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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. The amount of notice the employer must give an employee depends on:

A) The employee's length of service and the jurisdiction in which they work
B) The size of the employer's payroll
C) The employee's length of service and the jurisdiction in which they live
D) The industry in which the employer operates

2. The formula for calculating net pay is:

A) Gross earnings minus total tax
B) Gross earnings minus total deductions
C) Pensionable earnings minus total deductions
D) Net taxable income minus total deductions

3. A premium payment for overtime hours worked or a rate per piece of goods produced is an example of:

A) Benefits
B) Expense reimbursements
C) Earnings
D) Allowances

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

5. Rosa joined Avion Electronics in April 1983. Her employment was terminated on November 30, 2015 and she was paid a $62,500.00 retiring allowance. Rosa joined her company's pension plan in 1986 and was fully vested on termination of employment. Calculate the non-eligible portion of the retiring allowance.

Solutions: