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National Payroll Institute PF1 Exam Syllabus Topics:

National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. Phan was employed fromMarch 1, 1992throughJanuary 10, 2007. He was not a member of the organization' s pension plan. Calculate the number of years eligible for the$1,500.00portion of a retiring allowance.

A) 5
B) 2
C) 0
D) 1

2. The amount of notice the employer must give an employee depends on:

A) The size of the employer's payroll
B) The employee's length of service and the jurisdiction in which they work
C) The industry in which the employer operates
D) The employee's length of service and the jurisdiction in which they live

3. Bonus and incentive pays are subject to which statutory deductions?

A) Employment Insurance and Quebec Parental Insurance Plan premiums and Northwest Territories
/Nunavut payroll taxes
B) Canada/Quebec Pension Plan contributions, Quebec Parental Insurance Plan premiums, income taxes and Northwest Territories/Nunavut payroll taxes
C) Canada/Quebec Pension Plan contributions, Employment Insurance and Quebec Parental Insurance Plan premiums, income taxes and Northwest Territories/Nunavut payroll taxes
D) Canada/Quebec Pension Plan contributions, Employment Insurance premiums and income taxes

4. A retiring allowance includes:

A) Legislated wages in lieu of notice in Quebec
B) Bonus or incentive pay
C) Accumulated overtime
D) Vacation pay
E) None of the above

5. An employee in Ontario was paid a $25,000.00 retiring allowance. The eligible portion was $15,000.00 and was transferred to the employee's Registered Retirement Savings Plan (RRSP) by the employer. Calculate the income tax on the non-eligible portion.

A) $5,000.00
B) $1,000.00
C) $2,000.00
D) $7,250.00

Solutions: