COURSE OUTLINE. Graduate Certificate in Payroll Management

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1 OUTLINE SCHOOL: DEPARTMENT: PROGRAM: TITLE: School of Business Business and Management Graduate Certificate in Payroll Management Payroll Compliance CODE: CPAC 401 TOTAL HOURS: 135 PRE-REQUISITES/CO-REQUISITES: Program Eligibility ELIGIBILITY FOR PRIOR LEARNING ASSESSMENT AND RECOGNITION (PLAR): No ORIGINATED BY: Jim McVittie DATE: Fall 2008 APPOVED BY: Chair/Dean Students should keep all course outlines for each course taken at Centennial College. These may be used to apply for transfer of credit to other educational institutions. A fee may be charged for additional or replacement copies.

2 Course Title: Payroll Compliance CENTENNIAL COLLEGE Course Code: CPAC401 DESCRIPTION: Module 1: Students who complete this module will know the payroll compliance responsibilities that affect organizations, be able to comprehend payroll legislation, and be able to effectively communicate these to all stakeholders. They will able to find relevant information and apply that information to different scenarios in relation to individual pay. Module 2: Students who complete this module will be able to apply payroll legislation and calculate individual pay. This includes all components of individual pay from remuneration, through deductions, to net pay for regular and non-regular situations. Students will be have the content and skills necessary to effectively communicate all aspects of the individual pay calculation process to external and internal stakeholders. In addition, students will be able to accurately complete Records of Employment (ROE). Module 3: Students who complete this module will be able to calculate and report government and third party remittances, year end requirements and accounting for payroll at the compliance level of the organization. Students will be able to effectively communicate these organizational processes and requirements to internal and external stakeholders. LEARNING OUTCOMES: Module 1: Upon completion of this module, you should be able to: Dscribe payroll s objectives and stakeholders Identify an employer/employee relationship Apply federal and provincial legislation to payroll including: o the Canada Pension Plan o the Employment Insurance Act o the Income Tax Act o employment standards legislation o Workers Compensation Acts o Québec-specific legislation Communicate the payroll compliance requirements to various stakeholders Module 2: Upon completion of this module, you should be able to: Calculate regular individual net pay Calculate non-regular individual pay Calculate termination payments Complete a Record of Employment (ROE) Communicate all aspects of individual pay requirements to various stakeholders Module 3 Upon completion of this module, you should be able to: Issued & Revised by COLT: June 2007 THIS ADHERES TO ALL COLLEGE POLICIES (See College Calendar)

3 Calculate organizational remittances to Federal, Provincial and third party stakeholders Prepare accounting documentation for payroll Complete year-end documentation Communicate all aspects of organizational remittances, accounting and year-end requirements to various stakeholders ESSENTIAL EMPLOYABILITY SKILLS: This course supports the students ability to: 1. Communicate clearly, concisely, and correctly in the written, spoken, and visual forms. 2. Reframe information, ideas, and concepts using the narrative, visual, numerical, and symbolic representations. 3. Apply a variety of mathematical techniques with the degree of accuracy required to solve problems and make decisions. 4. Use a variety of computer hardware and software and other technological tools appropriate and necessary to the performance of tasks. 5. Interact with others in groups or teams in ways that contribute to effective working relationships and the achievement of goals. 6. Evaluate her or his own thinking through the steps and processes used in problem solving and decision-making. 7. Collect, analyze and organize relevant and necessary information from a variety of sources. 8. Evaluate the validity of arguments based on qualitative and quantitative information in order to accept or challenge the findings of others. 9. Manage the use of time and other resources to attain personal and/or project-related goals. 10. Take responsibility for her or his own actions and decisions. PRIOR LEARNING ASSESSMENT & RECOGNITION PROCESS (ES): Not eligible. EVALUATION & GRADING SYSTEM: 2 15 % = 30% 1 Midterm 20 % = 20 % 1 Final 50 % = 50 % Total 100% STUDENT ACCOMMODATION: All students have the right to study in an environment that is free from discrimination and/or harassment. It is College policy to provide accommodation based on grounds defined in the Ontario Human Rights Code. Accommodation may include changes or modifications to standard practices.

4 Students with disabilities who require academic accommodations must register with the Centre for Student with Disabilities. Please see the Centre for Students with Disabilities for details. Students requiring accommodation based on human rights grounds should talk with their professors as early as possible. Details are available on the Centennial College website ( ) If students are unable to write an examination due to a medical problem or unforeseen family problems, they should immediately contact their professor or program Chair for advice. In exceptional and well-documented circumstances (e.g. unexpected family problems, serious illness, or death of a close family member), students should be able to write a make-up examination to replace an examination missed. TEXT AND OTHER INSTRUCTIONAL/LEARNING MATERIALS: CPA Study Materials Recommended Equipment: Calculator USE OF DICTIONARIES: Students are permitted to use a bilingual paper dictionary during tests and exams. The invigilator reserves the right to examine the dictionary for any supplemental notations. There is to be no use of electronic devices including dictionaries.

5 Course Title: Payroll Compliance CENTENNIAL COLLEGE Course Code: CPAC401 MODULE (1) Payroll and Its Compliance Environment Chapter 1 identify four uses of the term payroll describe payroll s objectives describe who payroll s stakeholders are differentiate between federal and provincial jurisdiction explain how each stakeholder affects payroll processes and procedures apply the Canada Revenue Agency s four criteria for determining whether an individual is an employee or self-employed 1.2 (2) explain how the employee/employer relationship is determined. Federal Legislation Chapter 2 describe the payroll compliance requirements of the Canada Revenue Agency (CRA) describe the payroll compliance requirements of Human Resources and Skills Development Canada (HRSDC) describe the payroll compliance requirements of Social Issued & Revised by COLT: June 2007 THIS ADHERES TO ALL COLLEGE POLICIES (See College Calendar)

6 Development Canada (SDC) describe the payroll compliance requirements of the following acts: Personal Information Protection and Electronic Documents Act Pensions and Benefits Standards Act describe the relevance to payroll of the Human Rights Act and the Employment Equity Act 1.3 (3) Canada Pension Plan and Employment Insurance Chapter 3 explain the division of responsibility for the Canada Pension Plan (CPP) between the CRA and SDC explain the division of responsibility for Employment Insurance (EI) between the CRA and HRSDC explain the impact the Personal Information Protection and Electronic Documents Act and the Pensions and Benefits Standards Act have on payroll processes and procedures determine if an employee s earnings are pensionable calculate employee and employer Canada Pension Plan contributions calculate employee and employer Employment Insurance premiums Issued & Revised by COLT: June 2007 THIS ADHERES TO ALL COLLEGE POLICIES (See College Calendar)

7 describe the purpose of the Record of Employment identify when the Record of Employment must be completed describe the relationship between payroll information and the Record of Employment 2.1 (4) explain the requirements and calculations of Canada Pension Plan contributions explain the requirements and calculations of Employment Insurance premiums explain the purpose of the Record of Employment Income Tax Chapter 4 identify the criteria that determine which provincial and/or territorial income tax tables to use describe the purpose of the federal, provincial and/or territorial TD1 forms calculate gross taxable income calculate net taxable income determine income tax withholdings Upon completion of this chapter, you should be able to explain how to calculate income tax withholdings Issued & Revised by COLT: June 2007 THIS ADHERES TO ALL COLLEGE POLICIES (See College Calendar)

8 2.2; 2.3 (5, 6) Labour Standards Employment Standards Chapter 5 apply the following employment standards for each jurisdiction: statement of wages minimum age minimum wage hours of work maximum and minimum hours of work, rest periods, averaging hours and compressed work weeks overtime daily and weekly maximum hours, overtime rates and overtime pay for statutory holidays statutory and legislated holidays observance, pay requirements for eligible employees, employees not eligible for statutory holidays vacation vacation time, vacation pay, vacationable earnings leaves bereavement, jury duty, family situations, compassionate care, maternity, parental, paternal, adoption, child care, sick, voting, wedding terminations individual, group, severance pay, temporary layoffs, timing of payments on termination Assignment # 1 due (Covering Chapters 1 4) class 2:3; 6 Issued & Revised by COLT: June 2007 THIS ADHERES TO ALL COLLEGE POLICIES (See College Calendar)

9 3.1 (7) 3.2: 3.3 (8,9) explain Employment Standards legislation to employers and employees draft company policy recommendations for single- and multi-jurisdictional employers Mid-Module Test Mid-Module Test (Covering Chapters 1-5) Class 3.1; 7 Labour Standards Collective Agreements Chapter 6 describe the process of union certification describe how the following affect payroll in a unionized environment: union deductions, taxability, year end reporting the negotiation process the administration of the collective agreement 4.1 (10) Provincial and Territorial Legislation Outside Québec describe the advantages of having payroll involved in the collective agreement negotiation process Chapter 7 describe the different methods of funding health care regular tax base premium based employer tax or levy employee tax or levy identify the health care funding Issued & Revised by COLT: June 2007 THIS ADHERES TO ALL COLLEGE POLICIES (See College Calendar)

10 method used in each province and territory describe how the various funding methods affect organizations and their employees describe payroll s role in the administration of the various health care funding methods describe payroll s responsibilities under provincial privacy legislation describe the Nunavut and the Northwest Territories Payroll Taxes describe payroll s responsibilities under provincial pension and benefits legislation 4.2; 4.3 (11, 12) explain the effect of rate changes, employee provincial and territorial transfers and legislative changes to stakeholders explain employee and employer responsibilities under provincial privacy, pension and benefits legislation and the territorial taxes Québec Legislation Chapter 8 describe the role of the Ministère du Revenu du Québec (MRQ) describe employer responsibilities under the Québec Pension Plan calculate employee and employer Québec Pension Plan contributions describe the purpose of the Issued & Revised by COLT: June 2007 THIS ADHERES TO ALL COLLEGE POLICIES (See College Calendar)

11 Québec TP V form calculate Québec gross taxable income calculate Québec net taxable income determine Québec provincial income tax withholding describe the reporting and remitting requirements of the following employer levies: Québec Health Services Fund (QHSF) Fonds national de formation de la main-d œuvre (FNFMO) Commission des normes du travail (CNT) describe payroll s responsibilities under privacy legislation describe payroll s responsibilities under provincial pension and benefits legislation an employer s responsibilities under the Ministère du Revenu du Québec the requirements and calculations of Québec Pension Plan contributions how to determine an individual s Québec income tax withholding Issued & Revised by COLT: June 2007 THIS ADHERES TO ALL COLLEGE POLICIES (See College Calendar)

12 5.1 (13) Workers Compensation payroll s responsibilities for the three employer levies employee and employer responsibilities under privacy, pension and benefits legislation Chapter 9 apply the workers compensation criteria for determining whether an individual is an employee or selfemployed identify eligibility criteria for workers compensation coverage classes of employees classes of employment identify the funding source for workers compensation benefit programs describe how workers compensation premiums are determined define total annual assessable payroll identify assessable earnings in the various jurisdictions identify how industry classification is used to determine premium rates describe the experience rating program describe the non-compliance penalties describe the employer responsibilities to employees who are receiving workers compensation benefits Assignment # 2 due (Covers chapters 6-8) class 5:1; 13) Issued & Revised by COLT: June 2007 THIS ADHERES TO ALL COLLEGE POLICIES (See College Calendar)

13 5.2 (14) 5.3 (15) MODULE 2 Exam review explain the difference between employee, personal and independent contractor coverage Final Module Exam Final Exam 6.1 (16) 6.2 (17) New Employee Information Employment Income: Regular Earnings Chapter 1 Identify the information necessary to pay an employee Identify the purpose of the following documents required in the commencement package: Authorization for hiring Federal TD1, provincial TD1, and Quebec TP V forms Employment forms for benefit plans Complete the Federal TD1, provincial TD1, and Quebec TP V forms Explain how to complete the federal TD1 form Chapter 2 Describe the following four components of remuneration Earnings Issued & Revised by COLT: June 2007 THIS ADHERES TO ALL COLLEGE POLICIES (See College Calendar)

14 Allowances Expense Reimbursements Benefits Identify payroll frequencies Identify regular employment income Calculate regular earnings on a pay period basis Calculate statutory withholdings on regular earnings Calculate net pay 6.3; 7.1 (18, 19) Allowances, Expenses and Benefits Explain to employees how their net pay was calculated to employees. Chapter 3 Identify the difference between taxable and non-taxable allowances, expenses and benefits Calculate allowances, expenses and benefits Car allowance Meal Clothing Personal Living Expenses Group Life Automobile Loan Private Health Insurance Plans Provincial Health Insurance Plans Gifts and Awards Issued & Revised by COLT: June 2007 THIS ADHERES TO ALL COLLEGE POLICIES (See College Calendar)

15 Employee Assistance Programs Parking Tuition Calculate net pay 7.2 (20) Non-Regular Payments Explain the difference between reasonable and unreasonable car allowances to employers and employees. Chapter 4 Apply statutory withholdings to: Retroactive pay Bonus and incentive pay Vacation pay without time Death benefits Directors fees Calculate net pay Assignment 1: Due (Covers Chapters 1-3 inclusive) Class 7:2; 20) 7.3 (21) 8.1; 8.2 (22, 23) Explain that the bonus tax method is the most accurate method for bonus payments. Mid-Module Test Mid-Module Test Non-Statutory Deductions Chapter 5 Define and prioritize the five categories of deductions: Statutory Legal Union Company Compulsory Voluntary Issued & Revised by COLT: June 2007 THIS ADHERES TO ALL COLLEGE POLICIES (See College Calendar)

