National Payroll Institute Payroll Fundamentals 1Exam - PF1 Exam Questions
QUESTION NO: 1
What is the portion of a retiring allowance eligible to be transferred into a Registered Retirement Savings Plan (RRSP) or a registered pension plan (RPP) tax free based on?
What is the portion of a retiring allowance eligible to be transferred into a Registered Retirement Savings Plan (RRSP) or a registered pension plan (RPP) tax free based on?
Correct Answer: A
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QUESTION NO: 2
Which of the following types of payments made by a private organization would not be subject to all statutory deductions?
Which of the following types of payments made by a private organization would not be subject to all statutory deductions?
Correct Answer: D
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QUESTION NO: 3
Which of the following types of earnings are not considered income from employment?
Which of the following types of earnings are not considered income from employment?
Correct Answer: D
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QUESTION NO: 4
The amount of notice the employer must give an employee depends on:
The amount of notice the employer must give an employee depends on:
Correct Answer: D
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QUESTION NO: 5
A 900-series Social Insurance Number is issued to:
A 900-series Social Insurance Number is issued to:
Correct Answer: B
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QUESTION NO: 6
Matt earns $10.10 per hour and works 37.5 hours per week. Calculate Matt's regular bi-weekly earnings.
Matt earns $10.10 per hour and works 37.5 hours per week. Calculate Matt's regular bi-weekly earnings.
Correct Answer:
$757.50
Explanation:
Regular earnings for an hourly employee are calculated as hourly rate × hours worked. Because "bi-weekly" means two weeks of work paid together, you calculate one week's regular earnings and then multiply by two (assuming the hours are the same each week and there is no overtime premium indicated).
Step 1: Weekly regular earnings:
$10.10 × 37.5 hours = $10.10 × 37 + $10.10 × 0.5
= $373.70 + $5.05
= $378.75.
Step 2: Bi-weekly regular earnings (2 weeks):
$378.75 × 2 = $757.50.
So Matt's regular bi-weekly earnings are $757.50.
In payroll documentation, "regular earnings" are the employee's base wages before statutory deductions (CPP
/QPP, EI, income tax) and before other deductions, and they exclude any separately calculated earnings like overtime premiums or taxable benefits unless stated. This approach (rate × hours, then adjust for pay period) is the standard method used to compute gross/regular pay for hourly employees before moving on to deductions and net pay.
Explanation:
Regular earnings for an hourly employee are calculated as hourly rate × hours worked. Because "bi-weekly" means two weeks of work paid together, you calculate one week's regular earnings and then multiply by two (assuming the hours are the same each week and there is no overtime premium indicated).
Step 1: Weekly regular earnings:
$10.10 × 37.5 hours = $10.10 × 37 + $10.10 × 0.5
= $373.70 + $5.05
= $378.75.
Step 2: Bi-weekly regular earnings (2 weeks):
$378.75 × 2 = $757.50.
So Matt's regular bi-weekly earnings are $757.50.
In payroll documentation, "regular earnings" are the employee's base wages before statutory deductions (CPP
/QPP, EI, income tax) and before other deductions, and they exclude any separately calculated earnings like overtime premiums or taxable benefits unless stated. This approach (rate × hours, then adjust for pay period) is the standard method used to compute gross/regular pay for hourly employees before moving on to deductions and net pay.
QUESTION NO: 7
Charmaine's employment was terminated by her employer on April 13 of the current year. Charmaine had worked for her employer for 3 years and was paid 3 weeks of legislated wages in lieu of notice and two weeks' vacation pay with her final pay. What date should be recorded in Block 11 on Charmaine's Record of Employment?
Charmaine's employment was terminated by her employer on April 13 of the current year. Charmaine had worked for her employer for 3 years and was paid 3 weeks of legislated wages in lieu of notice and two weeks' vacation pay with her final pay. What date should be recorded in Block 11 on Charmaine's Record of Employment?
Correct Answer: A
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QUESTION NO: 8
The Canada Revenue Agency form that is completed to allow a commissioned employee to claim non- reimbursed expenses at source is a:
The Canada Revenue Agency form that is completed to allow a commissioned employee to claim non- reimbursed expenses at source is a:
Correct Answer: C
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