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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

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) 0
B) 1
C) 2
D) 5

2. An employee-employer relationship is deemed to exist when:

A) The employee refuses the right to be recalled to work
B) The employee continues to participate in some of the benefit plans that were available while they were employed
C) There is no expectation of work to be performed by the employee
D) The employee continues to accrue benefits in the organization's pension plan

3. The deduction for living in a prescribed zone can be claimed by residents of which jurisdictions?

A) New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island
B) Alberta, Saskatchewan and Manitoba
C) All Canadian provinces and territories
D) Northwest Territories, Nunavut and Yukon

4. Select the correct order of priority for withholding payroll deductions from an employee's earnings.

A) Union deductions, statutory deductions, legal deductions, company-compulsory deductions, voluntary deductions
B) Statutory deductions, union deductions, legal deductions, company-compulsory deductions, voluntary deductions
C) Statutory deductions, legal deductions, union deductions, company-compulsory deductions, voluntary deductions
D) Company-compulsory deductions, union deductions, statutory deductions, legal deductions, voluntary deductions

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

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

Solutions: