensuring that employees have been paid, payroll
+practitioners must also be able to communicate payroll information to
+all stakeholders.</p>
+<ul class="simple">
+<li><p><strong>Payroll</strong> is the process of paying employees in exchange for the services</p></li>
+</ul>
+<p>they perform.</p>
+<ul class="simple">
+<li><p><strong>Legislation</strong> refers to laws enacted by a legislative body. In Canada</p></li>
+</ul>
+<p>there are many legislative sources that payroll practitioners must comply
+with at two separate levels ─ the federal and the provincial/territorial
+governments. Later in the chapter we will explore the compliance
+requirements for the various pieces of legislation from these sources.</p>
+<ul class="simple">
+<li><p><strong>Compliance</strong> is the observance of official requirements. For payroll</p></li>
+</ul>
+<p>practitioners, this means performing payroll functions according to
+federal and provincial/territorial legislative and non-governmental
+stakeholder requirements.</p>
+<p>The legislative requirements are termed <strong>statutory</strong>. This means they are
+enacted, created, or regulated by statute, a law enacted by the legislative
+branch of a government. Fines and penalties can be imposed if an organization
+is not in compliance with the legislative requirements in each jurisdiction.</p>
+<p>When dealing with federal and provincial/territorial government agencies,
+payroll administrator must know the many pieces of legislation that
+regulate their work and the compliance requirements associated with each.
+Payroll administrators are responsible for ensuring their organization is
+compliant with all payroll related legislation, thus eliminating the
+potential for any fines or penalties.</p>
+<p>In payroll, there are also compliance requirements from other non-government stakeholders,
+for example, union collective agreements or group insurance policies. Payroll administrator
+must therefore ensure the organization is compliant with all stakeholder requirements.</p>
+<p>The responsibilities of the payroll administrator will differ depending on
+the size of the organization, the number of jurisdictions in which they pay,
+the reporting structure under which they work, and whether there are other
+related departments, such as human resources, finance and administration in
+the organization.</p>
+<p>Small and medium-sized organizations may have payroll administrators whose
+positions include other functions that, in a larger organization, would
+fall under other departments. This payroll practitioner may be required to
+handle multiple tasks, such as employee recruitment, human resource policy
+development, benefits administration, accounts payable, accounts receivable,
+budgets and/or administration.</p>
+<p>Larger organizations may have a distinct payroll department with specific
+payroll positions, in addition to separate human resources, accounting and
+administration groups. Even in a multi-departmental organization, payroll
+administrators must have knowledge of the various stages of the life cycle
+of an employee. From hiring through termination of employment, many of
+these stages will impact how to produce the employee’s pay and prepare
+required reports.</p>
+<dl class="simple">
+<dt>The payroll department in a large organization may have:</dt><dd><ul class="simple">
+<li><p>payroll administrators who are responsible for entering payroll data into the system</p></li>
+</ul>
+</dd>
+<dt>and making required payroll remittances</dt><dd><ul class="simple">
+<li><p>payroll coordinators who are responsible for preparing the payroll journal entries and</p></li>
+</ul>
+</dd>
+<dt>reconciling the payroll related accounts</dt><dd><ul class="simple">
+<li><p>payroll managers who manage the payroll function, the payroll staff and represent</p></li>
+</ul>
+</dd>
+</dl>
+<p>payroll at the management level</p>
+</section>
+<section id="payroll-content-knowledge">
+<h2>Payroll Content Knowledge<a class="headerlink" href="#payroll-content-knowledge" title="Link to this heading">¶</a></h2>
+<p>Payroll administrators should know the following to effectively perform
+their duties:</p>
 <blockquote>
 <div><ul class="simple">
-<li><p>CPP/QPP</p></li>
+<li><p><strong>Payroll Compliance Legislation:</strong> the Income Tax Act, the Employment</p></li>
-<li><p>EI</p></li>
+</ul>
-<li><p>Income Tax (Federal, ON and QC)</p></li>
+<p>Insurance Act, the Canada Pension Plan Act, Employment/Labour Standards,
+privacy legislation, Workers’ Compensation and provincial/territorial
+payroll-specific legislation
+- <strong>Payroll Processes</strong>: the remuneration and deduction components of
+payroll and how to use these components to calculate a net pay in both
+regular and non-regular circumstances
+- <strong>Payroll Reporting</strong>: how to calculate and remit amounts due to
+government agencies, insurance companies, unions and other third parties.
+In addition, payroll reporting includes accounting for payroll expenses
+and accruals to internal financial systems and federal and
+provincial/territorial year-end reporting.</p>
+</div></blockquote>
+</section>
+<section id="technical-skills">
+<h2>Technical Skills<a class="headerlink" href="#technical-skills" title="Link to this heading">¶</a></h2>
+<p>The technical skills required by payroll professionals include proficiency in
+computer programs such as payroll software and financial systems,
+spreadsheets, databases and word processing.</p>
+<p>Organizations often change their payroll and business systems to meet new
+technology requirements and corporate reporting needs. It is important for
+payroll personnel to have the ability to be adaptable to changing systems.
+As a payroll practitioner, you must be prepared and willing to embrace
+continuous learning.</p>
+</section>
+<section id="personal-and-professional-skills">
+<h2>Personal and Professional Skills<a class="headerlink" href="#personal-and-professional-skills" title="Link to this heading">¶</a></h2>
+<p>The following personal and professional skills will assist payroll
+administrators in dealing with the various stakeholders involved in the
+payroll process:</p>
+<blockquote>
+<div><ul class="simple">
+<li><p>written communication skills, such as preparing employee emails and</p></li>
+</ul>
+<p>memos, management reports, policies and procedures and correspondence
+with various levels of government
+- verbal communication skills, to be able to respond to internal and
+external stakeholder inquiries
+- the ability to read, understand and interpret legal terminology found
+in documents such as collective agreements, benefit contracts and
+government regulations
+- excellent mathematical skills to perform various calculations
+- problem solving, decision-making, time management and organizational skills</p>
+</div></blockquote>
+</section>
+<section id="behavioural-and-ethical-standards">
+<h2>Behavioural and Ethical Standards<a class="headerlink" href="#behavioural-and-ethical-standards" title="Link to this heading">¶</a></h2>
+<p>Behaviour and ethics are two areas that build on the skills that an effective payroll practitioner
+must have. Effective payroll professionals should be:</p>
+<blockquote>
+<div><ul class="simple">
+<li><p>trustworthy, as the potential for fraud is ever present</p></li>
+<li><p>conscientious, with a keen attention to detail</p></li>
+<li><p>discreet, due to the confidential nature of information being handled</p></li>
+<li><p>tactful in dealing with employees who can be very sensitive when</p></li>
+</ul>
+<p>discussing their financial issues
+- perceptive, able to understand all sides of an issue
+- able to work under the pressures of absolute deadlines
+- able to use common sense in order to recognize problems quickly and
+apply sound solutions
+- able to remain objective and maintain a factual perspective when
+dealing with questions and inquiries</p>
+</div></blockquote>
+</section>
+<section id="content-review">
+<h2>Content Review<a class="headerlink" href="#content-review" title="Link to this heading">¶</a></h2>
+<blockquote>
+<div><ul class="simple">
+<li><p>The primary objective of the payroll function in every organization is to pay</p></li>
 </ul>
 </div></blockquote>
-<p>Calculating regular individual pay</p>
+<p>employees accurately and on time, in compliance with legislative requirements, for a
-<p>Calculating non-regular individual pay</p>
+full annual payroll cycle.</p>
-<p>Calculating termination pay</p>
+<blockquote>
-<p>Completing a Record of Employment (ROE)</p>
+<div><ul class="simple">
-<section id="payroll-legal-framework">
+<li><p>Payroll is the process of paying employees in exchange for the services they perform.</p></li>
-<h3><span class="section-number">2.1.1. </span>Payroll Legal Framework<a class="headerlink" href="#payroll-legal-framework" title="Link to this heading">¶</a></h3>
+<li><p>Legislation refers to laws enacted by a legislative body.</p></li>
-<p>The Canadian Payroll Administration system is designed to ensure compliance with the legal framework governing payroll in Canada. This includes adherence to federal and provincial regulations regarding employee compensation, deductions, and reporting requirements.
+<li><p>Compliance is the observance of official requirements.</p></li>
-The system is built to handle various payroll scenarios, including different employment types, tax calculations, and benefit deductions, while ensuring that all transactions are accurately recorded and reported in accordance with the law.</p>
+<li><p>Payroll practitioner knowledge consists of information on payroll compliance</p></li>
+</ul>
+</div></blockquote>
+<p>legislation, payroll processes and payroll reporting as well as technical, personal and
+professional skills.</p>
 </section>
+<section id="review-questions">
+<h2>Review Questions<a class="headerlink" href="#review-questions" title="Link to this heading">¶</a></h2>
+<ol class="arabic simple">
+<li><p>What is the primary objective of the payroll department?</p></li>
+</ol>
 </section>
 </section>
 
@@ -74,26 +234,19 @@ The system is built to handle various payroll scenarios, including different emp
   <div>
     <h3><a href="index.html">Table of Contents</a></h3>
     <ul>
-<li><a class="reference internal" href="#">2. INTRODUCTION</a><ul>
+<li><a class="reference internal" href="#">INTRODUCTION TO CANADIAN PAYROLL</a><ul>
-<li><a class="reference internal" href="#outcomes">2.1. Outcomes</a><ul>
+<li><a class="reference internal" href="#payroll-objectives-and-definitions">Payroll Objectives and Definitions</a></li>
-<li><a class="reference internal" href="#payroll-legal-framework">2.1.1. Payroll Legal Framework</a></li>
+<li><a class="reference internal" href="#payroll-content-knowledge">Payroll Content Knowledge</a></li>
-</ul>
+<li><a class="reference internal" href="#technical-skills">Technical Skills</a></li>
-</li>
+<li><a class="reference internal" href="#personal-and-professional-skills">Personal and Professional Skills</a></li>
+<li><a class="reference internal" href="#behavioural-and-ethical-standards">Behavioural and Ethical Standards</a></li>
+<li><a class="reference internal" href="#content-review">Content Review</a></li>
+<li><a class="reference internal" href="#review-questions">Review Questions</a></li>
 </ul>
 </li>
 </ul>
 
   </div>
-  <div>
-    <h4>Previous topic</h4>
-    <p class="topless"><a href="preface.html"
-                          title="previous chapter"><span class="section-number">1. </span>PREFACE</a></p>
-  </div>
-  <div>
-    <h4>Next topic</h4>
-    <p class="topless"><a href="payroll_accounting.html"
-                          title="next chapter"><span class="section-number">3. </span>Payroll Accounting</a></p>
-  </div>
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     <ul class="this-page-menu">
@@ -121,14 +274,8 @@ The system is built to handle various payroll scenarios, including different emp
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              >index</a></li>
-        <li class="right" >
-          <a href="payroll_accounting.html" title="3. Payroll Accounting"
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         <li class="nav-item nav-item-0"><a href="index.html">🍁 Payroll Administration Fall 2025 documentation</a> &#187;</li>
-        <li class="nav-item nav-item-this"><a href=""><span class="section-number">2. </span>INTRODUCTION</a></li> 
+        <li class="nav-item nav-item-this"><a href="">INTRODUCTION TO CANADIAN PAYROLL</a></li> 
       </ul>
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