Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Chapter 4
Payroll Fundamentals 2
| Term | Definition |
|---|---|
| Non-statutory deductions (6) | remit and report to various third parties such as: 1. Federal/Provincial Gov't agencies, sheriffs, family support 2. Unions 3. Pension plans 4. Benefit carriers 5. Optional benefit providers 6. Voluntary agencies such as the United Way |
| Deductions are remitted to (4) | 1. Federal gov't bodies 2. Provincial courts 3. Sheriffs' offices 4. Family support offices |
| Remittance schedule | will vary for each garnishment and is clearly outlined in the documentation. |
| Administering any garnishment | be aware of the due date and any grace period. Most don't have grace periods. |
| Penalties for no pay to courts | may be held responsible for the entire amount owing by the employee. |
| Union dues deducted from pay | are to be remitted to union at least once a month or as often specified in the collective agreement. |
| Provided information to union (6) | 1. names 2. salary and other remuneration paid in a current pay period 3. current dues deducted per worker 4. pay date of the current pay period 5. pay period due date 6. approved timesheets and overtime sheets for pay period |
| Registered pension plan (RPP, 4) remittances include (4) | 1. member contributions (defined contributions & benefit) 2. employer contributions (defined contributions) 3. employer current service contributions (defined benefit) 4. employer special contributions (defined benefit) |
| Current service contributions | employers pay the amount of money needed today to provide for the benefits that will be paid in the future, determined by actuarial studies. |
| Additional contributions/Unfunded liabilities | employers pay to defined benefit plans when there is a liability that has accrued in respect of past years. |
| Employer contributions into a defined benefit plan must | provide at least 50% of the pension benefit earned for service from Jan 1, 1987. |
| Employers calculate and remit monthly group insurance premiums (2) | 1. billed system (Head Office account basis) 2. self-administered billing system (self-accounting basis) |
| Billed system | insurance carrier maintains all the individual employee records. Each month before the due date, insurance company will issue a premium statement (amount of insurance in force and premium due). |
| Self-administered billing system | employer maintains all the individual records for its employees. Each month before the due date, employer prepares a monthly premium statement based on individuals records. |
| Changes that may reflect information on billed systems (3) | 1. enrolments (addition of new employees, reinstatements) 2. terminations 3. other changes (name, beneficiary, earnings, dependents, insurable class) |
| Premiums to insurance companies | are due on 1st day of each month. Retail Sales Tax are payable on certain group insurance premiums for employees residing in MB, ONT, and QC. |
| Voluntary deductions | Charitable, social committee, computer purchase plans, employee loan repayment, employee savings accounts, fitness club membership, home insurance, group insurance, parking charges, PRPP, savings bonds, RRSP, security purchase plans |
| Common voluntary programs (3) | 1. charitable donations (United Way or Centraide in QC) 2. group Registered Retirement Savings Plans (RRSP) 3. optional Group Insurance Coverage |
| Employee authorization (3) | 1. sign a written statement requesting or agreeing voluntary deductions from their pay (identify the employee, purpose of the amount, etc). 2. waiver on file to decline deductions 3. written notice to change or stop deductions |
| Charitable donations (3) | 1. employee signed authorization form 2. remittance made same day as employees pay 3. regular remittance on behalf of employer for larger charitable organizations (United Way) |
| Group Registered Retirement Savings Plan | established by a company to allow employees to contribute through payroll deductions. Popular in smaller workforces or companies with high employee turnover. |
| Optional Group Insurance Coverage | through provisions of a group insurance plan, employees may increase their coverage by enrolling into an optional life or AD&D plan. |
| Incorrect or late remittance of charitable donations | could result in inaccurate or missing tax receipts for employees and a deficiency in the funds expected by the charitable organization. |
Created by:
Moorebaier
Popular Accounting sets