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National Payroll Institute PF1 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Employment Income – Regular Earnings | - Regular payroll calculations
|
| Record of Employment | - ROE processing
|
| New Employee Information | - Employee setup and documentation
|
| Year-End Processing | - Federal and provincial year-end reporting
|
| Workers’ Compensation | - Workers compensation administration
|
| Non-Statutory Deductions | - Voluntary deductions
|
| Payroll Accounting | - Payroll accounting practices
|
| Commission Payments | - Commission payroll processing
|
| Termination of Employment | - Termination processing
|
| Federal Remittances | - Government remittance obligations
|
| Provincial Remittances | - Provincial payroll requirements
|
| Employment Income – Allowances, Expenses and Benefits | - Taxable and non-taxable benefits
|
| Non-Regular Payments | - Special payroll payments
|
National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:
Question 1
An organization pays the premiums for a sickness or accident plan for their president only. This would be considered:
A. A non-cash taxable benefit
B. A taxable allowance
C. A cash taxable benefit
D. None of the above
Question 2
Anne Massy works for Liberty Promotions in Nunavut and is provided with a company-leased automobile.
The automobile was in Anne's possession for 365 days. Of the 34,134 kilometres driven, 15,805 kilometres were for business purposes. The monthly lease cost of the vehicle was $198.60, excluding GST calculated at
5%. Anne requested in writing that Liberty Promotions use the optional operating cost method if all conditions apply. She did not reimburse the company for any of the expenses associated with the automobile.
Calculate Anne's annual automobile taxable benefit.
Question 3
The authorization for hiring form should contain a checklist to ensure the organization obtains all required information. What is an example of an item that could be on that checklist?
A. A completed T1213
B. A clearance certificate
C. Consent to withhold statutory deductions
D. A confidentiality agreement
Question 4
National Hardware, an Ontario organization, will be terminating the employment of Emilie St. Germain on October 28, 2019, the last day of the pay period. Emilie started with National Hardware on September 19,
2007. Complete the paper Record of Employment (ROE) for Emilie based on the information provided in the following chart.
Note: Vacationable earnings already include the pay in lieu of notice.
All dates must be entered in the format DDMMYYYY.
Paper ROE (Form Reference)
Complete the following paper ROE blocks for Emilie:
Block 6 - Pay period type
Block 8 - Social Insurance Number
Block 10 - First day worked
Block 11 - Last day for which paid
Block 12 - Final pay period ending date
Block 15A - Total insurable hours
Block 15B - Total insurable earnings
Block 17A - Vacation pay
Block 17C - Other monies (Pay in lieu of notice)
Block 17C - Other monies (Severance)
Step 1 - Complete Block 6
Enter the pay period type for Emilie.
Step 2 - Complete Block 8
Enter Emilie's Social Insurance Number.
Step 3 - Complete Block 10
Enter Emilie's first day worked in DDMMYYYY format.
Step 4 - Complete Block 11
Enter Emilie's last day for which paid in DDMMYYYY format.
Step 5 - Complete Block 12
Enter the final pay period ending date in DDMMYYYY format.
Step 6 - Complete Block 15A
Calculate and enter total insurable hours.
Given:
Hours worked per pay period = 80.00
Bi-weekly ROE pay period chart captures 27 pay periods
Step 7 - Complete Block 15B
Calculate and enter total insurable earnings.
Given:
Pay period earnings = $1,884.62
Bi-weekly ROE pay period chart captures 27 pay periods
Step 8 - Complete Block 17A
Calculate and enter vacation pay.
Given:
Vacation pay rate = 6%
Vacationable earnings = $52,050.00
(already includes pay in lieu of notice)
Step 9 - Complete Block 17C
Enter the correct amount in 17C for "Other monies" specified as Pay in lieu of notice.
Given:
Pay in lieu of notice = 8 weeks
Use weekly earnings derived from the bi-weekly pay period earnings.
Step 10 - Complete Block 17C
Enter the correct amount in 17C for "Other monies" specified as Severance.
Given:
Severance = 10 weeks
Use the same weekly earnings used in Step 9.
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. $1,000.00
C. $2,000.00
D. $5,000.00
Solutions:
| Question 1 Answer: A | Question 2 Answer: Only visible for members | Question 3 Answer: D | Question 4 Answer: Only visible for members | Question 5 Answer: C |
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