Final answer:
Provincial/territorial pension legislation impacts payroll primarily through Employee contributions (C). While other factors like employee retirement age and pension plan investment strategies affect pensions, they do not direct impact payroll.
Step-by-step explanation:
The areas in provincial/territorial pension legislation that impact payroll include Employee contributions (C). Provincial or territorial legislation will dictate requirements for how much and when employees need to contribute to their pension plans. These contributions are a part of the payroll process because they must be withheld from an employee's paycheck and, frequently, matched by the employer, impacting the overall payroll calculations and employer's financial responsibilities.
Other aspects like employee retirement age (A) and pension plan investment strategies (B) also affect pensions, but not directly the payroll process. Retirement age may dictate when an employee is eligible to receive pension benefits, while investment strategies deal with how the contributions are managed to ensure fund growth over time. However, these do not generally alter the payroll process itself. As pension plans evolve, many employers are shifting towards defined contribution plans like 401(k)s and 403(b)s, which also include regular contributions from both the employee and the employer as part of the payroll.