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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. How many pay periods will be used to calculate insurable earnings inBlock 15Bon the Record of Employment if the employee is paidweekly?

A) Last13pay periods (or less if period of employment is shorter)
B) Last7pay periods (or less if period of employment is shorter)
C) Last14pay periods (or less if period of employment is shorter)
D) Last27pay periods (or less if period of employment is shorter)

2. In Block 12 of the Record of Employment, the final pay period ending date for employees who are paid solely by commission or are paid salary plus irregularly paid commission will be:

A) The last date for which paid
B) The Sunday of the week in which the last day for which paid, reported in Block 11, occurs
C) The last date of the pay period
D) The Saturday of the week in which the last day for which paid, reported in Block 11, occurs

3. Paul Westin works for an Alberta organization and receives a regular salary of $1,800.00 semi-monthly. He will be receiving a payout of accrued vacation with no time taken of $1,400.00 on a separate cheque. He has federal and provincial TD1s on file with claim code 1. Calculate the income taxes to be withheld on his vacation pay.

4. Which pension plan requires the services of an actuary to study and forecast future needs of the plan to ensure the plan remains sufficiently funded to provide employees with their retirement benefits?

A) Defined benefit pension plan
B) Registered Retirement Savings Plan
C) Defined contribution pension plan
D) All of the above

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

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