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National Payroll Institute PF1 Exam Syllabus Topics:

National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

Question 1

Which of the following types of earnings are not considered income from employment?

A. Vacation pay
B. Regular salary
C. Commissions
D. Severance pay

Question 2

Feraz Dalia is due $12,523.00 in legislated wages in lieu of notice that will be added to his last weekly pay of
$1,080.00. Calculate Feraz's Employment Insurance (EI) premium, if his employer is situated in Saskatchewan and the yearly maximum contribution will not be exceeded.

Question 3

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

Question 4

Ursula is 17 years old, works in Quebec and earns $750.00 weekly. Ursula pays weekly union dues of $18.00 along with a special weekly union assessment of $10.00 for construction of a new union hall for its members.
Ursula also has registered pension plan (RPP) contributions of $20.00 deducted from each pay. Calculate Ursula's net federal taxable income.

Question 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. $7,250.00
B. $5,000.00
C. $1,000.00
D. $2,000.00

Solutions: