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National Payroll Institute PF1 : Payroll Fundamentals 1Exam

PF1 real exams

Exam Code: PF1

Exam Name: Payroll Fundamentals 1Exam

Updated: Aug 27, 2026

Q & A: 75 Questions and Answers

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National Payroll Institute PF1 Exam Syllabus Topics:

SectionObjectives
Topic 1: Workers’ Compensation- Workers compensation administration
  • 1. Premium calculations
  • 2. Employer reporting
Topic 2: Payroll Accounting- Payroll accounting practices
  • 1. Journal entries
  • 2. Payroll reconciliations
Topic 3: Record of Employment- ROE processing
  • 1. Electronic filing
  • 2. ROE completion requirements
Topic 4: Non-Statutory Deductions- Voluntary deductions
  • 1. Union dues
  • 2. Benefit premiums
Topic 5: Termination of Employment- Termination processing
  • 1. Severance payments
  • 2. Termination pay calculations
Topic 6: Non-Regular Payments- Special payroll payments
  • 1. Bonus payments
  • 2. Vacation pay calculations
Topic 7: Commission Payments- Commission payroll processing
  • 1. Commission earnings calculations
  • 2. Tax treatment of commissions
Topic 8: Employment Income – Allowances, Expenses and Benefits- Taxable and non-taxable benefits
  • 1. Allowances and reimbursements
  • 2. Benefit taxation
Topic 9: Federal Remittances- Government remittance obligations
  • 1. CPP and EI remittances
  • 2. Income tax remittances
Topic 10: Year-End Processing- Federal and provincial year-end reporting
  • 1. Year-end reconciliations
  • 2. T4 and RL-1 preparation
Topic 11: New Employee Information- Employee setup and documentation
  • 1. Payroll records management
  • 2. Federal and provincial tax forms
Topic 12: Employment Income – Regular Earnings- Regular payroll calculations
  • 1. Salary and hourly wage calculations
  • 2. Overtime calculations
Topic 13: Provincial Remittances- Provincial payroll requirements
  • 1. Provincial reporting obligations
  • 2. Provincial payroll taxes

National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

Question 1

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


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

Alyssa is a member of her employer's Defined Contribution Pension Plan. The plan defines the contribution as 3% of the employee's pensionable earnings, with the employer matching the employee's contribution.
Alyssa's pensionable earnings are $3,400.00 per month. Calculate the total payment to be remitted to Alyssa's Defined Contribution Pension Plan each month.


Question 4

The employee-employer relationship is deemed to be severed when:

A. The employee continues to accrue benefits in the organization's pension plan
B. None of the above
C. The employee retains the right to be recalled to work
D. There is no expectation of work to be performed by the employee


Question 5

Anthony earns $750.00 per week. He has a cash taxable benefit of $25.00 per week. Anthony is exempt from CPP contributions. Calculate the net taxable income for the week.


Solutions:

Question 1
Answer: A
Question 2
Answer: Only visible for members
Question 3
Answer: Only visible for members
Question 4
Answer: D
Question 5
Answer: Only visible for members

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