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National Payroll Institute PF1 Exam Syllabus Topics:

National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. Paula is granted a pay increase. The paperwork informing the payroll department of the pay increase is two pay periods late. What method would be used to calculate income taxes on the separate retroactive payment?

A) Retroactive tax method
B) Bonus tax method
C) Lump-sum tax method
D) Tax table method

2. Which of the following company-compulsory deductions would reduce the employee's gross taxable income for purposes of withholding income taxes?

A) Employee payment of provincial health care plan premiums
B) Employee payment of a portion of group benefit plan premiums
C) Employee contributions to a group Registered Retirement Savings Plan (RRSP)
D) All of the above

3. Expense reimbursements are:

A) Dollar amounts paid to employees to cover expenses that they incur while performing their job
B) Dollar amounts paid to employees for the use of their personal property for business purposes
C) Values attributed to something the employer has either provided to an employee or paid for on an employee's behalf
D) Dollar amounts the employer pays for the work an employee performs

4. When is the government-prescribed rate of interest set?

A) The first of each month
B) Annually
C) Each calendar quarter
D) Semi-annually

5. Elodie is paid her commissions together with her bi-weekly salary of $1,000.00. This pay period her commissions are $4,300.00. Calculate her Quebec Pension Plan (QPP) contribution for this pay period.

Solutions: