National Payroll Institute PF1 Questions & Answers - in .pdf
- Vendor: National Payroll Institute
- Exam Code: PF1
- Exam Name: Payroll Fundamentals 1Exam
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- Vendor: National Payroll Institute
- Exam Code: PF1
- Exam Name: Payroll Fundamentals 1Exam
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.National Payroll Institute PF1 Exam Overview:
| Certification Vendor: | National Payroll Institute |
|---|---|
| Exam Name: | Payroll Fundamentals 1 |
| Exam Number: | PF1 |
| Exam Format: | Remote Proctored Online Exam, Midterm Exam, Final Exam, Assignments, Discussion Activities |
| Related Certifications: | Payroll Compliance Professional (PCP) |
| Available Languages: | English, French |
| Passing Score: | 65% |
| Exam Price: | USD 550-600 |
| Exam Duration: | 180-240 |
| Sample Questions: | National Payroll Institute PF1 Sample Questions |
| Exam Way: | Online asynchronous course with remote proctored midterm and final exams. |
| Pre Condition: | Payroll Compliance Legislation course is required before taking Payroll Fundamentals 1. |
| Official Syllabus URL: | https://payroll.ca/certification/payroll-fundamentals-1 |
National Payroll Institute PF1 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Payroll Accounting | - Payroll accounting practices
|
| Topic 2: Non-Statutory Deductions | - Voluntary deductions
|
| Topic 3: Termination of Employment | - Termination processing
|
| Topic 4: Provincial Remittances | - Provincial payroll requirements
|
| Topic 5: Federal Remittances | - Government remittance obligations
|
| Topic 6: Employment Income – Allowances, Expenses and Benefits | - Taxable and non-taxable benefits
|
| Topic 7: Record of Employment | - ROE processing
|
| Topic 8: Commission Payments | - Commission payroll processing
|
| Topic 9: Year-End Processing | - Federal and provincial year-end reporting
|
| Topic 10: New Employee Information | - Employee setup and documentation
|
| Topic 11: Non-Regular Payments | - Special payroll payments
|
| Topic 12: Employment Income – Regular Earnings | - Regular payroll calculations
|
| Topic 13: Workers’ Compensation | - Workers compensation administration
|
National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:
Question 1
(PF1 Exam - Net Pay Calculation Template Worksheet: Quebec)
Question ID: pf1-exam-npc-q-f
Mara Poirier works for Affordable Transport in Quebec and earns an annual salary of $54,500.00, paid on a semi-monthly basis.
In addition to her regular salary, Mara's employer provides the following benefits:
Group term life insurance coverage through a third party of two times her annual salary.
Monthly group term life insurance premiums are $0.57 per $1,000.00 of coverage, excluding taxes.
Private health insurance benefits with a monthly premium of $260.00, excluding taxes.
The tax on insurance premiums in Quebec is 9%.
Mara's federal TD1 claim code is 3 and her provincial TP-1015.3-V deduction code is C.
Mara will not reach the annual maximums for QPP, EI, or QPIP in this pay period.
Required: Calculate Mara's net pay, following the order of the steps in the net pay template.
EXHIBIT A - Net Pay Template (Fill in all blanks)
Earnings / Income Bases



Step 1 - Calculate Mara's gross earnings for this pay period (GTE).
[ ____________________________________________ ]
Step 2 - Calculate the pensionable earnings (PE).
[ ____________________________________________ ]
Step 3 - Calculate the insurable earnings (IE).
[ ____________________________________________ ]
Step 4 - Calculate the net taxable income (CRA) (NTI).
[ ____________________________________________ ]
Step 5 - Calculate the net taxable income (RQ) (NTI).
[ ____________________________________________ ]
Step 6 - Calculate Mara's Quebec Pension Plan (QPP) contribution.
[ ____________________________________________ ]
Step 7 - Calculate Mara's Employment Insurance (EI) premium.
[ ____________________________________________ ]
Step 8 - Calculate Mara's Quebec Parental Insurance Plan (QPIP) premium.
[ ____________________________________________ ]
Step 9 - Determine Mara's federal income tax.
[ ____________________________________________ ]
Step 10 - Determine Mara's Quebec provincial income tax.
[ ____________________________________________ ]
Step 11 - Calculate Mara's total deductions.
[ ____________________________________________ ]
Step 12 - Calculate Mara's net pay.
[ ____________________________________________ ]
Question 2
In which province or territory is the employer-paid premium for private health insurance coverage that includes dental and prescription coverage considered to be a non-cash taxable benefit?
A. British Columbia
B. Quebec
C. Ontario
D. Yukon
Question 3
An interruption of earnings occurs when there is a period of how many days with no insurable earnings?
A. Five business days
B. Seven calendar days
C. Five calendar days
D. Seven business days
Question 4
Which statutory deductions is salary continuance subject to?
A. All deductions except Employment Insurance and Quebec Parental Insurance Plan premiums
B. All deductions
C. All deductions except Quebec Parental Insurance Plan premiums
D. All deductions except Employment Insurance premiums
Question 5
Which of the following is not correct?
A. Vacation pay reported in Block 17A is reported in Block 15B
B. Severance payments and retiring allowances are not reported in Block 15B
C. Block 15B is not completed when insurable earnings are reported in Block 15C
D. Bonus payments reported in Block 17C are also reported in Block 15B
Solutions:
| Question 1 Answer: Only visible for members | Question 2 Answer: B | Question 3 Answer: B | Question 4 Answer: B | Question 5 Answer: C |
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