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@@ -16,7 +16,7 @@
<link rel="index" title="Index" href="genindex.html" />
<link rel="search" title="Search" href="search.html" />
<link rel="next" title="2. PAYROLL COMPLIANCE" href="2_compliance.html" />
<link rel="prev" title="ABOUT THE AUTHOR" href="index.html" />
<link rel="prev" title="Glossary" href="index.html" />
</head><body>
<div class="related" role="navigation" aria-label="Related">
<h3>Navigation</h3>
@@ -28,7 +28,7 @@
<a href="2_compliance.html" title="2. PAYROLL COMPLIANCE"
accesskey="N">next</a> |</li>
<li class="right" >
<a href="index.html" title="ABOUT THE AUTHOR"
<a href="index.html" title="Glossary"
accesskey="P">previous</a> |</li>
<li class="nav-item nav-item-0"><a href="index.html">🍁 Payroll Administration Fall 2025 (v25.08.23) documentation</a> &#187;</li>
<li class="nav-item nav-item-this"><a href=""><span class="section-number">1. </span>INTRODUCTION TO CANADIAN PAYROLL</a></li>
@@ -50,7 +50,7 @@ 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
<p>It 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>
@@ -123,8 +123,8 @@ required reports.</p>
</div></blockquote>
<section id="legislation-vs-regulation">
<h3><span class="section-number">1.1.1. </span>Legislation vs. regulation<a class="headerlink" href="#legislation-vs-regulation" title="Link to this heading"></a></h3>
<p><strong>The legislation</strong> specifies the __requirements__.</p>
<p><strong>The regulation</strong> specifies the __methods__ of applying the legislation.</p>
<p><strong>The legislation</strong> specifies the <em>requirements</em>.</p>
<p><strong>The regulation</strong> specifies the <em>methods</em> of applying the legislation.</p>
</section>
<section id="payroll-content-knowledge">
<h3><span class="section-number">1.1.2. </span>Payroll Content Knowledge<a class="headerlink" href="#payroll-content-knowledge" title="Link to this heading"></a></h3>
@@ -418,7 +418,7 @@ efficiently.</p>
<div>
<h4>Previous topic</h4>
<p class="topless"><a href="index.html"
title="previous chapter">ABOUT THE AUTHOR</a></p>
title="previous chapter">Glossary</a></p>
</div>
<div>
<h4>Next topic</h4>
@@ -456,7 +456,7 @@ efficiently.</p>
<a href="2_compliance.html" title="2. PAYROLL COMPLIANCE"
>next</a> |</li>
<li class="right" >
<a href="index.html" title="ABOUT THE AUTHOR"
<a href="index.html" title="Glossary"
>previous</a> |</li>
<li class="nav-item nav-item-0"><a href="index.html">🍁 Payroll Administration Fall 2025 (v25.08.23) documentation</a> &#187;</li>
<li class="nav-item nav-item-this"><a href=""><span class="section-number">1. </span>INTRODUCTION TO CANADIAN PAYROLL</a></li>

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@@ -11,7 +11,7 @@ both the federal and provincial/territorial levels that governs many
aspects of processing employees' pay, their taxable benefits and observing
their rights as employees.
t is important to note that this course deals with payroll, the function of paying employees
It 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.
@@ -95,9 +95,9 @@ The payroll department in a large organization may have:
Legislation vs. regulation
~~~~~~~~~~~~~~~~~~~~~~~~~~~
**The legislation** specifies the __requirements__.
**The legislation** specifies the *requirements*.
**The regulation** specifies the __methods__ of applying the legislation.
**The regulation** specifies the *methods* of applying the legislation.
Payroll Content Knowledge
~~~~~~~~~~~~~~~~~~~~~~~~~~~

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Chapter 1.
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\babel@toc {english}{}\relax
\contentsline {chapter}{\numberline {1}PREFACE}{3}{chapter.1}%
\contentsline {chapter}{\numberline {2}PAYROLL COMPLIANCE AND REGULATIONS}{5}{chapter.2}%
\contentsline {section}{\numberline {2.1}Introduction}{5}{section.2.1}%
\contentsline {section}{\numberline {2.2}Payroll Objectives}{6}{section.2.2}%
\contentsline {section}{\numberline {2.3}Responsibilities and Functions of Payroll}{6}{section.2.3}%
\contentsline {section}{\numberline {2.4}Payroll Stakeholders}{8}{section.2.4}%
\contentsline {subsection}{\numberline {2.4.1}Government Stakeholders}{8}{subsection.2.4.1}%
\contentsline {subsection}{\numberline {2.4.2}Federal Government}{9}{subsection.2.4.2}%
\contentsline {subsection}{\numberline {2.4.3}Provincial/Territorial Governments}{9}{subsection.2.4.3}%
\contentsline {subsection}{\numberline {2.4.4}Internal Stakeholders}{10}{subsection.2.4.4}%
\contentsline {subsection}{\numberline {2.4.5}External Stakeholders}{10}{subsection.2.4.5}%
\contentsline {section}{\numberline {2.5}Legislations and Regulations}{11}{section.2.5}%
\contentsline {subsection}{\numberline {2.5.1}Legislative Compliance}{12}{subsection.2.5.1}%
\contentsline {subsection}{\numberline {2.5.2}Self\sphinxhyphen {}Assessment}{13}{subsection.2.5.2}%
\contentsline {section}{\numberline {2.6}The Employee\sphinxhyphen {}Employer Relationship}{13}{section.2.6}%
\contentsline {subsection}{\numberline {2.6.1}Contract of Service (Employment)}{13}{subsection.2.6.1}%
\contentsline {subsection}{\numberline {2.6.2}Contract for Service (Subcontracting)}{14}{subsection.2.6.2}%
\contentsline {subsection}{\numberline {2.6.3}Factors Determining the Type of Contract}{14}{subsection.2.6.3}%
\contentsline {section}{\numberline {2.7}Review Summary}{18}{section.2.7}%
\contentsline {section}{\numberline {2.8}Review Questions}{19}{section.2.8}%
\contentsline {chapter}{\numberline {3}Canada Pension Plan}{23}{chapter.3}%
\contentsline {section}{\numberline {3.1}Who Must Contribute to the Canada Pension Plan}{24}{section.3.1}%
\contentsline {chapter}{\numberline {4}Employment Insurance}{25}{chapter.4}%
\contentsline {chapter}{\numberline {5}Record of Employment}{27}{chapter.5}%
\contentsline {chapter}{\numberline {6}CALCULATING NET EARNINGS}{29}{chapter.6}%
\contentsline {section}{\numberline {6.1}Employment Income}{29}{section.6.1}%
\contentsline {section}{\numberline {6.2}Allowances}{29}{section.6.2}%
\contentsline {section}{\numberline {6.3}Expenses}{29}{section.6.3}%
\contentsline {section}{\numberline {6.4}Benefits}{29}{section.6.4}%
\contentsline {chapter}{\numberline {7}OBNOARDING EMPLOYEE}{31}{chapter.7}%
\contentsline {section}{\numberline {7.1}Internal Forms}{32}{section.7.1}%
\contentsline {subsection}{\numberline {7.1.1}Authorization for Hiring}{32}{subsection.7.1.1}%
\contentsline {subsection}{\numberline {7.1.2}Union Membership}{32}{subsection.7.1.2}%
\contentsline {subsection}{\numberline {7.1.3}Benefit Enrollment Forms}{32}{subsection.7.1.3}%
\contentsline {subsection}{\numberline {7.1.4}Confidentiality Agreement}{33}{subsection.7.1.4}%
\contentsline {section}{\numberline {7.2}Required Federal and Provincial/Territorial Forms}{33}{section.7.2}%
\contentsline {subsection}{\numberline {7.2.1}Tax Credits (TD1)}{33}{subsection.7.2.1}%
\contentsline {subsection}{\numberline {7.2.2}Tax Credits (TP\sphinxhyphen {}1015.3\sphinxhyphen {}V \sphinxhyphen {} Québec)}{34}{subsection.7.2.2}%
\contentsline {section}{\numberline {7.3}Entering Employee Information into Sage50}{34}{section.7.3}%
\contentsline {subsection}{\numberline {7.3.1}Review Questions}{40}{subsection.7.3.1}%
\contentsline {section}{\numberline {7.4}Content Review Highlights}{41}{section.7.4}%
\contentsline {section}{\numberline {7.5}Review Questions (Sample)}{41}{section.7.5}%
\contentsline {section}{\numberline {7.6}Example Evaluations}{41}{section.7.6}%
\contentsline {chapter}{\numberline {8}Payroll Accounting}{43}{chapter.8}%
\contentsline {section}{\numberline {8.1}Journal Entries}{43}{section.8.1}%
\contentsline {subsection}{\numberline {8.1.1}Accounting Recap}{43}{subsection.8.1.1}%
\contentsline {subsection}{\numberline {8.1.2}Journal Entries}{43}{subsection.8.1.2}%
\contentsline {chapter}{\numberline {9}REVIEW QUESTIONS}{45}{chapter.9}%
\contentsline {section}{\numberline {9.1}New Employee Information}{45}{section.9.1}%
\contentsline {chapter}{\numberline {10}TERMINOLOGY}{47}{chapter.10}%
\contentsline {section}{\numberline {10.1}Pensionable Earnings}{47}{section.10.1}%
\contentsline {section}{\numberline {10.2}Insurable Earnings}{47}{section.10.2}%
\contentsline {chapter}{\numberline {11}RATES FOR 2025}{49}{chapter.11}%
\contentsline {section}{\numberline {11.1}CANADA / QUEBEC PENSION PLAN (CPP / QPP)}{49}{section.11.1}%
\contentsline {section}{\numberline {11.2}CPP2 CONTRIBUTION RATES MAXIMUMS}{49}{section.11.2}%
\contentsline {chapter}{\numberline {12}REFERENCES}{51}{chapter.12}%
\contentsline {chapter}{\numberline {13}Errors and Errata}{53}{chapter.13}%
\contentsline {chapter}{\numberline {14}Glossary}{55}{chapter.14}%
\contentsline {chapter}{\numberline {1}Payroll Objectives and Definitions}{3}{chapter.1}%
\contentsline {section}{\numberline {1.1}Legislation vs. regulation}{4}{section.1.1}%
\contentsline {section}{\numberline {1.2}Payroll Content Knowledge}{4}{section.1.2}%
\contentsline {section}{\numberline {1.3}Technical Skills}{4}{section.1.3}%
\contentsline {section}{\numberline {1.4}Personal and Professional Skills}{4}{section.1.4}%
\contentsline {section}{\numberline {1.5}Behavioural and Ethical Standards}{5}{section.1.5}%
\contentsline {chapter}{\numberline {2}Payroll Stakeholders}{7}{chapter.2}%
\contentsline {section}{\numberline {2.1}Payroll Management Stakeholders}{7}{section.2.1}%
\contentsline {section}{\numberline {2.2}Government Stakeholders}{7}{section.2.2}%
\contentsline {section}{\numberline {2.3}Federal Government}{8}{section.2.3}%
\contentsline {section}{\numberline {2.4}Provincial/Territorial Governments}{8}{section.2.4}%
\contentsline {section}{\numberline {2.5}Internal Stakeholders}{9}{section.2.5}%
\contentsline {section}{\numberline {2.6}External Stakeholders}{9}{section.2.6}%
\contentsline {chapter}{\numberline {3}Content Review}{11}{chapter.3}%
\contentsline {chapter}{\numberline {4}Review Questions}{13}{chapter.4}%
\contentsline {chapter}{\numberline {5}PAYROLL COMPLIANCE}{15}{chapter.5}%
\contentsline {section}{\numberline {5.1}The Canada Revenue Agency}{15}{section.5.1}%
\contentsline {subsection}{\numberline {5.1.1}Canada Pension Plan (CPP)}{16}{subsection.5.1.1}%
\contentsline {subsection}{\numberline {5.1.2}Employment Insurance (EI)}{16}{subsection.5.1.2}%
\contentsline {subsection}{\numberline {5.1.3}Income Tax}{17}{subsection.5.1.3}%
\contentsline {section}{\numberline {5.2}Non\sphinxhyphen {}Compliance Penalties}{17}{section.5.2}%
\contentsline {section}{\numberline {5.3}Employment and Social Development Canada (ESDC)}{18}{section.5.3}%
\contentsline {section}{\numberline {5.4}Service Canada}{19}{section.5.4}%
\contentsline {subsection}{\numberline {5.4.1}Social Insurance Number (SIN)}{19}{subsection.5.4.1}%
\contentsline {section}{\numberline {5.5}Statistics Canada}{20}{section.5.5}%
\contentsline {section}{\numberline {5.6}Personal Privacy}{20}{section.5.6}%
\contentsline {subsection}{\numberline {5.6.1}The Privacy Principles}{20}{subsection.5.6.1}%
\contentsline {subsubsection}{Principle 1. Accountability}{21}{subsubsection*.3}%
\contentsline {subsubsection}{Principle 2. Identifying Purposes}{21}{subsubsection*.4}%
\contentsline {subsubsection}{Principle 3. Consent}{21}{subsubsection*.5}%
\contentsline {subsubsection}{Principle 4. Limiting Collection}{21}{subsubsection*.6}%
\contentsline {subsubsection}{Principle 5. Limiting Use, Disclosure, and Retention}{21}{subsubsection*.7}%
\contentsline {subsubsection}{Principle 6. Accuracy}{21}{subsubsection*.8}%
\contentsline {subsubsection}{Principle 7. Safeguards}{21}{subsubsection*.9}%
\contentsline {subsubsection}{Principle 8. Openness}{21}{subsubsection*.10}%
\contentsline {subsubsection}{Principle 9. Individual Access}{21}{subsubsection*.11}%
\contentsline {subsubsection}{Principle 10. Challenging Compliance}{22}{subsubsection*.12}%
\contentsline {subsection}{\numberline {5.6.2}PIPEDA}{22}{subsection.5.6.2}%
\contentsline {subsubsection}{Consent}{22}{subsubsection*.13}%
\contentsline {subsubsection}{Exceptions to Consent Requirement}{23}{subsubsection*.14}%
\contentsline {subsubsection}{Use and Storage of Personal Information}{23}{subsubsection*.15}%
\contentsline {subsubsection}{Limitations on Use \sphinxhyphen {} the Social Insurance Number example}{23}{subsubsection*.16}%
\contentsline {section}{\numberline {5.7}Pension Benefits Standards Act}{24}{section.5.7}%
\contentsline {section}{\numberline {5.8}Canadian Human Rights Act}{24}{section.5.8}%
\contentsline {section}{\numberline {5.9}Employment Equity Act}{24}{section.5.9}%
\contentsline {section}{\numberline {5.10}Summary}{24}{section.5.10}%
\contentsline {section}{\numberline {5.11}Review Questions}{25}{section.5.11}%
\contentsline {chapter}{\numberline {6}EMPLOYEE vs. INDEPENDENT CONTRACTOR}{27}{chapter.6}%
\contentsline {section}{\numberline {6.1}The Employee\sphinxhyphen {}Employer Relationship}{27}{section.6.1}%
\contentsline {subsection}{\numberline {6.1.1}Contract of Service (Employment)}{27}{subsection.6.1.1}%
\contentsline {subsection}{\numberline {6.1.2}Contract for Service (Subcontracting)}{28}{subsection.6.1.2}%
\contentsline {section}{\numberline {6.2}Factors Determining the Type of Contract}{28}{section.6.2}%
\contentsline {subsection}{\numberline {6.2.1}Control}{29}{subsection.6.2.1}%
\contentsline {subsection}{\numberline {6.2.2}Tools and Equipment}{29}{subsection.6.2.2}%
\contentsline {subsection}{\numberline {6.2.3}Subcontracting Work or Hiring Assistants}{30}{subsection.6.2.3}%
\contentsline {subsection}{\numberline {6.2.4}Financial Risk}{30}{subsection.6.2.4}%
\contentsline {subsection}{\numberline {6.2.5}Responsibility for Investment and Management}{31}{subsection.6.2.5}%
\contentsline {subsection}{\numberline {6.2.6}Opportunity for Profit}{31}{subsection.6.2.6}%
\contentsline {section}{\numberline {6.3}Review Summary}{32}{section.6.3}%
\contentsline {section}{\numberline {6.4}Review Questions}{32}{section.6.4}%
\contentsline {chapter}{\numberline {7}Canada Pension Plan}{37}{chapter.7}%
\contentsline {section}{\numberline {7.1}Who Must Contribute to the Canada Pension Plan}{38}{section.7.1}%
\contentsline {chapter}{\numberline {8}Employment Insurance}{39}{chapter.8}%
\contentsline {chapter}{\numberline {9}Record of Employment}{41}{chapter.9}%
\contentsline {chapter}{\numberline {10}CALCULATING NET EARNINGS}{43}{chapter.10}%
\contentsline {section}{\numberline {10.1}Employment Income}{43}{section.10.1}%
\contentsline {section}{\numberline {10.2}Allowances}{43}{section.10.2}%
\contentsline {section}{\numberline {10.3}Expenses}{43}{section.10.3}%
\contentsline {section}{\numberline {10.4}Benefits}{43}{section.10.4}%
\contentsline {chapter}{\numberline {11}OBNOARDING EMPLOYEE}{45}{chapter.11}%
\contentsline {section}{\numberline {11.1}Internal Forms}{46}{section.11.1}%
\contentsline {subsection}{\numberline {11.1.1}Authorization for Hiring}{46}{subsection.11.1.1}%
\contentsline {subsection}{\numberline {11.1.2}Union Membership}{46}{subsection.11.1.2}%
\contentsline {subsection}{\numberline {11.1.3}Benefit Enrollment Forms}{46}{subsection.11.1.3}%
\contentsline {subsection}{\numberline {11.1.4}Confidentiality Agreement}{47}{subsection.11.1.4}%
\contentsline {section}{\numberline {11.2}Required Federal and Provincial/Territorial Forms}{47}{section.11.2}%
\contentsline {subsection}{\numberline {11.2.1}Tax Credits (TD1)}{47}{subsection.11.2.1}%
\contentsline {subsection}{\numberline {11.2.2}Tax Credits (TP\sphinxhyphen {}1015.3\sphinxhyphen {}V \sphinxhyphen {} Québec)}{48}{subsection.11.2.2}%
\contentsline {section}{\numberline {11.3}Entering Employee Information into Sage50}{48}{section.11.3}%
\contentsline {subsection}{\numberline {11.3.1}Review Questions}{54}{subsection.11.3.1}%
\contentsline {section}{\numberline {11.4}Content Review Highlights}{55}{section.11.4}%
\contentsline {section}{\numberline {11.5}Review Questions (Sample)}{55}{section.11.5}%
\contentsline {section}{\numberline {11.6}Example Evaluations}{55}{section.11.6}%
\contentsline {chapter}{\numberline {12}Payroll Accounting}{57}{chapter.12}%
\contentsline {section}{\numberline {12.1}Journal Entries}{57}{section.12.1}%
\contentsline {subsection}{\numberline {12.1.1}Accounting Recap}{57}{subsection.12.1.1}%
\contentsline {subsection}{\numberline {12.1.2}Journal Entries}{57}{subsection.12.1.2}%
\contentsline {chapter}{\numberline {13}REVIEW QUESTIONS}{59}{chapter.13}%
\contentsline {section}{\numberline {13.1}New Employee Information}{59}{section.13.1}%
\contentsline {chapter}{\numberline {14}TERMINOLOGY}{61}{chapter.14}%
\contentsline {section}{\numberline {14.1}Pensionable Earnings}{61}{section.14.1}%
\contentsline {section}{\numberline {14.2}Insurable Earnings}{61}{section.14.2}%
\contentsline {chapter}{\numberline {15}RATES FOR 2025}{63}{chapter.15}%
\contentsline {section}{\numberline {15.1}CANADA / QUEBEC PENSION PLAN (CPP / QPP)}{63}{section.15.1}%
\contentsline {section}{\numberline {15.2}CPP2 CONTRIBUTION RATES MAXIMUMS}{63}{section.15.2}%
\contentsline {chapter}{\numberline {16}REFERENCES}{65}{chapter.16}%
\contentsline {chapter}{\numberline {17}Errors and Errata}{67}{chapter.17}%
\contentsline {chapter}{\numberline {18}Glossary}{69}{chapter.18}%

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@@ -1,4 +1,4 @@
# Sphinx build info version 1
# This file records the configuration used when building these files. When it is not found, a full rebuild will be done.
config: 102daa45ed65c7ef020e95ee7b1feb68
config: fccddf11afb7cf32ba5c2eaa07f85301
tags: 62a1e7829a13fc7881b6498c52484ec0

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@@ -551,7 +551,7 @@ aspects of processing employees&rsquo; 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
It 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.
@@ -706,13 +706,21 @@ required reports.
<strong>
The legislation
</strong>
specifies the __requirements__.
specifies the
<em>
requirements
</em>
.
</p>
<p>
<strong>
The regulation
</strong>
specifies the __methods__ of applying the legislation.
specifies the
<em>
methods
</em>
of applying the legislation.
</p>
</section>
<section id="payroll-content-knowledge">

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@@ -11,7 +11,7 @@ both the federal and provincial/territorial levels that governs many
aspects of processing employees' pay, their taxable benefits and observing
their rights as employees.
t is important to note that this course deals with payroll, the function of paying employees
It 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.
@@ -95,9 +95,9 @@ The payroll department in a large organization may have:
Legislation vs. regulation
~~~~~~~~~~~~~~~~~~~~~~~~~~~
**The legislation** specifies the __requirements__.
**The legislation** specifies the *requirements*.
**The regulation** specifies the __methods__ of applying the legislation.
**The regulation** specifies the *methods* of applying the legislation.
Payroll Content Knowledge
~~~~~~~~~~~~~~~~~~~~~~~~~~~