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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

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


2. Tanya submitted a letter of resignation to her employer on April 2 of the current year advising that she would be resigning her position effective April 27 for the pay period ending April 28. What date will appear in Block
11 of Tanya's Record of Employment?

A) April 2 of the current year
B) April 27 of the current year
C) None of the above
D) April 30 of the current year


3. Which statutory deductions is salary continuance subject to?

A) All deductions
B) All deductions except Employment Insurance premiums
C) All deductions except Employment Insurance and Quebec Parental Insurance Plan premiums
D) All deductions except Quebec Parental Insurance Plan premiums


4. Bonus and incentive pays are subject to which statutory deductions?

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


5. Steve is physically disabled and his employer pays for his parking spot. This is considered:

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


Solutions:

Question # 1
Answer: D
Question # 2
Answer: B
Question # 3
Answer: A
Question # 4
Answer: C
Question # 5
Answer: A

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