Financial Literacy Quiz

Question 1

Bi-Weekly

Answer 1

Happening every two weeks.

Question 2

Gross pay

Answer 2

Gross pay is the full paycheck amount, including regular salary, overtime, bonuses, and any other earnings.

Question 3

Income Tax

Answer 3

Income tax: A tax paid on the money you earn (from salary, wages, investments, etc.) to the government.

Question 4

Net Pay

Answer 4

Net pay is the amount of money an employee takes home after all deductions have been subtracted from their gross pay. These deductions can include taxes, benefits, retirement contributions, and other withholdings.

Question 5

Overtime

Answer 5

Overtime refers to the extra hours worked beyond the regular working hours, usually paid at a higher rate than the normal hourly wage.

Question 6

EI

Answer 6

EI (Employment Insurance): A program that offers financial support to unemployed individuals or those unable to work due to specific circumstances, like illness or pregnancy.

Question 7

CPP

Answer 7

CPP (Canada Pension Plan): A government program that provides monthly payments to eligible individuals who are retired, disabled, or to their families after the death of a contributor.

Question 8

T4

Answer 8

T4 (statement of remuneration paid) tax slip that shows your total earnings and the deductions made by your employer, used when filing your income tax return.

Question 9

T4A

Answer 9

T4A; A tax slip that reports income other than salary or wages, like pensions, annuities, or self-employment income.

Question 10

T5

Answer 10

T5 (statement of investment income slip) A tax slip that reports income earned from investments, like interest, dividends, and other investment-related earnings.

Question 11

T4E

Answer 11

T4E: A tax slip that reports the Employment Insurance (EI) benefits you received during the year.

Question 12

T50007

Answer 12

T5007: A tax slip that reports social assistance or workers’ compensation benefits you received during the year.

Question 13

GST

Answer 13

GST (goods and services tax: A tax of 5% on most goods and services sold in Canada, collected by businesses and remitted to the government.

Question 14

HST

Answer 14

HST (Harmonized sales tax): A tax on goods and services that combines the federal GST and the provincial sales tax, applied in some provinces.

Question 15

PST

Answer 15

PST (provincial sale tax) A tax imposed by a province or territory on goods and services, separate from the federal Goods and Services Tax (GST).

Question 16

TD1

Answer 16

TD1;A Personal Tax Credits Return form you fill out to indicate your personal tax credits, which helps your employer calculate how much tax to withhold from your paycheck.

Question 17

Property Tax

Answer 17

Property tax: A tax paid by property owners to local or municipal governments, based on the value of their property (land and/or buildings).

Question 18

CCB

Answer 18

CCB stands for Canada Child Benefit. It is a government program in Canada that provides financial assistance to eligible families with children under the age of 18. The amount of the benefit is based on factors like family income, the number of children, and their ages.

Question 19

NOA

Answer 19

NOA (Notice of Assessment): A document from the Canada Revenue Agency that shows the outcome of your tax return, including how much you owe or your refund.

Question 20

SIN

Answer 20

SIN (Social Insurance Number): A personal identification number used for government services like employment, taxes, and social benefits.

Question 21

SA; Advantages of Being Self-Employed

Answer 21

Being self-employed offers advantages such as flexibility in work hours, control over your business decisions, potential for higher income based on effort and performance, and the ability to deduct business expenses from your taxable income. It also allows for personal growth and the opportunity to follow your passion or create something of your own.

Question 22

SA; Disadvantages of being self-employed

Answer 22

Being self-employed can mean unstable income, no benefits, longer hours, more paperwork, isolation, higher risks, and work-life imbalance.

Question 23

Examples of a Job that Pays in Royalties, contract

Answer 23

Author - Royalties from book sales.

Musician - Royalties from song plays or album sales.

Photographer/Artist - Royalties from image or art sales.

Content Creator - Royalties from YouTube, podcasts, or other media.

Actor - Royalties from TV shows or movie reruns.

Question 24

Advantages of being paid cash

Answer 24

Being paid in cash offers immediate access to your money, privacy with no digital trail, and no bank fees. It also helps with budgeting since you can physically manage your cash, and in some cases, there are no automatic tax deductions.

Question 25

Advantages of being paid direct deposit

Answer 25

Advantages of being paid via direct deposit include secure and reliable payments, no need to visit the bank to deposit checks, timely payments (often on the same day), and easy record-keeping with automatic documentation. Plus, it's convenient and eliminates the risk of lost or stolen checks.

Question 25

Advantages of being paid cheque

Answer 25

Advantages of being paid by cheque include physical proof of payment, the ability to deposit it at your convenience, and it’s safer than carrying large amounts of cash. It also allows you to track payments and use it for bill payments directly.

Question 26

Disadvantages of being paid Cash

Answer 26

Disadvantages of being paid in cash include lack of a record for proof of payment, security risks like theft, no direct deposit for easy access to funds, and it can be harder to save or track spending. Additionally, there's no automatic tax deduction or easy way to deposit large amounts.

Question 27

Disadvantages of being paid Direct Deposit

Answer 27

Disadvantages of being paid via direct deposit include dependence on bank systems, which could have errors or delays, lack of privacy since payments are digital, and bank fees for certain transactions. If your account is compromised, you could also face security risks.

Question 28

Disadvantages of being paid Cheque

Answer 28

Disadvantages of being paid by cheque include delays in processing, the risk of lost or stolen checks, and the need to deposit it at the bank. It can also be inconvenient if you don't have easy access to a bank, and there's a possibility of bounced checks if funds aren't available.

Question 29

Things that influence how much tax you pay

Answer 29

Income level – Higher income generally means higher taxes. Tax deductions – Deductions (e.g., for dependents, mortgage interest) can reduce taxable income. Tax credits – Credits (e.g., for education, charitable donations) directly reduce the tax owed. Filing status – Single, married, or head of household status affects tax rates. Location – Provincial or territorial tax rates can vary. Other income – Investment income or side business earnings can increase tax liability. Employment benefits – Some benefits may be taxable (e.g., employer-provided housing or car).

Question 30

2 reason why you should want to pay taxes

Answer 30

get a refund begin or continue to receive payments like the goods and services tax / harmonized sales tax (GST/HST) credit or the Canada child benefit (CCB) carry forward or transfer unused tuition credits, which will help you or the other person pay less tax earn registered retirement savings plan (RRSP) contribution room, which means you can save more money in your RRSP account

Question 31

What is the cut off to file taxes in Canada is 2025?

Answer 31

In Canada, the tax filing deadline for most individuals in 2025 will be April 30, 2025.

Question 32

Examples of refundable tax credits in Canada

Answer 32

Goods and Services Tax / Harmonized Sales Tax (GST/HST) Credit – Helps low-income individuals and families with the cost of GST/HST. Canada Workers Benefit (CWB) – Provides financial support to low-income workers. Refundable Medical Expense Supplement – For individuals with low-income who have high medical expenses. Provincial Credits – Some provinces, like Ontario and Quebec, offer their own refundable tax credits for residents.

Question 33

Difference of total payable and balance owing? Which one means you get a tax refund when you file taxe?

Answer 33

"Total payable" is the total amount of tax you owe after all calculations, like income and deductions. "Balancing owing" is the amount you still owe after considering any payments you've already made, like withholding or estimated payments. If your balancing owing is negative, it means you've overpaid, and you'll get a refund when you file your taxes.

Question 35

CRA

Answer 35

The CRA (Canada Revenue Agency) is the government agency responsible for collecting taxes and administering tax laws in Canada

Question 36

When is the due date for filling taxes in Canada?

Answer 36

April 30th

Question 37

Salary

Answer 37

A salary is a set amount of money you get paid regularly (like monthly or yearly) for your work, no matter how many hours you put in.

Question 38

jobs with Salary

Answer 38

Teachers Doctors Managers Engineers Accountants Lawyers Nurses

Question 39

Hourly wages

Answer 39

An hourly wage is the amount of money you earn for each hour you work. The more hours you work, the more you get paid. It’s different from a salary, which is a fixed amount regardless of hours worked.

Question 40

Hourly wage jobs

Answer 40

Retail workers (cashiers, sales associates) Food service workers (servers, cooks, baristas) Construction workers Delivery drivers Cleaners/Housekeepers Warehouse workers Healthcare aides (nursing assistants) Landscapers Tutors Customer service representatives

Question 41

When must you do you tax return?

Answer 41

you have to pay tax for the year the Canada Revenue Agency (CRA) sent you a request to file a return