National Payroll Institute : PF1 Questions & Answers

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National Payroll Institute PF1 Exam Syllabus Topics:

National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

Question 1

The formula for calculating net pay is:

A. Gross earnings minus total deductions
B. Net taxable income minus total deductions
C. Gross earnings minus total tax
D. Pensionable earnings minus total deductions

Question 2

The deduction for living in a prescribed zone can be claimed by residents of which jurisdictions?

A. Northwest Territories, Nunavut and Yukon
B. New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island
C. All Canadian provinces and territories
D. Alberta, Saskatchewan and Manitoba

Question 3

Raminder was hired in January 1997. He was fully vested in the organization's pension plan at the time he received the retiring allowance. His employment was terminated on May 1, 2006 and he was paid a
$10,000.00 retiring allowance. Calculate the eligible portion of the retiring allowance.

A. $2,000.00
B. $10,000.00
C. None of the retiring allowance is eligible
D. $7,500.00

Question 4

In Block 6 of the Record of Employment, what pay period type is entered for employees who are paid salary plus regularly paid commission?

A. Depends on the pay period frequency
B. Weekly
C. Irregular
D. Monthly

Question 5

Which of the following types of payments made by a private organization would not be subject to all statutory deductions?

A. Directors' fees
B. Vacation pay when no time was taken
C. Retroactive adjustment
D. Performance bonus

Solutions: