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National Payroll Institute PF1 Exam Syllabus Topics:

National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

Question 1

Bonus and incentive pays are subject to which statutory deductions?

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

Question 2

Ronda earns $12.50 per hour and worked 40 hours this week. Calculate her Canada Pension Plan (CPP) contribution for this weekly pay period.

Question 3

The capital cost of an employer-owned vehicle includes:

A. The cost of the vehicle, sales tax, customized heavy-duty suspension and power winches to meet requirement of employment uses
B. The cost of the vehicle, vehicle options, specialized equipment to meet requirements of employment
C. The cost of the vehicle, vehicle options, accessories, sales tax and additions that add to depreciation value
D. The cost of the vehicle excluding sales tax

Question 4

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

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

Question 5

Helen is reimbursed for the cost of the protective clothing that is legally required for her job. The clothing she bought isnot supported by receiptsand is a reasonable reimbursement amount. This is considered:

A. A taxable allowance
B. None of the above
C. A non-taxable allowance
D. A cash taxable benefit

Solutions: