National Payroll Institute PF1 Q&A - in .pdf

  • PF1 pdf
  • Exam Code: PF1
  • Exam Name: Payroll Fundamentals 1Exam
  • Updated: Oct 13, 2026
  • Q & A: 75 Questions and Answers
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  • Updated: Oct 13, 2026
  • Q & A: 75 Questions and Answers
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National Payroll Institute PF1 Q&A - Testing Engine

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  • Exam Code: PF1
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National Payroll Institute PF1 Exam Syllabus Topics:

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

National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

Question #1

Which of the following types of earnings are not considered income from employment?

  • A. Regular salary
  • B. Vacation pay
  • C. Commissions
  • D. Severance pay
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #2

Bonus and incentive pays are subject to which statutory deductions?

  • A. Canada/Quebec Pension Plan contributions, Employment Insurance premiums and income taxes
  • B. Canada/Quebec Pension Plan contributions, Employment Insurance and Quebec Parental Insurance Plan premiums, income taxes and Northwest Territories/Nunavut payroll taxes
  • C. Employment Insurance and Quebec Parental Insurance Plan premiums and Northwest Territories
    /Nunavut payroll taxes
  • D. Canada/Quebec Pension Plan contributions, Quebec Parental Insurance Plan premiums, income taxes and Northwest Territories/Nunavut payroll taxes
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #3

The source deductions form completed by all new employees in Quebec is called:

  • A. TP-1015.3-V
  • B. T1213
  • C. T2222
  • D. TD1-AB
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #4

Charlene receives $50.00 each pay for her meals. This is an example of:

  • A. A reimbursement
  • B. An allowance
  • C. A benefit
  • D. None of the above
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #5

Phillip is being paid a severance payment with his final pay. Which block should this payment be reported on the Record of Employment?

  • A. Block 17C only
  • B. Block 15B only
  • C. Block 15C only
  • D. Blocks 15B and 17C
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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