National Payroll Institute PF1 Q&A - in .pdf

  • PF1 pdf
  • Exam Code: PF1
  • Exam Name: Payroll Fundamentals 1Exam
  • Updated: Oct 02, 2026
  • Q & A: 75 Questions and Answers
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National Payroll Institute PF1 Exam Syllabus Topics:

SectionObjectives
Topic 1: Payroll Records and Compliance Reporting- Recordkeeping requirements
  • 1. Retention requirements
    • 2. Employee payroll records
      - Government reporting
      • 1. Year-end reporting (T4 slips)
        • 2. Remittance reporting processes
          Topic 2: Payroll Fundamentals and Compliance Framework- Payroll system overview in Canada
          • 1. Payroll process cycle (gross-to-net)
            • 2. Employer payroll obligations
              - Payroll legislation and regulatory bodies
              • 1. Canada Pension Plan (CPP) requirements
                • 2. Income Tax Act basics
                  • 3. Employment Insurance (EI) rules
                    Topic 3: Earnings, Deductions, and Taxation- Deductions and remittances
                    • 1. Statutory deductions
                      • 2. Voluntary deductions
                        • 3. Employer remittance responsibilities
                          - Types of earnings
                          • 1. Taxable benefits
                            • 2. Regular wages and salaries
                              • 3. Overtime and special payments

                                National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

                                Question #1

                                Phan was employed fromMarch 1, 1992throughJanuary 10, 2007. He was not a member of the organization' s pension plan. Calculate the number of years eligible for the$1,500.00portion of a retiring allowance.

                                • A. 5
                                • B. 2
                                • C. 0
                                • D. 1
                                Reveal Solution  Discussion  0

                                Correct Answer: C  🗳️

                                Explanation: Only visible for DumpsTorrent members. You can sign-up / login (it's free).

                                Question #2

                                A retiring allowance includes:

                                • A. Accumulated overtime
                                • B. Legislated wages in lieu of notice in Quebec
                                • C. Vacation pay
                                • D. Bonus or incentive pay
                                • E. None of the above
                                Reveal Solution  Discussion  0

                                Correct Answer: E  🗳️

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                                Question #3

                                The capital cost of an employer-owned vehicle includes:

                                • A. The cost of the vehicle, vehicle options, accessories, sales tax and additions that add to depreciation value
                                • B. The cost of the vehicle, vehicle options, specialized equipment to meet requirements of employment
                                • C. The cost of the vehicle, sales tax, customized heavy-duty suspension and power winches to meet requirement of employment uses
                                • D. The cost of the vehicle excluding sales tax
                                Reveal Solution  Discussion  0

                                Correct Answer: A  🗳️

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                                Question #4

                                An employee has the use of a company-leased vehicle for both business and personal use. This is an example of:

                                • A. An allowance
                                • B. A benefit
                                • C. An earning
                                • D. An expense reimbursement
                                Reveal Solution  Discussion  0

                                Correct Answer: B  🗳️

                                Explanation: Only visible for DumpsTorrent members. You can sign-up / login (it's free).

                                Question #5

                                Which of the following deductions would be the last payroll withholding in order of priority?

                                • A. Third Party Demand
                                • B. Requirement to Pay
                                • C. Voluntary insurance coverage
                                • D. The organization's pension plan
                                Reveal Solution  Discussion  0

                                Correct Answer: C  🗳️

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