16 Describe the payroll compliance requirements of: Legal deductions Union deductions Calculate net pay Confidentially advise an employee of the requirement to garnish their wages. 8.3; 9.1 (24, 25) Termination of Employment Chapter 6 Identify when the employment relationship is severed Apply the relevant employment standards Calculate employment income termination payments Calculate retiring allowance payments Calculate the eligible and noneligible retiring allowances Calculate net pay Explain to your Human Resources department the importance of differentiating the payments made on termination. 9.2; 9.3 (26, 27) Record of Employment (ROE) Chapter 7 Identify when the Record of Employment must be completed Complete the blocks on the Record of Employment Assignment 2: Due (Covers Chapters 4-8) class 9:3; 27 Issued & Revised by COLT: June 2007 THIS ADHERES TO ALL COLLEGE POLICIES (See College Calendar)

17 10.1 (28) Commission Payments Explain to employees how the insurable earnings in Block 15B are calculated and why they do not equal gross earnings on their pay statement. Chapter 8 Apply statutory withholdings to regular and irregular commission payments Identify when a commission Record of Employment must be completed Complete the blocks on the commission Record of Employment Explain to commission employees when a new TD1X must be completed Exam Review (28) 10.3 (30) Final Module Exam Final Exam MODULE (31) Federal Remittances Chapter 1 Differentiate between monies held in trust and operating capital Calculate statutory remittances: Canada Pension Plan Employment Insurance Issued & Revised by COLT: June 2007 THIS ADHERES TO ALL COLLEGE POLICIES (See College Calendar)

18 Federal and non-québec provincial income taxes Apply statutory remittance schedules Reconcile statutory remittances 11.2 (32) Provincial Remittances Explain the financial and legal consequences of non-compliance with statutory remittance requirements Chapter 2 Calculate Québec statutory remittances Québec Pension Plan Québec provincial income tax Québec Health Services Fund contributions Commission des normes du travail contribution Contributions to the one percent manpower training Apply Québec statutory remittance schedules Reconcile Québec statutory remittances Calculate provincial medical premiums/taxes British Columbia Medical Services Plan Alberta Health Care Insurance Plan Issued & Revised by COLT: June 2007 THIS ADHERES TO ALL COLLEGE POLICIES (See College Calendar)

19 Manitoba Health and Post- Secondary Education Tax Levy Ontario Employer Health Tax and Ontario Health Premium Newfoundland Health and Post-Secondary Education Tax Apply provincial medical premiums/taxes remittance schedules Reconcile provincial medical premiums/taxes remittances Reconcile North West Territories /Nunavut Payroll Tax remittance Explain the consequences of noncompliance with Employer Health Tax remittance requirements 11.3 (33) Non-Statutory Deduction Remittances Chapter 3 Apply deduction remittance requirements for unions garnishments pension plans benefit plans voluntary donations 12.1 (34) Workers Compensation/Commi ssion De La Sante Et Chapter 4 Calculate Workers Compensation/ Commission de la santé et de la sécurité du travail assessments Assignment # 1 Due (Covering Chapters 1-3) class 12.1; 34 Issued & Revised by COLT: June 2007 THIS ADHERES TO ALL COLLEGE POLICIES (See College Calendar)

20 De La Securite Du Travail Remittances Apply remittance schedules Reconcile remittances 12.2 (35) 12.3 (36) 13.1 (37) Explain to Accounts Payable why Workers Compensation Board payments are not the same amount throughout the year. Assignment # 1 review Mid-term Review (chapters 1 4) Mid-term Test Mid-Module Test (Covering Chapters Payroll Accounting Chapter 5 Identify the payroll specific accounts in a chart of accounts Prepare a payroll journal entry Determine the effect of payroll journal entries on the income statement and balance sheet Demonstrate the difference between cash accounting and accrual accounting Prepare accrual and reversal journal entries Analyze the payroll expense accounts for reasonableness Reconcile payroll liability accounts Prepare journal entries for payroll corrections Identify the retention requirements for payroll records 1-4) Issued & Revised by COLT: June 2007 THIS ADHERES TO ALL COLLEGE POLICIES (See College Calendar)

21 13.2; 13.3 (38, 39) Explain the impact of posting an employee s payroll expense to the wrong account and how to correct the error. Year-end - Federal Chapter 6 Reconcile payroll registers to accounting ledgers and the Canada Revenue Agency statements Adjust estimates to actual for taxable benefits Calculate and report pension adjustments, past service pension adjustments and pension adjustment reversals List reporting deadlines for yearend for the Canada Revenue Agency Prepare year-end documentation for Canada Revenue Agency: T4 T4A T4 segment T4 summary Calculate and compare pensionable and insurable withholdings with compliance requirements Differentiate the methods of yearend filing formats Issued & Revised by COLT: June 2007 THIS ADHERES TO ALL COLLEGE POLICIES (See College Calendar)

22 List the steps required to amend year-end documents List the items in for the new-year checklist Calculate the Canada/Québec Pension Plan exemption for 27 biweekly or 53 weekly pay periods Adjust for threshold remittance changes 14.1; 14.2 (40, 41) Produce an internal communication to individuals involved in the budget process to inform them of updated statutory rates. Year-end - Québec Chapter 7 Reconcile payroll registers to accounting ledgers and the Ministère du Revenue du Québec statements Adjust estimates to actual for taxable benefits Identify the methods of year-end filing formats Prepare year-end documentation for Ministère du Revenue du Québec: Relevé 1 Relevé 1 Summary Commission des normes du travail contribution (note change to FNFMO)Emploi Québec Issued & Revised by COLT: June 2007 THIS ADHERES TO ALL COLLEGE POLICIES (See College Calendar)

23 Training Tax Calculate and compare pensionable and insurable withholdings with compliance requirements List critical reporting deadlines for year-end for the Ministère du Revenue du Québec List the steps required to amend year-end documents List the items in the new year checklist Adjust for threshold remittance changes 14.3 (42) Year-end Workers Compensation and Provincial Agencies Explain the importance of capturing eligible training expenditures to reduce the employer tax obligations Chapter 8 Complete year-end documentation for: Workers Compensation Boards Ontario Employer Health Tax Québec Health Services Funds Newfoundland and Labrador Health & Post Secondary Tax Manitoba Health and Post Secondary Tax Nunavut/Northwest Territories Payroll Tax List reporting deadlines for year- Issued & Revised by COLT: June 2007 THIS ADHERES TO ALL COLLEGE POLICIES (See College Calendar)

24 end for Workers Compensation and health taxes 15.1 (43) 15.2 (44) 15.3 (45) Communicate a year-end schedule that incorporates all remittance and documentation deadlines to internal stakeholders Year-end Summary Assignment # 2 due (Covering Chapters 4-8) class 15.1; 43 Exam Review Final Exam Final Exam Issued & Revised by COLT: June 2007 THIS ADHERES TO ALL COLLEGE POLICIES (See College Calendar)

25 POLICY STATEMENTS College Policies The following statements are selected from Centennial College policies approved by the Board of Governors. Student Responsibilities Students are expected to know the contents of the course outline and to discuss with the professor any areas where clarification is required. Students should keep all course outlines for each course taken at Centennial College. These may be used to apply for transfer of credit to other educational institutions. A fee may be charged for additional or replacement copies. Other Policies Students should familiarize themselves with all College Policies that cover students rights, responsibilities, and the Academic Appeal process. For further information, consult the Academic Matters Section in the full-time and continuing education calendars. The Academic Appeal Application form is available from any Enrolment Services (Registrar) Office. Proof of Student Status Students are obliged to produce official photo identification at any time during the semester when requested to do so by any professor. (The official piece is the Centennial Student Card.) Continuing Education students do not have Centennial Student Cards, and so they may use other forms of photo identification, such as a driver s license, health card, or other governmentissued photo identification. Final Examinations When writing a test or examination, students must put their official photo-id cards in full view, for review by the invigilator. Students who do not have official photo-id will be permitted to write the examination with a substitute photo-id, but they will be required to produce photo-id at the program or department office within 24 hours or the next business day following the examination, or else the examination results will be void. Faculty Consultation Professors are available to see students outside of class time. Students can contact professors via voice mail, , or through their program or department office. Information regarding how to contact teachers will be provided at the beginning of the course and is also available in the program or department office. Human Rights Statement It is the policy of the College that all programs will strive for a learning, teaching, and working environment that promotes inclusion, understanding and respect for all students and employees, consistent with the Ontario Human Rights Code and the Centennial College's Statement of Diversity. Probationary Policy Please contact your academic department for details.